Poste Italiane has released its financial results for the first quarter of 2020.
- Lower revenues : € 2,755 million (-3% compared to the first quarter of 2019); normalized revenues 1 of € 2,456 million (-4.4% compared to the first quarter of 2019)
- Operating expenses Total : € 2.315 billion (+ 4% compared to the first quarter of 2019) with an increase of the Non-HR costs, in January and February, for more business activity and costs one-off of € 23 million in March to facing the emergency
- Operating result (EBIT) : € 441 million (-28.6% compared to the first quarter of 2019) determined by lower revenues due to the lockdown and one-off costs to cope with the emergency
- The Total Financial Assets (TFAs) amounted to € 539 billion (+ € 2.6 billion compared to December 2019), with a solid retail net inflow of € 5.7 billion, driven by monetary funds in a volatile market
- Solid regulatory capital ratios : BancoPosta’s CET1 Ratio of 18.0% and Poste Vita Insurance Group Solvency II Ratio of 226%, above managerial ambitions of 200% throughout the plan period
- Solid liquidity position and cash generation , with a limited and balanced debt profile over maturities
Economic performance of the sectors in the first quarter of 2020
- Correspondence, parcels and distribution : growth in parcel revenues, with volumes that reached peaks normally recorded on Black Friday and during the Christmas period. The contribution of flows from China has doubled
- Payments and mobile : the integrated strategy between telco services and payments is in line with the growth in the use of digital channels and at the same time takes advantage of the synergies between the various segments
- Financial services : renewed commercial initiatives to adapt the service model to the “new normal”, also thanks to remote consultancy
- Insurance services : positive quarterly performance that benefited from the strong commercial attention dedicated to multi-branch products in 2019 and from the growth in the Non-Life business opportunities through the new modular offer
Matteo Del Fante, CEO and General Manager of Poste Italiane, commented: ” In extraordinary periods like this, my thoughts go to the communities and people affected by COVID-19. Thanks to the commitment and sense of duty shown by our employees, Poste Italiane quickly adjusted its operations, to guarantee essential services to our customers and provide the widest support to the country, in line with its role as a strategic backbone for Italy.
“Although the performance of 2020 was impacted by the lockdown, recent events have accelerated key emerging trends and confirmed the strategic direction of the Deliver 2022 Plan. Poste Italiane has faced the crisis with a robust financial profile, with a solid balance sheet and strong capacity to generate liquidity thanks to our profitable business.
“During this unprecedented situation, we protected our employees, sanitised corporate buildings and fleets, provided personal protective equipment and reduced physical presence in post offices, sorting and distribution centers. Agile work has been activated for most of the headquarters staff, reaping the benefits of our past IT investments.
“Our loyal customers continued to benefit from uninterrupted services. We have taken important measures to protect them, taking advantage of our exclusive multichannel distribution model, consisting of post offices, third party networks and our digital platform.”In this way, we continue to involve customers in different but complementary ways in all the segments in which we operate. We have supported our communities, also with dedicated social initiatives, by collaborating with institutions. Throughout its history, Poste Italiane has always been present for its customers and for the community. During this crisis, we continued to support all our stakeholders, strengthening our reputation. Poste is a system operator; our role has become more important and this will translate into a stronger and more sustainable business. Together, we will be up to the challenge. “