The performance in 2017 has enabled the Group to achieve consolidated operating profit of €1,123 million, registering growth of 7.9% compared with the previous year (€1,041 million). This was primarily due to the positive contribution to the result from the Insurance Services segment.
Profit for the year of €689 million is up 10.8% on the previous year (profit of €622 million).
CONSOLIDATED STATEMENT OF PROFIT AND LOSS
| Results of operations for the year ended 31 December (€m) | 2017 | 2016 | Increase/(decrease) | |
|---|---|---|---|---|
| Total revenue | 10,629 | 10,643 | (14) | -0.1% |
| of which: | ||||
| Mail, Parcels and Distribution | 3,631 | 3,822 | (191) | -5.0% |
| Payments, Mobile and Digital | 586 | 570 | 16 | 2.8% |
| Financial Services | 4,956 | 5,009 | (53) | -1.1% |
| Insurance Services | 1,456 | 1,242 | 214 | 17.2% |
| Total costs | 9,506 | 9,602 | (96) | -1.0% |
| of which: | ||||
| Total personnel expenses | 6,093 | 6,241 | (148) | -2.4% |
| of which personnel expenses | 5,594 | 5,732 | (138) | -2.4% |
| of which early retirement incentives | 499 | 509 | (10) | -2.0% |
| Other operating costs | 2,868 | 2,780 | 88 | 3.2% |
| Depreciation, amortisation and impairments | 545 | 581 | (36) | -6.2% |
| EBITDA | 1,668 | 1,622 | 46 | 2.8% |
| EBIT | 1,123 | 1,041 | 82 | 7.9% |
| EBIT Margin | 10.6% | 9.8% | 0.8% | |
| Finance income/(costs) and profit/(loss) on investments accounted for using the equity method | (56) | 15 | (71) | n/s |
| Profit before tax | 1,067 | 1,056 | 11 | 1.0% |
| Income tax expense | 378 | 434 | (56) | -12.9% |
| Profit for the year | 689 | 622 | 67 | 10.8% |
| Earnings per share | 0.53 | 0.48 | 0.05 | 10.9% |
| Dividend per share (€) | 0.42 | 0.39 | 0.03 | 7.7% |
| ROE | 9.6% | 8.9% | 0.7% | |
GROUP – TOTAL REVENUE BY OPERATING SEGMENT
(DATA IN MILLION EURO)
The Group’s total revenue amounts to €10.6 billion and is broadly in line with the previous year (down 0.1%).
- Mail, Parcels and Distribution services: amounts to €3,631 million, marking a decline of 5% compared with 2016. This reflects a reduction in traditional letter post, on the other hand parcel revenue continued to grow.
- Payments, Mobile and Digital segment: hanno contribuito alla formazione dei ricavi per 586 milioni di euro e accolgono i ricavi dei servizi di pagamento, i prodotti di monetica e i servizi di telefonia PosteMobile SpA.
- Financial Services: total revenue is down from €5,009 million in 2016 to €4,956 million (a decline of 1.1%). However, it should be noted that the figure for the comparable period included non-recurring income of €121 million generated by the sale of the Group’s investment in Visa Europe Ltd. and revenue resulting from the investment in Banca del Mezzogiorno–MCC, amounting to approximately €56 million. The figure for 2017, on the other hand, has benefitted from income of €91 million generated by the sale of shares in Mastercard Incorporated. After stripping out the above items from the figure for 2016, revenue for 2017 is up €33 million (1%).
- Insurance Services: contributed €1,456 million to total revenue (€1,242 million in the previous year), confirming the good performance.