FULL-YEAR 2021 GUIDANCE UPGRADED: EBIT TO €1.8BN AND NET PROFIT TO €1.3BN⁽¹⁾

CONFIRMED INTERIM DIVIDEND OF €0.185 (+14%Y/Y) ON 2021 RESULTS

STRONG Q3-21 REVENUE GROWTH MOMENTUM, UP 7% TO €2.8BN (UP 12% TO €8.4BN IN 9M-21)

Q3-21 EBIT UP 18% TO €566M (UP 30% IN 9M-21 TO €1.6BN), CONFIRMING SUCCESFULL EXECUTION OF 24SI

NET PROFIT UP 14% TO €401M IN Q3-21 (UP 31% TO €1.2BN IN 9M-21)

SOLID OPERATING PERFORMANCE ABOVE PRE-PANDEMIC LEVELS

CONTINUED GROWTH IN ALL PARCEL SEGMENTS AND RECOVERING MAIL REVENUES

PAYMENTS & MOBILE STEADY GROWTH CONTINUING

FINANCIAL AND INSURANCE SERVICES SUPPORTED BY STRONG COMMERCIAL ACTIVITY - TFAs AT €582BN, ABOVE FY-21 TARGET

24SI WELL ON TRACK WITH REDUCED EXECUTION RISK ENHANCING VISIBILITY, OVER AND BEYOND 24SI  

• Q3-21 REVENUES TO €2.8BN, +7.3% Y/Y (+11.7% 9M/9M TO €8.4BN IN 9M-21). POSTE ITALIANE’S SUSTAINABLE BUSINESS MODEL FULLY RETURNING BACK TO PRE-PANDEMIC LEVELS:
  • Q3-21 MAIL, PARCEL & DISTRIBUTION REVENUES TO €849M, +9.0% Y/Y (+18.9% 9M/9M TO €2.7BN IN 9M-21) WITH MAIL REVENUES UP FROM VOLUMES RECOVERY AND NEXIVE CONSOLIDATION AND PARCEL REVENUES GROWING ACROSS ALL SEGMENTS;
  • Q3-21 FINANCIAL SERVICES GROSS REVENUES TO €1.5BN, +9.3% Y/Y (+4.4% 9M/9M TO €4.3BN IN 9M-21) SUPPORTED BY STRONG COMMERCIAL ACTIVITIES AND ACTIVE PORTFOLIO MANAGEMENT;
  • Q3-21 INSURANCE SERVICES REVENUES TO €406M, -10.4% Y/Y (+22.1% 9M/9M TO €1.5BN IN 9M-21) IN LINE WITH EXPECTATIONS. TOTAL GWP AT €3.8BN IN Q3-21 OF WHICH 66% LIFE GWP GENERATED BY MULTICLASS PRODUCTS;
  • Q3-21 PAYMENTS & MOBILE REVENUES TO €220M, +19.2% Y/Y (+18.6% 9M/9M TO €619M): BOOSTED BY CARD PAYMENTS AND INCREASING TELCO CUSTOMERS

• Q3-21 TOTAL COSTS TO €2.2BN, +4.8% Y/Y (+8.1% 9M/9M TO €6.8BN) WITH HR COSTS DOWN SUPPORTED BY LOWER FTEs AND NON-HR-COSTS RELATED TO BUSINESS GROWTH.
• Q3-21 EBIT TO €566M, +18.3% Y/Y (+29.8% 9M/9M TO €1.6BN) SUPPORTED BY STRONG UNDERLYING TRENDS.
• Q3-21 NET PROFIT AT €401M, +13.6% Y/Y (+30.7% 9M/9M TO €1.2BN) WITH A DIVERSIFIED STRATEGY CONTINUING TO DELIVER.
• TFAs TO €582BN OUTPACING THE 24SI TARGET FOR FY-21, DRIVEN BY STRONG INFLOWS IN DEPOSITS AND LIFE INSURANCE MULTILCASS PRODUCTS.

 

Q3 & 9M 2021 Operational Segment Highlights

• Mail, Parcel & Distribution: “Instant Delivery” service in the C2C segment launched in Rome and Milan. The innovative service offers a new ninety-minute delivery service in addition to the “Today” and “Tomorrow” services, with a guaranteed home pick-up to delivery with an hour-and-a-half from the moment the customer orders the service with a click.     
• Financial Services: “Poste Business Link Conto” business current account launched aimed at SME’s, self-employed professionals and sole traders. The new multichannel business account can be managed exclusively via web or app thus further simplifying all daily banking activities with an exclusive cash-back scheme for account cardholders.
• Insurance Services: “Poste Mobile Qui” launched as part of the modular insurance offer with satellite geo-localization services for pets to keep constant track of them if lost or stolen. This service is part of the wider “Protezione Animali Domestici” pet insurance policy offering veterinary, as well as protection from damage caused by the pet.
• Payments & Mobile: Postepay debit card launched for all BancoPosta retail and business accounts: the new cards issued by Postepay will replace all BancoPosta cards not only guaranteeing current services but also offering differentiating value-added services, part of the Postepay ecosystem. PosteCasa Ultraveloce fibre-to-the-home broadband offer has been launched for the public, following the successful trial deployment amongst employees.

 
POSTE ITALIANE PLAYS A STRATEGIC ROLE IN ITALY TO DRIVE SUSTAINABLE GROWTH THROUGH INNOVATION AND DIGITISATION.
 
IN LINE WITH OUR 24SI PLAN, WE ARE SUCCEEDING IN CREATING LONG-TERM VALUE, DELIVERING SHARED GROWTH AMONG OUR STAKEHOLDERS AND THE COMMUNITIES WHERE WE OPERATE, WITH A STRONG COMMITMENT TO OUR ENVIRONMENTAL, SOCIAL AND GOVERNANCE GOALS.
 
