Profit for the period
The performance in the first half of 2018 has resulted in consolidated operating profit of €1,053 million, an increase of 24.3% compared with the same period of the previous year (€847 million). This primarily reflects reductions in operating costs and personnel expenses.
|Six months ended 30 June|
|Results of operations|
|Mail, Parcels and Distribution||1,761||1,812||(51)||-2.8%|
|Payments, Mobile and Digital||307||278||29||10.4%|
|Total personnel expenses||2,846||2,934||(88)||-3.0%|
|of which personnel expenses||2,827||2,930||(103)||-3.5%|
|of which early retirement incentives||19||4||15||n,s,|
|Other operating costs||1,258||1,436||(178)||-12.4%|
|Depreciation, amortisation and impairments||272||281||(9)||-3.2%|
|Profit before tax||1,075||772||303||39.2%|
|Income tax expense||340||262||78||29.8%|
|Profit for the period||735||510||225||44.1%|
|Earnings per share||0.563||0.391||0.172||44.1%|
GROUP - REVENUE BY OPERATING SEGMENT
(DATA IN MILLIONS OF EURO)
The Group’s total revenue amounts to €5.4 billion, marking a slight decline of €69 million (1.3%) compared with the same period of the previous year.
- Mail, Parcels and Distribution services: total revenue from Mail, Parcels and Distribution services amounts to €1,761 million, a reduction of 2.8% compared with the first half of 2017. This reflects a decrease in traditional letter post, partially offset by the performance of parcels, where volumes were up 7.3% from 55 million items in the first half of 2017 to 59 million.
- Payments, Mobile and Digital segment: contributed €307 million to total revenue, up 10.4% on the first half of 2017. This figure includes revenue from payment services, e-money products and PosteMobile SpA’s telecommunications services.
- Financial Services: total revenue from Financial Services amounts to €2,676 million, a reduction of 1.3% compared with the €2,710 million of the first half of 2017. Despite a 16% increase in commission income on the collection of postal savings deposits, reflecting the mechanisms established in the new Agreement with Cassa Depositi e Prestiti, the figure reflects a reduction in realised gains, in line with the Group’s new strategy of reducing the dependence of its results on extraordinary items and a decrease in revenue due to the sale of Banca del Mezzogiorno–MCC, completed on 7 August 2017.
- Insurance Servicess: The Insurance Services segment contributed €685 million to total revenue (€698 million in the same period of the previous year), marking a reduction of €13 million and reflecting a slowdown in the Life business, where premium revenue is down from €11.1 billion in the first half of 2017 to €8.8 billion.