Rome, 28 Jul 2022 06:05
STRONG IMPROVEMENT IN PROFITABILITY WITH Q2-22 EBIT AT €698M (+62.7% Y/Y)
H1-22 EBIT OF €1.4BN (+32.6% Y/Y), A RECORD IN THE GROUP HISTORY
IMPRESSIVE REVENUE GROWTH OF 5.1% TO €2.9BN IN Q2-22, SUCCESFULLY NAVIGATING A CHALLENGING ENVIRONMENT
SOLID PERFORMANCE IN FINANCIAL SERVICES IN Q2, THANKS TO A CONTRIBUTION FROM ACTIVE PORTFOLIO MANAGEMENT AND RECURRING HIGHER NET INTEREST INCOME (NII)
DOUBLE-DIGIT REVENUE GROWTH IN PAYMENTS & MOBILE IN THE QUARTER, RECORDING A GROWTH RATE HIGHER THAN 20% FOR THE THIRD TIME IN THE LAST FOUR QUARTERS
RESILIENT QUARTER REVENUES FOR MAIL, PARCEL & DISTRIBUTION- SOLID CONTRIBUTION FROM COST BASE TRANSFORMATION LEADING TO POSITIVE EBIT
STABLE REVENUES IN THE QUARTER FOR INSURANCE SERVICES WITH STRONG P&C SUPPORTED BY HIGHER GWP
DIVERSIFIED BUSINESS MODEL AND PROACTIVE COST SAVING INITIATIVES ENSURING SUSTAINABLE REVENUE & EBIT GROWTH
2022 EBIT EXPECTED TO DOUBLE 2016 LEVEL (€1.0BN), WITH A CONSTANT TRACK-RECORD UNDER ANY MACRO SCENARIO
€0.405 PER SHARE PAID IN JUNE 2022 AS THE BALANCE OF THE DIVIDEND, FOLLOWING THE INTERIM DIVIDEND OF €0.185 EUROS PER SHARE ALREADY PAID IN NOVEMBER 2021 - OVERALL DIVIDEND OF €0.590 PER SHARE FOR 2021
ALL BUSINESSES IN LINE WITH THE STRATEGIC TARGETS SET IN “24SI PLUS” PLAN
- Q2-22 REVENUES AT €2.9BN, +5.1% Y/Y (+3.2% Y/Y TO €5.9BN IN H1-22):
- Q2-22 MAIL, PARCEL & DISTRIBUTION REVENUES AT €904M, -0.9% Y/Y (-1.4% Y/Y TO €1.8BN IN H1-22) WITH RESILIENT MAIL REVENUES THANKS TO HIGHER MARGIN INTEGRATED-SERVICES COMPENSATING PARCEL BUSINESS, IMPACTED BY LOWER CONSUMER CONFIDENCE.
- Q2-22 FINANCIAL SERVICES GROSS REVENUES TO €1.4BN, +10.5% Y/Y (+4.1% Y/Y TO €2.9BN IN H1-22), THANKS TO STRONG AND RECURRING NII GROWTH (+21.8% Y/Y) SUPPORTED BY INCREASING INTEREST RATES AND TAX CREDIT INVESTMENTS.
- Q2-22 INSURANCE SERVICES REVENUES BROADLY STABLE AT €544M, -1.2% Y/Y COMPARED TO Q2-21 IMPACTED BY FRONT LOADING OF FY-21 INVESTMENT MARGIN (+2.7% Y/Y TO €1.1BN IN H1-22). WITH P&C GWP RECORDING A DOUBLE-DIGIT GROWTH (+24.8% Y/Y) TO €85M.
- Q2-22 PAYMENTS & MOBILE REVENUES TO €250M, +21.0% Y/Y (+20.7% Y/Y TO €482M IN H1-22), WITH ACCELERATED CARD AND DIGITAL PAYMENTS AND INCREASING TELCO REVENUES.
- Q2-22 TOTAL COSTS TO €2.2BN, -5.5% Y/Y (-3.5% Y/Y TO €4.5BN IN H1-22) LEADING TO A BEST-IN-CLASS PROFITABILITY. Q2-22 ORDINARY HR COSTS TO €1.3BN, DOWN -4.8% Y/Y (-3.5% Y/Y TO €2.6BN IN H1-22), WITH HIRINGS IN H1-22 TOTALLING 3.6k FTEs (110% OF TOTAL HIRINGS IN FY-21). Q2-22 NON-HR COSTS TO €895M, DOWN 2.7% Y/Y (-2.2% Y/Y TO €1.8BN IN H1-22) THANKS TO A SOLID PROACTIVE COST DISCIPLINE. VARIABLE COSTS NOW REACHING 63% OF VARIABLE REVENUES, WITH AN IMPROVEMENTE OF 10 P.P. Y/Y.
- Q2-22 EBIT AT €698M, +62.7% Y/Y (+32.6% Y/Y TO €1.4BN IN H1-22).
- Q2-22 NET PROFIT AT €469M, +44.0% Y/Y (+24.7% Y/Y TO €964M IN H1-22).
- TFAs AT €571BN WITH POSITIVE NET INFLOWS OF €2.7BN IN H1-22. OUR WEALTH MANAGEMENT OFFERS CONTINUES TO MEET THE NEEDS OF OUR LOYAL CUSTOMERS, THANKS TO PRODUCTS NOT SUBJECT TO MARK TO MARKET VOLATILITY REPRESENTING MORE THAN 93% OF TFAs.
- BANCOPOSTA TOTAL CAPITAL RATIO AT 23.7% (OF WHICH CET1 RATIO AT 20.9%), LEVERAGE RATIO AT 2.9% AND POSTE VITA GROUP SOLVENCY II RATIO AT 222%, WELL ABOVE MANAGERIAL AMBITION THROUGH THE CYCLE.
