Poste Italiane: for the first time, parcel revenues increase have more than offset mail revenue decline

Poste Italiane has reported its fourth quarter results, with a robust net profit of €1.2 billion.

Highlights

• Q4-20 revenues up 1.4% to €3.0 billion
• Q 4-20 strong operating profit, up 19.6%, reaching €280 million, with positive contributions from all segments
• Over 210 million parcel volumes, more than doubling since 2016
• Q 4-20 continued parcel revenue growth for the first time more than offsetting mail decline
• postal savings lowest outflows since 2012
• Q4-20 payments and mobile revenues up 15.2% y/y
• one-third of total transactions now on digital channels and third-party network
•  Q4-20 revenues at €3.0bn, +1.4% y/y (-4.0% fy/fy to €10.5bn in fy-20) posting tangible recovery signs:
•  Q4-20 mail, parcel & distribution revenues at €950m, +1.4% y/y (-8.3% fy/fy at
• €3.2bn in fy-20) with record high parcel revenue growth fully offsetting mail decline;
•  Q4-20 payments & mobile revenues at €215m, +15.2% y/y (+11.1% fy/fy at €737 million
• in fy-20) with accelerated card and digital payments and resilient telco revenues;
•  Q4-20 financial services revenues at €1.3bn, -0.1% y/y (-3.7% fy/fy at €4.9bn in fy-20) supported by strong net inflows;

Matteo Del Fante, Poste Italiane Chief Executive Officer and General Manager, commented: “Poste Italiane reported solid results in the fourth quarter, with all segments contributing to positive operating profitability progression, setting stable foundations for future growth in all our businesses. Parcel volumes at over 210 million have more than doubled since 2016 and for the first time, parcel revenues increase have more than offset mail revenue decline, confirming parcels as a strategic pillar for the sustainability of the logistics business going forward. Our renewed focus on postal savings also allowed us to achieve a record result, with the lowest net outflows since 2012. During this challenging year we fully benefited from our diversified business model and further strengthened the trust from our customers thanks to the hard work and dedication of our employees. Despite the first, harshest lockdown severely affecting operations for a quarter of the year, the resilience of operations in 2020 led to a net profit of 1.2 billion euro. As a result, our intention is to propose a 0.486 euro dividend, with a 5 percent increase year on year. €1.2bn

We provided unremitting support to our communities, by distributing vaccines and PPEs, by ensuring new ways for our customers to safely carry out their day-to-day transactions,
leveraging our state-of-the-art IT platform to provide new services.

Continuing to contribute to a steady recovery from the pandemic remains a priority for us, alongside maintaining financial integrity and keeping our customers and colleagues safe.
We have achieved strong results, while advancing on our strategic priorities. We have streamlined our consumer business and embraced the shift to digital in order to serve our
clients the way they want to be served. Now, more than ever, Poste Italiane is seen by Italians as the go-to institution. We are ready to face the future, leveraging on the strengths of our business supported by our strategic vision, which has already been proven correct in anticipating key emerging trends.”