del fante

Poste Italiane has presented q2 & h1 2024 financial results.

  • h1-24 group revenues1 at €6.2bn, 7.3% y/y underlying growth (€3.1bn in q1-24, 8.7% y/y underlying growth):

– mail, parcel & distribution external revenues at €1.9bn in     h1-24, 5.7% y/y underlying growth (€1.0bn in q2-24, 6.8% y/y underlying growth).

– financial services revenues at €2.7bn in h1-24, 7.0% y/y underlying growth (€1.4bn in q2-24, 8.6% y/y underlying growth).

– insurance services revenues at €827m in h1-24, +7.1% y/y (€430m in q2-24, +13.4% y/y).

– postepay services revenues1 at €761m in h1-24, +12.7% y/y (€382m in q2-24, +8.5% y/y).

– h1-24 total costs  at €4.7bn, up 6.1% y/y (€2.4bn in q2-24, up 8.6% y/y):

– h1-24 ordinary hr costs  at €2.8bn, up 3.6% y/y (€1.4bn in q2-24, up 4.2% y/y), with ongoing workforce transformation and fully reflecting the newly signed labour contract.

– h1-24 non-hr costs6,  to €2.1bn, up 6.6% y/y (€1.1bn in q2-24, +6.9% y/y) as a result of higher business volumes while embedding inflation impact.

– h1-24 adjusted ebit3 at €1.5 billion, 14.2% y/y underlying growth (€782m in q2-24, 14.2% y/y underlying growth).

– h1-24 net profit at over €1.0bn, 14.3% y/y underlying growth (€525m in q2-24, 12.9% y/y underlying growth).

– group client tfas reached €589bn, up €8bn from december 2023.

– strong capital position: bancoposta total capital ratio at 23.8% (of which cet1 ratio at 20.3%), leverage ratio at 3.3% and poste vita group solvency ii ratio  at 297%.

 

Matteo Del Fante, Poste Italiane Chief Executive Officer commented: “Our anti-fragile, phygital business model designed for sustainability has proven itself again with these excellent results. Year-to-date performance continues to be strong in all segments with a further acceleration of positive trends in Q2-24. As always, we remain focused on continuing to deliver, with discipline, as we progress on the execution of the Connecting Platform business plan.

In the first half of 2024, revenues are at over €6.1 billion, up 7% on an Underlying basis excluding the contribution of sennder capital gain and Active Portfolio Management.

Adjusted EBIT in the half, net of estimates related to the insurance guarantee fund, is at €1.5 billion and up 14% on an Underlying basis, with net profit at just over €1 billion.

Our people play an important role and I am very pleased to announce the renewal of a mutually beneficial national labour contract, covering the four-year period from 2024 to 2027, which was finalized in record time and signed last week. On behalf of our Chairwoman Silvia Maria Rovere and General Manager Giuseppe Lasco, I’d like to thank everyone involved in this process, in particular the Labour Unions, for their extremely constructive approach.

The agreement represents a key milestone, as it is crucial in implementing both our logistics business transformation and the new commercial service model for financial services in the Post Offices, providing full visibility on our cost base evolution over the plan.

In Mail, Parcel and Distribution, parcel revenues driven by double-digit volume growth, where we are gaining market shares in all customer segments, while mail revenues benefit from a favourable mix and effective repricing actions.

In Financial Services, revenues were up 9% in the quarter and 7% in the first half on an Underlying basis, driven by record NII since listing and positive commercial trends across products.

In Insurance Services, profitability is improving supported by a resilient Life Investments & Pension along with a fast-growing Protection business.

Postepay Services continues to deliver double-digit growth in the half, thanks to increased card and digital payments and our leadership in e-commerce transactions; the successful energy business is contributing to revenue growth.

The strong first half results, coupled with increased visibility on cost base evolution, support upgrading full-year 2024 Adjusted EBIT guidance to €2.8 billion.

Finally, I want to thank our dedicated employees, whose hard work, commitment and professionalism are key to the strong results we continue to achieve.”

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Note: Underlying growth calculated excluding the impact of sennder Capital Gain (“CG”), Active Portfolio Management (“APM”) and systemic charges estimate related to insurance guarantee fund. sennder CG equal to €109m in Q2-23 and H1-23. APM impact on Revenues equal to €0m in Q2-23 and €168m in H1-23, €(6m) in Q2-24 and €16m in H1-24. Systemic charges estimate related to insurance guarantee fund equal to €37m in H1-24 and to €74m for FY-24.