Q2 & H1 2022 Operational Segment Highlights
- Mail, Parcel & Distribution: Medicines’ home delivery service - which can be ‘instant’ (within 90 minutes from purchase), at a scheduled time or the day after the purchase – extended and is now available in over 170 cities; over 30 million vaccines delivered throughout the country.
- Financial Services: Poste Italiane offered its customers the possibility to buy bonds within the seventeenth issuance of ‘BTP Italia’, indexed to Italian inflation with 8-year maturity. “Prestito BancoPosta Business Link Online” was launched in April 2022, in collaboration with Credimi SpA, offering digital loans to individual entrepreneurs and SMEs.
- Insurance Services: ‘Poste Progetto Dinamico Bonus’, a 15-year mixed life insurance product was launched, aimed at combining a performance-linked product with unit-linked insurance investment components; the new “Digital Protection” feature of ‘Poste Vivere Protetti’ was included within the modular offer.
- Payments & Mobile: On June 15, the Group launched a brand-new energy offer initially targeted to its employees and retirees. A simple, transparent and 100% green offer, named ‘Energy 160’ in honour of Poste Italiane’s 160-year history, including the supply of both gas and electricity for households. The initiative has been well received with over 10 thousand contracts signed to date.
POSTE ITALIANE CONTINUES ITS SUSTAINABLE GROWTH PATH, CREATING LONG-TERM VALUE FOR ALL STAKEHOLDERS.
KEY ACHIEVEMENTS IN THE QUARTER:
- “Insieme-24SI”: Three best projects presented by internal teams awarded out of more than 680 ideas since the launch of the initiative in November. The contest ideas inspired by Poste Italiane’s 8 sustainability pillars, aims to engage Company’s employees in the ESG Strategy execution.
- Renewed the security agreement between Poste Italiane and the Italian Police Force: Poste upholds its collaborative relationship which has set forth relevant synergies to strengthen data security and prevent financial crimes keeping pace with the ongoing digital evolution of products and services offered to its clients.
- Financial, postal and digital inclusion and education projects: more than 100 on-line events held since the beginning of the year, as part of Poste’s key initiatives to support social inclusion by staying close to local communities.
- Progressing the green transition: the delivery fleet renewal continued, with the inclusion of about 12,000 new vehicles of which approximately 770 are electric, 6,000 hybrid and the remaining with low emissions. In addition, the number of total electric charging stations installed increased to 2,800 as of 30 June 2022. In terms of energy efficiency, Poste continues its post offices’ restructuring: during the first half of 2022, 410,000 LED lamps were installed, over 450 buildings became part of the Smart Building project and more than 40 photovoltaic panels were installed.
- Strong ESG score for the investment portfolio: BancoPosta Fondi SGR and Poste Vita portfolios recorded ESG and carbon footprint performances stronger than reference benchmarks, confirming the high-quality level of the Group’s sustainability investment strategy.
Rome, 28 July 2022. 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 2022 Financial Results.
Matteo Del Fante, Poste Italiane CEO and General Manager, commented:
“We have once again kicked off the first half of the year very positively, with revenues and profitability rising sharply compared to the same period of 2021 and Group EBIT reaching a record level in the half.
Numbers speak for themselves; performance was strong across the board, consistently above pre-pandemic levels, despite macro-economic uncertainties and headwinds we are facing overall. We are well on track with “24SI Plus” plan execution, further consolidating our leadership as a platform company.
These outstanding results achieved in the quarter allow us to look ahead with optimism to both the rest of the year and our medium-term growth prospects.
Thanks to our diversified, resilient and sustainable business model, we are proactively adapting to the changing macro scenario, steadily progressing on our profitability growth path towards an EBIT result for the current year which we expect to fully meet our “24SI Plus” targets, doubling 2016 EBIT. On the back of such a strong operating track-record, Poste Italiane has been able to remunerate its shareholders with sustainable and competitive dividends, reaching more than 3.6 billion euros for the 2016-2021 period.
Our proven track record in cost management provides us with further flexibility to meet and go beyond our ambitions.
Solid results were delivered in Financial Services thanks to a strong contribution from active portfolio management and recurring higher net interest income (NII), supported by tax credit investments and favourable interest rates.
Payments and Mobile continues its double-digit EBIT growth path thanks to positive results in all business lines.
I am also pleased to share with you that our energy offer for employees is having a successful take up rate of more than 10,000 contracts signed.
We are aware of the challenges ahead and we are ready with a sound industrial model and our historical experience to navigate difficult times. We emerged from the pandemic as a structurally stronger company in all its businesses thanks to our anti-fragile approach, that leads us to deliver under any macro environment, driving sustainable returns for our shareholders.
As always, I am proud of the professionalism, dedication and commitment shown by our people, who work tirelessly to help Italians across the country achieve their goals with a constant focus on innovation.”
Insurance Services are confirmed as a key contributor to Group EBIT, with a resilient life business and a continued increase in P&C.
Mail, Parcel & Distribution was resilient despite the headwinds all postal operators are facing, such as changes in consumer behaviour and reduced consumer spending from inflationary pressures impacting parcel volumes, thanks to lower variable costs and effective cost management initiatives supporting EBIT on a recurring basis. However, we are beginning to see more significant revenues contribution from our diversification approach: thanks to Plurima and similar initiatives, we are accelerating our strategy of becoming a fully-fledged logistic operator.
POSTE ITALIANE Q2 & H1 2022 Results
Thursday 28 July 2022 - 15:00 CEST
To attend click here: Poste Italiane Q2 & H1 2022 Results Webcast
A listen only audio conference is also available: +39 02 8020927
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: email@example.com Mail: firstname.lastname@example.org
To see the press release in full version download pdf