- RESULTS AHEAD OF TARGETS FOR SECOND CONSECUTIVE YEAR: NET PROFIT AT €1.34BN, DOUBLED VERSUS 2016

- 2019 EBIT STRONGLY UP TO €1.77BN (+18.4%), SUPPORTED BY HIGHER REVENUES AND LOWER COSTS

- DIVIDEND OF €0.463 (+5%Y/Y) IN LINE WITH DELIVER 2022 COMMITMENT

- 2020 NET PROFIT TARGET UPDATED TO €1.3 BN WITH GROWTH IN UNDERLYING PROFITABILITY

- 2020 GUIDANCE UPDATED BASED ON UNIMPACTED ENVIRONMENT
 

2019 Group Financial Highlights

• Higher Revenues: €11,038m (+1.6% vs FY18); adjusted revenues¹ at €10,659m (+3.2% vs FY18) with a sustainable and recurring mix in key areas
• Lower Total Operating Costs: €9,264m (-1.1% vs FY18) with ongoing HR cost discipline ahead of target due to accelerated voluntary early retirements; non-HR cost increase directly supporting business growth, in line with Deliver 2022
• Higher EBIT: €1,774m (+18.4% vs FY18) ahead of 2019 target of €1.6bn; adjusted EBIT² at €1,765m (+5.5% vs FY18) on higher revenues and lower costs
• Higher DPS: €0.463 in FY19 subject to AGM approval; up 5% vs FY18 in line with progressive Deliver 2022 dividend policy
• Higher Total Financial Assets (TFA) at €536bn (+€22bn vs December 2018) driven by positive market effect and €2.9bn net inflows
• Poste Vita Group Solvency II Ratio at 276% as of December 2019 (September 2019: 295%), well above managerial ambition through the cycle of 200%
• Accelerated Group Capex at €734m (+36.3% vs FY18) with focus on advanced IT infrastructure and upgraded logistics facilities to support Deliver 2022 transformation

 

2019 Segment Highlights

• Mail, Parcel & Distribution: Parcel revenue growth mitigating anticipated Mail decline; improved operating profitability supported by accelerated transformation
• Payments, Mobile & Digital: Consolidating leadership in fast-growing digital payments market; revenues further progressing with strong telco and card payment growth
• Financial Services: Underlying profitability improving; continued growth in recurring distribution revenues (loan & mortgage, asset management)
• Insurance Services: Consolidating leadership in life with multiclass offer and growing P&C offer across all product lines

2020 Guidance

• Targets are updated as a result of consistent growth in underlying profitability, taking into consideration current visibility of COVID-19 impact: revenues: €11.1bn; EBIT: €1.8bn; net profit: €1.3bn
• Poste Italiane well positioned to face stress scenarios, thanks to a diversified business model, serving the needs of our retail customers and with a strong balance sheet and no credit risk exposure

 
Rome, 6 March 2020, yesterday, the Board of Directors of Poste Italiane S.p.A. (“Poste Italiane” or the “Group”), chaired by Maria Bianca Farina, approved the 2019 Annual Financial Report, prepared in compliance with IAS/IFRS, and the updated guidance for 2020.
 
Commenting on the results, Matteo Del Fante, Poste Italiane Chief Executive Officer and General Manager, said:
“We have exceeded our financial targets for the second consecutive year, doubling our 2016 net profit, on the back of recurring revenue growth and a continued focus on cost discipline.
 
As a result, we are proposing a 5% increase in the dividend, in line with our Deliver 2022 commitment, and upgrading our 2020 guidance, with continued growth in underlying profitability.
 
Thanks to the industrial transformation carried out in recent years, Poste Italiane is a resilient business thanks to its diversified business model, and is well positioned to face stress scenarios, such as the Covid-19 situation.
 
Taking this all into consideration and on the assumption that the situation will stabilize, we can count on operational and managerial actions to achieve our targets. We will continue to monitor the situation and are doing everything in our power to protect and support our people, customers and wider stakeholders.”  

 

¹ Excluding capital gains and other items

² Excluding 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 CAPITAL MARKETS UPDATE

2019 RESULTS & 2020 GUIDANCE

Friday 6 March 2020 – 13:30 CET
 

WEBCAST

https://edge.media-server.com/mmc/p/af9ccx4w

 

CONFERENCE CALL DETAILS

Italy: +39 06 8750 0896 (Conference ID: 3051088)

 

For more 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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