The Poste Italiane Group’s profit for 2016 amounts to €622 million, a 12.7% improvement on the figure for 2015, amounting to €552 million. Operating profit of €1,041 million is up 18.3% on the €880 million of 2015.
CONSOLIDATED STATEMENT OF PROFIT AND LOSS
|for the year ended 31 December||Increase/(decrease)|
|Revenue from sales and services and insurance premium revenue||28,627||27,007||1,620||6.0%|
|Postal and Business Services||3,768||3,818||(50)||-1.3%|
|Insurance Services and Asset Management||19,953||18,243||1,710||9.4%|
|Other income from financial and insurance activities||4,421||3,657||764||20.9%|
|Insurance Services and Asset Management||3,817||3,215||602||18.7%|
|Other operating income||64||75||(11)||-14.7%|
|Postal and Business Services||54||64||(10)||-15.6%|
|Insurance Services and Asset Management||2||1||1||n/s|
|Cost of goods and services||2,476||2,590||(114)||-4.4%|
|Net change in technical provisions for insurance business and other claims expenses||21,958||19,683||2,275||11.6%|
|Other expenses from financial and insurance activities||539||689||(150)||-21.8%|
|Capitalised costs and expenses||(25)||(33)||8||24.2%|
|Other operating costs||301||198||103||52.0%|
|Depreciation, amortisation and impairments||581||581||-||n/s|
|Profit/(loss) on investments accounted for using the equity method||6||3||3||n/s|
|Profit/(Loss) before tax||1,056||933||123||13.2%|
|Income tax expense||434||381||53||13.9%|
|Profit for the year||622||552||70||12.7%|
n/s: not significant
Despite the fact that the Postal and Business Services segment contributed a loss of €436 million, this is an improvement of 23.2% on the operating loss of €568 million for the previous year. This reflects the positive contribution from the fees paid by BancoPosta RFC in return for use of the Group’s distribution network.
GROUP – TOTAL REVENUE BY OPERATING SEGMENT
(DATA IN MILLION EURO)
Total revenue of €33.1 billion is up 7.7% on 2015. The improvement primarily reflects the positive performance of insurance services and asset management, where total revenue amounts to €23.8 billion (up 10.8% compared with the previous year).
- Postal and Business Services: contributed total revenue of €3,822 million, registering a reduction of 1.5% due to the expected decline in traditional letter post. It should be noted that there has been an ongoing slowdown in the pace of decline in this segment’s total revenue over a number of quarters.
- Financial Services: total revenue amounts to €5,294 million, marking an increase of 2.7% due to a rise in “Other income from financial activities”, which is up from €442 million in 2015 to €604 million in 2016. This income includes €121 million in non-recurring income generated by the sale of the Group’s investment in Visa Europe Ltd..
- Insurance Services and Asset Management segment: from 1 January 2016, also includes the activities of BancoPosta Fondi Sgr, delivered excellent results during the year (€23.8 billion in total revenue), with Poste Vita and its subsidiary, Poste Assicura, recording premium revenue of €19.9 billion (premium revenue of €18.2 billion in 2015). This primarily reflects the performances of traditional Class I investment and savings products, where the Group has built up a strong presence.
- Other Services: total revenue amounts to €224 million (€243 million in 2015) and is generated by Poste Mobile.