Rome, 31 Jul 2020 06:30
- Q2-20 REVENUES AT €2.3BN, -13.1% Y/Y (-7.9% H/H TO €5.1BN IN H1-20) IMPACTED BY LOCKDOWN, WITH COMMERCIAL ACTIVITIES GAINING MOMENTUM IN JUNE:
- Q2-20 MAIL, PARCEL & DISTRIBUTION REVENUES AT €701M, -19.9% Y/Y (-16.1% H/H AT €1.5BN IN H1-20) WITH SHARP MAIL DECLINE MITIGATED BY B2C PARCELS BOOST
- Q2-20 PAYMENTS & MOBILE REVENUES AT €172M, +3.5% Y/Y (+10.3% H/H AT €338M IN H1-20) HIGHLIGHTING THE DIGITAL SHIFT AND LOYAL TELCO CUSTOMER BASE
- Q2-20 FINANCIAL SERVICES REVENUES AT €1.1BN, -9.2% Y/Y (-4.9% H/H AT €2.5BN IN H1-20) WITH POSTAL SAVINGS DISTRIBUTION A CORNERSTONE OF RECOVERY SINCE JUNE
- Q2-20 INSURANCE SERVICES REVENUES AT €384M, -16.2% Y/Y (-7.2% H/H AT €739M IN H1-20) WITH MULTICLASS PRODUCTS SUCCESSFULLY REDUCING MARKET VOLATILITY EXPOSURE
- Q2-20 COSTS DOWN TO €2.0BN, -9.6% Y/Y (-2.8% H/H TO €4.3BN IN H1-20) WITH STRUCTURAL EFFICIENCIES ALREADY VISIBLE IN Q2-20
- Q2-20 EBIT AT €325M, -29.9% Y/Y (-29.2% H/H TO €766M IN H1-20) WITH COST REDUCTION ABSORBING 60% OF LOWER REVENUES
- Q2-20 NET PROFIT AT €239M, -26.2% Y/Y (-28.5% H/H TO €546M IN H1-20)
- CONFIRMED CUSTOMERS’ TRUST AND PREFERENCE FOR LIQUIDITY WITH STRONG RETAIL NET INFLOWS OF €8.9BN IN H1-20 – TFA UP TO €548BN IN JUNE
Q2 & H1 2020 Group Financial Highlights
- Revenues impacted by lockdown: Q2 at €2.3bn (-13.1% y/y) and H1 at €5.1bn (-7.9% h/h)
- Total Operating Costs showing visible signs of reduction in Q2: €2.0bn (-9.6% y/y): HR Costs at €1.2bn (-12.0% y/y) supported by lower FTE and performance related expenses; COGS at €580m (+5.2% y/y): quarterly increase related to one-off costs to face the emergency, while higher variable costs related to growing parcels, telco and payments are offset by effective cost initiatives; D&A reduced by €57m to €136m (-29.5% y/y) related to the reassessment of the residual useful life and value of certain real assets in accordance with IFRS. Total costs €4.3bn in H1 (-2.8% h/h)
- EBIT: €325m in Q2 (-29.9% y/y) with lower costs absorbing 60% impact of lower revenues. EBIT €766m in H1 (-29.2% h/h)
- Total Financial Assets (TFA) at €548bn (+€12.2bn vs December 2019) with strong retail net inflows of €8.9bn across all asset classes in a volatile market
- Strong capital position: BancoPosta CET1 ratio at 17.6% and Poste Vita Group Solvency II Ratio at 216%, above managerial ambition of 200% through the cycle
Q2 & H1 2020 Operational Segment Highlights
- Mail, Parcel & Distribution: Sharp decline in Mail volumes from temporary lockdown measures and permanent e-substitution effects. Record high Parcel volumes increase successfully managed in Q2 (+54% y/y) with almost 19m parcels delivered by Postini (+70.5% y/y)
- Payments & Mobile: Over 2 million existing customers used their cards for digital payments for the first time, with a broader activity on Poste’s digital channels, e-commerce transactions and low touch payments
- Financial Services: Renewed commercial focus revamping network sales with average daily gross inflows and loan volumes distributed, recovering since June
- Insurance Services: Gross written premiums in June higher y/y and daily sales of P&C products supported by the modular offer
SUCCESSFULLY MANAGED THE EMERGENCY THANKS TO A DIVERSIFIED BUSINESS AND RESILIENT OPERATIONS - BRAND AND REPUTATION STRENGTHENED
TAKING CARE OF OUR STAKEHOLDERS’ NEEDS DURING THE EMERGENCY
- Customers: guaranteeing business continuity despite a voluntary reduction of non-essential activities and promoting third-party and digital channels
- Employees: service reduction to protect health & safety of our people
- Communities: cooperating with key institutions to facilitate the implementation of State’s social and economic initiatives as well as supporting government entities with our best-in-class logistic capabilities
POSTE ITALIANE’S SOCIAL ROLE WIDELY RECOGNIZED
-
“Best in Media Communication Index” in Corporate Social Responsibility section for the best communication and media impact with a specific mention to activities performed during Covid-19 lockdown period
- Top ranking in the Integrated Governance Index 2020, confirming ESG relevance embedded in Deliver 2022
- “Best ESG Digital Governance Award" for the use of digital platforms managing ESG data
- Awarded UNI ISO 26000 Assurance Statement, certifying the adoption of sustainable ESG policies and UNI EN ISO 14001:2015 certification for environmentally friendly policies across the company
Rome, 31 July 2020, yesterday, the Board of Directors of Poste Italiane S.p.A. (“Poste Italiane” or the “Group”), chaired by Maria Bianca Farina, approved the First Half 2020 Financial Results.
Matteo Del Fante, Poste Italiane Chief Executive Officer and General Manager, commented:
“The first half of the year has been a defining moment for the Country and the company. The benefits of business diversification and operational resilience have been confirmed in a challenging environment. Poste Italiane managed to ensure uninterrupted business while supporting all stakeholders. Extensive co-operation with national institutions continues, with our operational know-how supporting the Protezione Civile’s (Italian Civil Protection Department) logistics activities.
Revenues were penalized by the sharp mail decline, mitigated by a record high B2C parcels delivered also thanks to the fully fledged Joint Delivery Model and our state of the art automated sorting centre in Bologna.
Our digital and third-party distribution channels have effectively complemented the physical network of our post offices, both during lockdown and the recovery phase.
We are seeing growing momentum in revenues, we succeeded to preserve a solid balance sheet and, as planned, we paid 2019 dividend. We are also keeping our dividend strategy unchanged ahead of the Deliver 2022 update in Q4.
We are assessing and executing significant cost reduction initiatives with the aim of preserving long term profitability, with the second quarter already benefitting from some of these actions.
Long term strategic trends, at the heart of our Deliver 2022 plan, have been confirmed. Thanks to the ongoing transformation plan we are able to seize new market opportunities.
I am confident in our ability to drive change and create value for all our stakeholders. The daily hard work of our people and the resiliency they have demonstrated are materially contributing to the gradual commercial recovery which we expect to continue in the second half of the year.”
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POSTE ITALIANE Q2 and H1 2020 Results
Friday 31 July 2020 –14:30 CEST
To attend the event via audio conference, please confirm your participation at the following link:
Poste Italiane Q2 2020 Results Webcast
A personalized PIN will be provided in the confirmation email
Passcode: 4411279
A listen only audio conference is also available:
+39 02 8020927 (Listen-only, Italy – Conference Passcode: 4411279)
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
To see the press release in full version download pdf
