Poste Italiane: 1Q2018 financial results

Positive first quarter with early progress on Deliver 2022 five-year strategic plan

Financial Highlights

  1. Net profit at €485m (up 38% vs 1Q17)
  2. Group Revenues reached €2.9bn (up 1.8% vs 1Q17) driven by postal savings
  3. EBIT up significantly to €703m (up 34% vs 1Q17) thanks to cost discipline
  4. Total Financial Assets reached €514bn (up 3.3% y/y) driven by €4.4bn net inflows
  5. Clear visibility with most of 2019 capital gains already secured with forward contracts

Deliver 2022 - Highlights

  • Mail, Parcels & Distribution - Joint delivery model roll out on-going since mid-April, introducing a flexible delivery model merging the mail and parcels networks
  • Payments, Mobile & Digital - Payment institution authorized by authorities with launch expected in the second half of 2018. Number of daily digital users approaching the 1.5m daily post office visitors
  • Financial Services - Distribution agreement with Intesa Sanpaolo supporting Deliver 2022 execution on asset management, loans & mortgages distribution and payments. The CDP Agreement is fully implemented delivering fees from postal savings distribution up by €95m. Capital gains for 2018 booked, while securing most of 2019 with forward contracts
  • Insurance Services – Strong growth in P&C and Private Pension Plan revenues, with on-going selection of potential partners for motor insurance

Rome, 10th May 2018: yesterday, the Board of Directors of Poste Italiane S.p.A (or “the Group”) approved First Quarter 2018 financial results which demonstrated positive performance and early progress on Deliver 2022, the five-year strategic plan designed to unlock the value of the Group’s unique distribution network.

Commenting on the results, Matteo Del Fante, Poste Italiane’s Chief Executive Officer and Managing Director said: “Poste Italiane’s positive first quarter performance demonstrates the immediate impact of Deliver 2022, our five-year strategic plan based on conservative assumptions with very low execution risk. Each business segment has contributed to these results and the real impact is already being seen at both operating and net profit level. In particular, a greater commercial focus is already delivering results across the business, combined with a group-wide cost discipline focus.

The first quarter saw the achievement of several operational milestones which will help us confirm our position as Italy’s most trusted and effective distribution business. Distribution agreements increase the range of products we can offer through our extensive network to our 34 million customers, while the roll-out of the new Joint Delivery model will allow Poste Italiane to truly capitalize on the fast-growing e-commerce parcel market.”

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Source: Poste Italiane

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