HIGHLIGHTS
Operating results
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.
FINANCIAL REVIEW
| Six months ended 30 June | ||||
|---|---|---|---|---|
| Results of operations (€m) | 2018 | 2017 | Increase/(decrease) | |
| Revenue | 5,429 | 5,498 | (69) | -1.3% |
| of which: | ||||
| Mail, Parcels and Distribution | 1,761 | 1,812 | (51) | -2.8% |
| Payments, Mobile and Digital | 307 | 278 | 29 | 10.4% |
| Financial Services | 2,676 | 2,710 | (34) | -1.3% |
| Insurance Services | 685 | 698 | (13) | -1.9% |
| Total costs | 4,104 | 4,370 | (266) | -6.1% |
| of which: | ||||
| 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% |
| EBITDA | 1,325 | 1,128 | 197 | 17.5% |
| Depreciation, amortisation and impairments | 272 | 281 | (9) | -3.2% |
| EBIT | 1,053 | 847 | 206 | 24.3% |
| EBIT Margin | 19.4% | 15.4% | 4.0% | |
| Finance income/(costs) | 22 | (75) | 97 | n,s, |
| 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.