The performance in 2018 has enabled the Group to achieve consolidated operating profit of €1,499 million, marking an increase of 34% compared with the previous year (€1,123 million), primarily due to revenue growth in almost all the Group’s operating segments and a reduction in operating costs.
Profit for the year is up €709 million, partly reflecting deferred tax income at Poste Vita (€385 million). Capital expenditure rose significantly in order to support the transformation of the Company and the individual businesses.
CONSOLIDATED STATEMENT OF PROFIT AND LOSS
| Results of operations for the year ended 31 December (€m) | 2018 | 2017 | Increase/(decrease) | |
|---|---|---|---|---|
| Total revenue | 10,864 | 10,629 | 236 | 2.2% |
| of which: | ||||
| Mail, Parcels & Distribution | 3,580 | 3,632 | (51) | -1.4% |
| Payments, Mobile and Digital* | 592 | 532 | 61 | 11.4% |
| Financial Services* | 5,221 | 5,010 | 211 | 4.2% |
| Insurance Services | 1,470 | 1,456 | 15 | 1.0% |
| Total costs | 8,796 | 8,961 | (165) | -1.8% |
| of which: | ||||
| Total personnel expenses | 6,137 | 6,093 | 45 | 0.7% |
| of which personnel expenses | 5,519 | 5,593 | (75) | -1.3% |
| of which early retirement incentives | 619 | 500 | 119 | 23.9% |
| Other operating costs | 2,659 | 2,868 | (209) | -7.3% |
| EBITDA | 2,068 | 1,668 | 400 | 24.0% |
| Depreciation, amortisation and impairments | 570 | 545 | 24 | 4.5% |
| EBIT | 1,499 | 1,123 | 376 | 33.5% |
| EBIT Margin | 13.8% | 10.6% | 3.2% | |
| Finance income/(costs) and profit/(loss) | (8) | (55) | 47 | 85.0% |
| Profit before tax | 1,490 | 1,067 | 423 | 39.6% |
| Income tax expense | 92 | 378 | (286) | -75.8% |
| Net profit | 1,399 | 689 | 709 | 102.9% |
| Earnings per share | 1.07 | 0.53 | 0.54 | 102.9% |
* The figures for 2018 and 2017 have been reclassified in accordance with the reorganisation following from the transfer of BancoPosta RFC’s card payments and payment services unit (the Financial Services segment) to the newly established PostePay SpA (the Payments, Mobile and Digital segment) with effect from 1 October 2018.
GROUP – TOTAL REVENUE BY OPERATING SEGMENT
(DATA IN MILLION EURO)
The Group’s total revenue of €10.9 billion is up €236 million (2.2%) compared with the previous year.
- Mail, Parcels and Distribution services: total revenue from Mail, Parcels and Distribution services amounts to €3,580 million, a reduction of 1.4% compared with 2017. This reflects a decrease in traditional letter post and in other revenue, partly offset by the performance of parcels, where volumes were up 12.6% from 113 million items in 2017 to 127 million in 2018, resulting in a 9.8% increase in revenue from €693 million to €761 million.
- Payments, Mobile and Digital: contributed €592 million to total revenue, an increase of 11.4% compared with 2017. This reflects a good performance from card payments, where revenue is up from €238 million in 2017 to €291 million.
- Financial Services: total revenue amounts to €5,221 million, marking growth of 4.2% compared with the €5,010 million of the previous year. Alongside an improvement in the interest margin, the improvement reflects a 16.6% increase in commission income on the collection of postal savings deposits, reflecting the mechanisms established in the new agreement with Cassa depositi e prestiti, as well as a positive contribution from asset management. The result also 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 €1,470 million to total revenue, an increase of €15 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, and a positive contribution from the Non-life business.