Poste Italiane Q1 2021 Financial Results (interim results)Yesterday, the Board of Directors of Poste Italiane S.p.A. (“Poste Italiane” or the “Group”), chaired by Maria Bianca Farina, approved First Quarter 2021 Financial Results (unaudited).

- SOLID FINANCIAL PERFORMANCE IN Q1-21 AS BUSINESS CONTINUES TO RECOVER
- STRONG START ON 24SI PLAN EXECUTION, Q1-21 NET PROFIT UP 46% AT €447M
- SUSTAINABLE VALUE CREATION WITH Q1-21 REVENUES UP 9.8% AT €2.9BN
- SOLID Q1-21 OPERATING PROFIT, UP 40.8%, REACHING €620M
- RECORD HIGH PARCELS WITH B2C VOLUMES DOUBLING YEAR-ON-YEAR
- TFA INFLOWS BOOSTED BY INSURANCE PRODUCTS
- STRONG GROWTH IN CARD PAYMENTS WITH INCREASING TRANSACTIONS
- LEADERSHIP IN LOGISTICS AND TECHNOLOGICAL INNOVATION SUPPORTING ITALY’S VACCINATION PROGRAMME
- POSTE ITALIANE CONFIRMED AS STRATEGIC PILLAR FOR ITALY FURTHER STRENGTHENING BRAND REPUTATION

• Q1-21 REVENUES AT €2.9BN, +9.8% Y/Y. STRONG RESULTS, LEVERAGING ON BUSINESS TRENDS AND FOCUSED COMMERCIAL STRATEGY:
  • MAIL, PARCEL & DISTRIBUTION REVENUES AT €917M, +18.9% Y/Y, WITH RECORD HIGH B2C PARCEL VOLUMES;
  • FINANCIAL SERVICES REVENUES AT €1.3BN, -3.8% Y/Y: DAILY GROSS INFLOWS IN INVESTMENT PRODUCTS INCREASING AND ABOVE PRE-PANDEMIC LEVELS;
  • INSURANCE SERVICES REVENUES AT €496M, +40% Y/Y: €5.7BN TOTAL GWP, HALF OF WHICH GENERATED BY MULTICLASS PRODUCTS;
  • PAYMENTS & MOBILE REVENUES AT €192M, +16.5% Y/Y: STRONG DOUBLE-DIGIT GROWTH BOOSTED BY CARD PAYMENTS.
• Q1-21 TOTAL COSTS AT €2.3BN, +3.7% BALANCING COST DISCIPLINE AND SUPPORT TO BUSINESS GROWTH. HR COSTS DOWN ON LOWER FTES AND HIGHER VARIABLE COSTS ENTIRELY RELATED TO RISING BUSINESS VOLUMES;
• Q1-21 EBIT AT €620M, +40.8% Y/Y SUPPORTED BY INSURANCE PRODUCTS, PARCEL GROWTH AND CARD PAYMENTS;
• Q1-21 NET PROFIT AT €447M, +46.0% Y/Y WITH A DIVERSIFIED STRATEGY CONTINUING TO DELIVER;
• TFAs AT €572BN DRIVEN BY €2.7BN NET INFLOWS AND BOOSTED BY LIFE INSURANCE PRODUCTS.

 
Q1 2021 Operational Segment Highlights

• Mail, Parcel & Distribution: impressive parcel volumes growth across all product types (B2C +88%; B2B +45% and C2X +41%) with record high parcel revenues at €368m (+74.5% y/y). New fully automated parcel sorting hub, with 270,000 daily capacity, now operational in Northern Italy. Sengi joint venture already contributing to client base diversification with increasing international volumes (7 million parcels in the quarter). Nexive integration on track with reorganizational kick-off;
• Financial Services: New ‘customer needs’ model launched across the sales network supporting financial advisors. Successful roll-out of tax credits purchase, contributing to enlarge our retail and business customer base, providing further cross selling potential. New automated digital postal saving offer, supporting increased digital channels’ penetration by our financial products offer;
• Insurance Services: Multiclass life insurance products continue to prove successful, now representing half of gross written premiums. P&C growth led by modular offer, providing flexible and tailored solutions for customers’ protection needs;
• Payments & Mobile: 51% increase in e-commerce transactions supporting digital payments strategy and embracing evolving customer spending habits; broadband pilot scheme successfully introduced for employees in preparation of full roll-out to our customer base by the end of May, to capture growth in the Italian broadband market; new contract signed with Vodafone enabling telco traffic cost reduction starting from the second half of the year.

