Rome, 6 Nov 2019 06:34
- REVENUES AT €8,089M IN 9M19 (+1.7% VS 9M18), €2,568M IN 3Q19 (+1.8% VS 3Q18)
- NET PROFIT AT €1,083M IN 9M19 (+2.6% VS 9M18), €320M IN 3Q19 (-0.4% VS 3Q18)
- EBIT AT €1,540M IN 9M19 (+2.1% VS 9M18), €459M IN 3Q19 (+0.8% VS 3Q18)
- DIVERSIFIED BUSINESS MODEL ADAPTABLE TO MACRO ENVIRONMENT DELIVERING SUSTAINABLE REVENUE AND OPERATING PROFIT GROWTH
- STRONG PLATFORM FOR INNOVATION AND CUSTOMER EXPERIENCE DRIVING GROWTH
- ON TRACK TO MEET 2019 TARGETS ACROSS ALL BUSINESS SEGMENTS
- 2019 INTERIM DIVIDEND OF €0.154 APPROVED; 1/3 OF FY19 DPS IMPLIED BY DELIVER 2022 OF €0.463
9M19 Group Financial Highlights
- Revenues at €8,089m (+1.7% vs 9m18); adjusted revenues1 at €7,807m (+3.7% vs 9m18) with sustainable recurring revenues mix
- Total Operating Costs at €6,549m (+1.6% vs 9m18) with ongoing HR cost discipline thanks to accelerating FTE reduction; non-HR cost increase directly supporting growth
- EBIT at €1,540m (+2.1% vs 9m18); adjusted EBIT2 increased by €122m to €1,288m (+10.5% vs 9m18) fully on track with 2019 guidance
- Total Financial Assets (TFA) at €540bn (+€26bn from December 2018) driven by positive market effect and positive net inflows
- PosteVita Group Solvency II Ratio at 295% as of September 2019 (June 2019: 242%): above managerial ambition through the cycle; improving BTP spreads offset impact of lower interest rates, with transitional measures that will provide additional buffer against potential future market volatility
- Group Capex at €389m (+49.6% vs 9m18) to support ongoing Deliver 2022 transformation; well on track with 2019 guidance
3Q19 Segment Financial Highlights
- Mail, Parcel & Distribution: Revenues on track at €800m (-3.5% y/y); parcel revenues up 14% with B2C up 25%; mail revenues down 8%, compared to strong 3Q18 and due to fully embedded product re-pricing (July 2018). EBIT at -€77m also impacted by higher D&A and costs to support growth
- Payments, Mobile & Digital: Revenues at €171m (+10.6% y/y), thanks to increased card and transaction volumes and successful navigation of competitive telecoms environment; telecoms revenues up 17% to €64m driven by effective commercial initiatives including bundled payment cards and SIM offers; EBIT up 27% to €69m
- Financial Services: Revenues at €1,173m (-0.1% y/y) with strong recurring distribution fees performance; third party loan and mortgage distribution fees up 15% to €74m on growing volumes; postal savings fees down 4% to €432m; asset management fees up at €25m (+12.9% y/y) with mutual funds positive net inflows at €55m in the quarter; transaction revenues down 2% impacted by lower bollettino volumes; interest income up 2% thanks to proactive investments in 4Q18/1Q19; EBIT up 8.5% to €192m
- Insurance Services: Revenues at €423m (+16.5% y/y) supported by Life and P&C growth; Life revenues up 17% coupled with successful diversification to multiclass products (€1.3bn net inflows) and higher financial margin; P&C revenues up 13% driven by all product lines. EBIT up 19.3% to €275m
3Q19 Segment Operational Highlights
- Mail, Parcel & Distribution: Ongoing industrial transformation supported by activation of innovative delivery solutions; Joint Delivery Model now rolled out for 95% of targeted locations; Bologna parcel sorting hub now fully operational; PuntoPoste alternative delivery network reached 4,000 locations (above 2019 target of 3,500)
- Payments, Mobile & Digital: Expanding innovative payment services via Postepay app including high frequency payments solutions; Poste QR code payments pilot ongoing to target cash dominant consumer spending
- Financial Services: Integrating new offerings into an innovative asset gathering model leveraging digital properties; partnership with Moneyfarm adding digital investment services; Intesa Sanpaolo personal loans and UniCredit salary backed loans now in place, carrying no credit risk for Poste
- Insurance Services: Expanding multiclass policy offer designed for dedicated customer segments’ needs, ranging from retail to private, enabling product and portfolio diversification
Commenting on the results, Matteo Del Fante, Poste Italiane Chief Executive Officer and General Manager, said:
“Poste Italiane’s uniquely diversified business model is delivering continued growth and we are well on track to meet 2019 targets for all business segments. The flexibility of our model is best demonstrated by the strong performance of our Insurance Services and Payments, Mobile & Digital segments, which both boosted group results for the period.
The industrial transformation already carried out as part of the Deliver 2022 strategic plan, has laid the foundations for future growth focussed on innovation and customer experience and we are growing into a dynamic and digitally native company, actively supporting the lives of our 35 million customers.
The key to the Group’s success is our widespread national presence through our network – no other company understands local communities like Poste and we will continue to work together with local municipalities of all sizes through initiatives like Piccoli Comuni which has now been expanded.
All of this is made possible by the support of our employees who have embraced this transformation and are ensuring seamless execution as we seek opportunities to add further value.”
3Q19 and 9M19 RESULTS
Wednesday 6 November 2019 – 13:30 CET
WEBCAST
https://edge.media-server.com/mmc/p/4bgxij29
CONFERENCE CALL DETAILS
Italy: +39 06 8750 0896 (Conference ID: 2156329)1 Excluding capital gains and IFRS 9 impact on equity stake in Visa
2 Excl. capital gains, IFRS 9 impact on equity stake in Visa, early retirement incentives, capital losses, hedging Visa equity stake derivatives, FV change and real estate funds provisions
Poste Italiane S.p.A. Investor Relations
Tel. +39 06 5958 4716
Mail: investor.relations@posteitaliane.it
Poste Italiane S.p.A. Media Relations
Tel. +39 06 5958 2097
Mail: ufficiostampa@posteitaliane.it
To see the press release in full version download pdf.