SOME KEY ACHIEVEMENTS IN 9M 2021 INCLUDE:

• Poste Italiane joins the MIB ESG index of Euronext and Borsa Italiana: Poste Italiane has joined the new MIB® ESG index launched by Euronext and Borsa Italiana, ranking first among the companies included in the index. The new basket is dedicated to blue chip companies listed in Italy who adopt the best environmental, social and governance (ESG) practices. The index combines measurement of economic performance with ESG considerations, in line with the United Nations (UN) Global Compact principles. Poste Italiane also ranks first in the governance scoring.
• Vigeo-Eiris ESG Overall Score: Poste Italiane holds the highest position in the “Advanced” range, in the Vigeo Eiris classification. For the first time the group not only was ranked first in the Universe of 4,964 companies analysed but also in its “Transport & Logistics” reference universe comprised of 1,628 EMEA companies.
• Digital Communication Awards - Internal Channel - Intranet, Digital Workplace & App: NoidiPoste corporate intranet portal app awarded silver medal in the 2021 awards. The tool is capable of involving, informing and effectively communicating with everyone in Poste Italiane. A device that can be used anywhere and anytime, accessible from public stores, with content and services that are fully customisable. The app has been downloaded over 120,000 times.
• Italian Recovery and Resilience Plan (PNRR): Poste Italiane confirms its role as a strategic pillar for Italy, contributing to the National Recovery Plan with key projects aimed at supporting local communities and remote areas, reducing digital divide, supporting their economic growth and strengthening social cohesion. First, 7,000 post offices in smaller municipalities will be targeted to provide citizens with easy access to government services reducing each community’s carbon footprint by shortening the distances travelled to reach the Public Administration offices of larger centres. A second line of activity is the creation of a network of 250 co-working points nationwide, for local communities and businesses, with training spaces offered at affordable rates. These projects will also help support the Group’s green transition with energy-efficiency solutions and vehicle charging services for citizens.

Yesterday, the Board of Directors of Poste Italiane S.p.A. (“Poste Italiane” or the “Group”), chaired by Maria Bianca Farina, approved 9M 2021 Financial Results (unaudited).
 
Matteo Del Fante, Poste Italiane CEO and General Manager, commented:
“We have reported strong results as the Italian economy continues to improve and all segments regained an even better growth momentum than before the pandemic, demonstrating the benefits of our diversified business model. Against that backdrop, we remain focused on balancing cost efficiencies with investments for growth opportunities.
Mail volumes are recovering as we return to “normality” and parcels continue to grow, trending to a ‘new normal’. Deposit growth was strong and our tax credits’ purchase offer met the favour of a rapidly growing customer base, supporting net interest income even as interest rates remained low. In Insurance services we confirm our ambitious 2021 targets with 66 per cent of life gross written premiums related to our multiclass offer. Within our growing payments and digital offer, the energy business start-up is progressing in line with our envisaged timeline.
The successful implementation of 24SI underpins the upgrade of our 2021 guidance. We are now expecting revenues for the full year 2021 to increase by approximately €100 million compared to our original target, reflecting the strong performance year-to-date and our continued good prospects for the remainder of the year. We continued to demonstrate strong cost control over the course of the year and we now expect lower total costs leading to an EBIT of around €1.8 billion, compared to our original target of €1.7 billion. Upgraded Net Profit now stands at approximately €1.3 billion compared to our previous guidance figure of €1.2 billion, excluding SIA revaluation.
Since the launch of 24SI, several initiatives have been secured both within the Group and externally, paving the way for a successful implementation of the plan, reducing the execution risk to focus on longer-term priorities. We have agreed a new universal service with the Government; confirmed our long-term partnership with Amazon in e-commerce; strengthened the relationship with the workforce with a new labour contract; continued our commitment to postal savings distribution, the most stable source of retail funding for the government; leveraged on new business opportunities such as tax credit purchases and we are playing a key role within Polis linked to the Italian Recovery and Resilience Plan - PNRR. We strongly believe that these are the foundations for Poste Italiane to be successful continually over and beyond the plan horizon.
Each day clients entrust us with more of their business. Our people continue to do a remarkable job, and I couldn't be prouder of how they stepped up to support our clients and deliver another quarter of outstanding results.
I am proud of the role that Poste continues to play for the country’s economic wellbeing and I am pleased that our efforts in ESG have been rewarded. In fact, in October, we ranked number one in the ESG Overall Score by Vigeo-Eiris and we have been included in Borsa Italiana’s first ESG Index.
Our impressive business results allow us to confirm our 2021 dividend policy, with the distribution in November of an interim dividend of 0.185 euro, with a yearly growth of 14 per cent, to recognize to our investors a very visible and progressive dividend once again with confidence in future growth.
The pre-pandemic growth machine has kicked back in and the execution of 24SI is fully on track, giving us the confidence that our longer-term priorities are totally within our reach. I look forward to working with all colleagues across the group in continuing to further deliver sustainable, long-term returns for our shareholders, whilst meeting the needs of broader stakeholders.”
 

[1] Excluding SIA revaluation

POSTE ITALIANE Q3 & 9M 2021 Results
11 November 2021 - 14:30 CET
 
To attend click here: Q3 & 9M 2021 Financial Results

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

To see the press release in full version download pdf


For further information:
 
Poste Italiane S.p.A. Investor Relations                 Poste Italiane S.p.A. Media Relations
Tel. +39 06 5958 4716                                            Tel. +39 06 5958 2097
Mail: investor.relations@posteitaliane.it                  Mail: ufficiostampa@posteitaliane.it