POSTE ITALIANE CONFIRMS ITS ROLE AS ITALY’S STRATEGIC PILLAR SUPPORTING PEOPLE, FAMILIES AND BUSINESSES.
 
WE AIM TO CREATE LONG-TERM VALUE, WITH POSITIVE IMPACT ON CUSTOMERS, COLLEAGUES AND COMMUNITIES.
 
SOME KEY ACHIEVEMENTS IN Q1 2021 INCLUDE:

• Brand Finance Institute “Insurance 100”: ranked first for the second year in a row as the world’s strongest insurance brand, with a Brand Strength Index (BSI) score of 86.2 out of 100 and a corresponding AAA brand strength rating.
• 2020 Intranet Italia Champions: awarded the best corporate intranet portal app for Poste’s employees for ease of use and the ability to facilitate remote working, support internal communication flows and simplify access to corporate services for employees.
• Postepay Green: dedicated card for the 10-to-17-year age group launched with a bio-sourced and recycled card body, with features supported by the Postepay app for smart payments, public transport payments and QR code payments as well as access to the ScontiPoste loyalty programme.
• Smart Postboxes: roll-out of innovative smart post boxes with sensors for collecting and displaying atmospheric and meteorological data. The data collected is used by the public administration for traffic and smog reduction. Touch screen displays are used for information and advertising.
• Fishbowl Generation: as part of the Diversity & Inclusion programme a project has been launched to bridge the gap between age generations within Poste Italiane with the objective of facilitating a more inclusive society. A trial has started with 120 employees from all the Group business divisions.
• Poste Centro Medico: The first onsite clinic for employees successfully launched at Poste Italiane’s corporate headquarters in Rome. The centre is the first of its kind in Italy offering access to all branches of specialist medical care for employees, former employees and their families. As part of the Poste Welfare scheme, the 550 square metre centre allows easy and convenient access to the best medical care where clinicians and physicians visit employee/patients eliminating or drastically reducing travel and waiting time.

 
Yesterday, the Board of Directors of Poste Italiane S.p.A. (“Poste Italiane” or the “Group”), chaired by Maria Bianca Farina, approved First Quarter 2021 Financial Results (unaudited).
 
Matteo Del Fante, Poste Italiane CEO and General Manager, commented:
 
“We have made a strong start in the execution of our ‘2024 Sustain & Innovate’ new strategic plan, delivering a solid financial performance in the first quarter, capturing business momentum and improving economic outlook, while achieving materially enhanced results for our shareholders.
The strong increase in parcel revenues supported by doubling B2C volumes, the continued expansion of card payments and the material progression of our insurance business are all confirming our commitment to successfully execute our strategic plan.
The results are particularly positive, especially bearing in mind that, throughout the quarter, several Italian regions have been under partial lockdown.
We have adapted and continue to evolve in a changing world while providing all of our services with a constant focus on our customers’ needs and preferences.
I am pleased with our revenue and cost performance and we remain focused on supporting Italy as a strategic pillar, through our omnichannel presence and our extraordinary people.
Since the early days of the pandemic last year, our diversified business has demonstrated its resilience, ensuring Poste’s financial integrity. We always step up for our customers, colleagues and communities when they need our support the most; at the same time we deliver for our shareholders remarkable results in every quarter. As we enter the next phase of this pandemic, we remain a key player in supporting the economic recovery.
I am particularly proud of our ongoing partnership with the Italian army as part of the national vaccine roll-out: potentially, up to 37% of the population will be vaccinated booking their appointments on our internally developed cloud platform, with vaccine doses distributed by Poste Italiane.
While we continue to make progress against our strategic targets growing in key areas and accelerating our digital transformation, we are well aware that our success is measured not only by financial performance, but also by how we act responsibly for the country as a whole.
We are agents of change and our extensive physical network will support Italy’s digital transition, also with our involvement in the National Resilience and Recovery Plan.
We remain best positioned to support the economy playing a pivotal role in society, building long-term value and driving sustainable returns for our shareholders”.
 

POSTE ITALIANE Q1 2021 Results

12 May 2021 - 14:30 CEST

To attend click here: Poste Italiane Q1 2021 Results Webcast

A listen only audio conference is also available: +39 02 8020927           

For further information:
 
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


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