HIGHLIGHTS
OPERATING RESULTS
Profit for the first quarter of 2017 amounts to €351 million, down €16 million on the first quarter of the previous year.
Operating profit totals €526 million (€562 million for the first quarter of 2016) and reflects reduced contributions from the Postal and Business Services segment (operating profit down €42 million compared with the first quarter of 2016) and the Financial Services segment (operating profit down €39 million compared with the first quarter of 2016). The reductions were only partially offset by a positive contribution to operating profit from the Insurance Services and Asset Management segment
RECLASSIFIED CONSOLIDATED STATEMENT OF PROFIT OR LOSS
| for the three months ended 31 March | Increase/(decrease) | |||
|---|---|---|---|---|
| (€m) | 2017 | 2016 | ||
| Revenue from sales and services and insurance premium revenue | 8,011 | 8,277 | (266) | -3.2% |
| Postal and Business Services | 900 | 923 | (23) | -2.5% |
| Financial Services | 1,119 | 1,165 | (46) | -3.9% |
| Insurance Services and Asset Management | 5,942 | 6,132 | (190) | -3.1% |
| Other Services | 50 | 57 | (7) | -12.3% |
| Other income from financial and insurance activities | 1,513 | 1,467 | 46 | 3.1% |
| Financial Services | 398 | 389 | 9 | 2.3% |
| Insurance Services and Asset Management | 1,115 | 1,078 | 37 | 3.4% |
| Other operating income | 15 | 15 | – | n/s |
| Postal and Business Services | 14 | 13 | 1 | 7.7% |
| Financial Services | 1 | 2 | (1) | -50.0% |
| Total revenue | 9,539 | 9,759 | (220) | -2.3% |
| Cost of goods and services | 592 | 600 | (8) | -1.3% |
| Net change in technical provisions for insurance business and other claims expenses | 6,574 | 6,728 | (154) | -2.3% |
| Other expenses from financial and insurance activities | 135 | 197 | (62) | -31.5% |
| Personnel expenses | 1,480 | 1,505 | (25) | -1.7% |
| Capitalised costs and expenses | (9) | (4) | (5) | n/s |
| Other operating costs | 99 | 20 | 79 | n/s |
| Total costs | 8,871 | 9,046 | (175) | -1.9% |
| EBITDA | 668 | 713 | (45) | -6.3% |
| Depreciation, amortisation and impairments | 142 | 151 | (9) | -6.0% |
| Operating profit/(loss) | 526 | 562 | (36) | -6.4% |
| Finance income/(costs) | 2 | 3 | (1) | -33.3% |
| Profit/(loss) on investments accounted for using the equity method | 4 | 3 | 1 | 33.3% |
| Profit/(Loss) before tax | 532 | 568 | (36) | -6.3% |
| Income tax expense | 181 | 201 | (20) | -10.0% |
| Profit for the period | 351 | 367 | (16) | -4.4% |
n/s: not significant
GROUP - TOTAL REVENUE BY OPERATING SEGMENT
(DATA IN MILLION EURO)
Total revenue of €9.5 billion is down 2.3% on the first quarter of 2016.
- Postal and Business Services: contributed total revenue of €914 million, registering a reduction of 2.4% compared with the first quarter of 2016, due to a decline in traditional letter post.
- Financial Services: total revenue amounts to €1,518 million, marking a decline of 2.4%, primarily as a result of lower commissions earned on the distribution of postal savings products. The impact of this was only partly offset by an increase in “Other income from financial activities”, which is up from €389 million in the first quarter of 2016 to €398 million in the first quarter of 2017.
- Insurance Services and Asset Management: contributed €7.1 billion to total revenue (€7.2 billion in the same period of the previous year), with premium revenue amounting to €5.9 billion (premium revenue of €6.1 billion in the same period of 2016). This represents a solid performance for the period, given the sharp decline in the Life market compared with the positive performance of 2016 (market data for new business to February 2017 shows a contraction of approximately 17% at national level).
- Other Services: total revenue amounts to €50 million (€57 million in the same period of 2016).