HIGHLIGHTS
GROUP RESULTS
The performance in the first nine months of 2018 has resulted in consolidated operating profit of €1,509 million, an increase of 28.3% compared with the same period of the previous year (€1,176 million). This primarily reflects reductions in operating costs and personnel expenses.
CONSOLIDATED STATEMENT OF PROFIT AND LOSS AS OF 30 SEPTEMBER 2018
| For the nine months ended 30 September | ||||
|---|---|---|---|---|
| Results of operations (€m) | 2018 | 2017 | Increase/(decrease) | |
| Revenue | 7,951 | 7,893 | 58 | 0.7% |
| of which: | ||||
| Mail, Parcels and Distribution | 2,589 | 2,661 | (72) | -2.7% |
| Payments, Mobile and Digital | 470 | 422 | 48 | 11.4% |
| Financial Services | 3,844 | 3,779 | 65 | 1.7% |
| Insurance Services | 1,048 | 1,031 | 17 | 1.6% |
| Total costs | 6,037 | 6,304 | (267) | -4.2% |
| of which: | ||||
| Total personnel expenses | 4,151 | 4,241 | (90) | -2.1% |
| of which personnel expenses | 4,122 | 4,229 | (107) | -2.5% |
| of which early retirement incentives | 29 | 12 | 17 | n/s |
| Other operating costs | 1,886 | 2,063 | (177) | -8.6% |
| EBITDA | 1,914 | 1,589 | 325 | 20.5% |
| Depreciation, amortisation and impairments | 405 | 413 | (8) | -1.9% |
| EBIT | 1,509 | 1,176 | 333 | 28.3% |
| EBIT Margin | 19.0% | 14.9% | 4.1% | |
| Finance income/(costs) and profit/(loss) on investments accounted for using equity method | 43 | (69) | 112 | n/s |
| Profit before tax | 1,552 | 1,107 | 445 | 40.2% |
| Income tax expense | 496 | 383 | 113 | 29.5% |
| Net profit | 1,056 | 724 | 332 | 45.9% |
| Earnings per share | 0.809 | 0.554 | 0.255 | 45.9% |
n/s: not significant
TOTAL REVENUE BY OPERATING SEGMENT FOR THE NINE MONTHS ENDED 30 SEPTEMBER
(DATA IN MILLIONS OF EURO)
The Group’s total revenue amounts to €8 billion, marking growth of €58 million (0.7%) compared with the same period of the previous year.
- Mail, Parcels and Distribution services: total revenue from Mail, Parcels and Distribution services amounts to €2,589 million, a reduction of 2.7% compared with the first nine months of 2017. This reflects a decrease in traditional letter post, partially offset by the performance of parcels, where volumes were up 9.2% from 81 million items in the first nine months of 2017 to 89 million, resulting in a 5.2% increase in revenue from €501.7 million to €527.7 million.
- Payments, Mobile and Digital segment: contributed €470 million to total revenue, up 11.4% on the first nine months of 2017. This figure includes revenue from payment services, card payments and PosteMobile SpA’s telecommunications services.
- Financial Services: amounts to €3,844 million, an increase of 1.7% compared with the €3,779 million of the same period of the previous year. Alongside an improvement in the interest margin and a 14.6% 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 non-recurring items, and a decrease in revenue due to the sale of Banca del Mezzogiorno–MCC, completed on 7 August 2017.
- Insurance Services: contributed €1,048 million to total revenue, marking an increase of €17 million despite a reduction in gross premium revenue compared with the previous year (a decline of €3.7 billion). The improvement reflects the increase in the net investment result which, in contrast, benefitted from the greater volume of assets under management. As anticipated, total costs are down from the €6.3 billion of 2017 to €6.0 billion, marking a decline of 4.2%.