Rome, 13 May 2020 05:03
- 2020 FINANCIAL PERFORMANCE IMPACTED IN MARCH BY LOCKDOWN, WHILE KEY LONG TERM TRENDS CONFIRMED:
- HIGHER CUSTOMER ENGAGEMENT VIA DIGITAL CHANNELS
- ENHANCED B2C VOLUME GROWTH AND ACCELERATED E-SUBSTITUTION
- INCREASING NEED FOR PROTECTION AND GRADUAL RISK EXPOSURE INVESTMENT PRODUCTS
- CUSTOMERS’ TRUST AND PREFERENCE FOR LIQUIDITY LEADING TO STRONG RETAIL NET INFLOWS OF €5.7BN
- REVENUES AT €2,755M (-3% Y/Y) IMPACTED BY LOCKDOWN:
- INCREASING REVENUES IN PAYMENT & MOBILE AND INSURANCE SERVICES MITIGATE LOWER REVENUES FROM MAIL AND FINANCIAL SERVICES
- NET PROFIT AT €306M (-30.2% Y/Y), EBIT AT €441M (-28.6% Y/Y)
- SOLID BALANCE SHEET TO RISE TO THE CHALLENGE: LIMITED LEVERAGE, STRONG CAPITAL POSITION AND LIQUIDITY BUFFERS
- COST BASE REVIEW: PRIORITIZING STRUCTURAL EFFICIENCY MEASURES TO STRENGHTEN OUR SUSTAINABLE BUSINESS
- 2019 DIVIDEND OF €0.463 TO BE APPROVED BY THE AGM OF MAY 15
Prompt reaction to the emergency – setting a new standard for stakeholders
Taking care of our employees
- Reduced physical presence in post offices, sorting and distribution centres
- PPE1 provided to front office and logistic chain personnel
- Sanitization of all premises & fleet as well as Plexiglas protection screens installed
- 15,000 employees smart-working
Safeguarding the health and safety of our customers and guaranteeing service continuity
- Regulating daily footfall in post offices to ensure social distancing
- Maintaining parcels delivery as a priority, responding to client’s needs during lockdown
- Successfully promoting digital and app usage
Supporting our communities as a strategic pillar providing essential services
- Ensuring orderly pension payments on a pre-agreed schedule
- Facilitating State wage support (furlough) payment
- Service provider of emergency income for financially vulnerable citizens
- Supporting municipalities with social aid and PPE distribution
- Agreement with the Carabinieri Corps to home-deliver pensions to most vulnerable seniors
Poste Italiane top player in brand and reputation
- Brand Finance awarded Poste Italiane the title ‘strongest insurance brand’, ranking number 1 out of 100 most valuable insurance brands worldwide
- According to the monthly RepTrack monitor, Poste Italiane’s reputation increased 5.4 percentage points in April, thanks to higher quality of its services (e.g. transparency, price and reliability) as well as the attention paid to key ESG areas (e.g. environment, health & safety, innovation)
Q1 2020 Group Financial Highlights
- Lower Revenues: €2,755m (-3% vs Q1 2019); adjusted revenues2 at €2,456m (-4.4% vs Q1 2019)
- Total Operating Costs: €2,315m (+4% vs Q1 2019) with non-HR cost increased in January and February related to higher business activities and €23m one-off costs to face the emergency in March
- EBIT: €441m (-28.6% vs Q1 2019) on lower revenues impacted by lockdown and one-off costs to face the emergency
- Total Financial Assets (TFA) at €539bn (+€2.6bn vs December 2019) with strong retail net inflows of €5.7bn, driven by liquidity products in a volatile market
- Strong capital position: BancoPosta CET1 at 18.0% and Poste Vita Group Solvency II Ratio at 226%, above managerial ambition of 200% through the cycle
- Significant liquidity and cash-generation along with limited and balanced maturity profile
Q1 2020 Segment Highlights
- Mail, Parcel & Distribution: Parcel revenue growth, with volume peaks comparable to Black Friday and Christmas periods. Contribution from China inbound flows doubled
- Payments & Mobile: Integrated strategy for telco and payments, fully in line with digital channels usage promotion, while leveraging on cross-segment synergies
- Financial Services: Commercial initiatives up to speed, adapting service model to the “new normal”, including remote advisory services
- Insurance Services: Positive performance, capitalizing on strong commercial focus on multiclass products in 2019 and increasing opportunities in P&C through the new modular offer
Rome, 13 May 2020, yesterday, the Board of Directors of Poste Italiane S.p.A. (“Poste Italiane” or the “Group”), chaired by Maria Bianca Farina, approved First Quarter 2020 Financial Results (unaudited).
Commenting on the results, Matteo Del Fante, Poste Italiane Chief Executive Officer and General Manager, said:
“In these extraordinary times, my thoughts go to the communities and individuals hit by COVID-19.
Thanks to the commitment and sense of duty showed by our employees, Poste Italiane has been rapidly adapting its operations, in order to guarantee essential services to our customers and provide support to the Country, in line with its role of strategic backbone for Italy.
While 2020 performance has been impacted by lockdown, recent events have accelerated key emerging trends and confirmed Deliver 2022 strategic direction. Poste Italiane faced the crisis with a solid financial profile, a strong balance sheet and the capability of generating cash thanks to our profitable businesses.
During this unprecedented situation, we protected our employees; we sanitized buildings and fleet, provided PPE and reduced physical presence in post offices, sorting and distribution centres. Remote working was enabled for most headquarter staff, reaping the benefits of our IT investments.
Our loyal customers have continued to benefit from uninterrupted services. We took important measures to protect them, leveraging on our unique multichannel distribution model made up of post offices, third party networks and our digital platform.
In this way we are continuing to engage with customers in different, complementary ways across all of our segments.
We have supported our communities, also with dedicated social initiatives, while collaborating with all institutions.
Throughout its history, Poste Italiane has always been there for its customers and communities. During this crisis, we have continued to support all of our stakeholders, strengthening our reputation. Poste is a systemic player; our role has become more important and this will result in a stronger and sustainable business.
Together, we will rise to the challenge.”
1 Personal Protective Equipment
2 Excluding capital gains and IFRS 9 impact on equity stake in Visa, hedging Visa equity stake derivatives and FV change
POSTE ITALIANE Q1 2020 Results
Wednesday 13 May 2020 – 14:00 CEST
WEBCAST LINKPoste Italiane Q12020 Results webcast
CONFERENCE CALL DETAILSItaly: +39 06 87500896 (Confirmation Code: 1854327)
For more information:
Poste Italiane S.p.A. Investor Relations
Tel. +39 06 5958 4716
Poste Italiane S.p.A. Media Relations
Tel. +39 06 5958 2097