Poste Italiane: We are the engine of change

Poste Italiane has announced its first quarter of 2021 results, revealing a solid financial performance and record parcels growth.
Financial highlights

• REVENUES FROM CORRESPONDENCE, PARCELS AND DISTRIBUTION OF € 917 MILLION, + 18.9% Y / Y, WITH RECORD GROWTH IN B2C PARCEL VOLUMES;
• REVENUES FROM FINANCIAL SERVICES EQUAL TO € 1.3 BILLION, -3.8% Y / Y: DAILY GROSS DEPOSITS IN INVESTMENT PRODUCTS INCREASING AND HIGHER THAN PRE-PANDEMIC LEVELS;
• REVENUES FROM INSURANCE SERVICES OF € 496 MILLION, + 40% Y / Y: TOTAL GROSS PREMIUMS OF € 5.7 BILLION, HALF GENERATED BY MULTIPLE PRODUCTS;
• REVENUES FROM PAYMENTS AND MOBILE EQUAL TO € 192 MILLION, + 16.5% Y / Y: DOUBLE DIGIT GROWTH SUPPORTED BY PAYMENTS BY CARD
• TOTAL COSTS IN THE FIRST QUARTER OF 2021 EQUAL TO € 2.3 BILLION, UP 3.7%, BALANCING THE RATIONALIZATION OF COSTS AND SUPPORT FOR BUSINESS GROWTH. PERSONNEL COSTS DOWN DUE TO A LOWER NUMBER OF FTEs; GROWTH IN VARIABLE COSTS ENTIRELY SUPPORTING GROWTH IN BUSINESS VOLUMES.
• OPERATING RESULT (EBIT) FOR THE FIRST QUARTER OF 2021 EQUAL TO € 620 MILLION, + 40.8% Y / Y, SUPPORTED BY INSURANCE PRODUCTS, BY THE GROWTH OF PARCELS AND BY CARD PAYMENTS.
• NET PROFIT FOR THE FIRST QUARTER OF 2021 EQUAL TO € 447 MILLION, + 46% Y / Y, WITH A DIVERSIFIED STRATEGY THAT CONTINUES TO PRODUCE RESULTS.
• TOTAL FINANCIAL ASSETS (TFAs) EQUAL TO € 572 BILLION, INCREASING THANKS TO NET INCOME OF € 2.7 BILLION AND DRIVEN BY LIFE INSURANCE PRODUCTS.

Main operating trends of the segments in the first quarter of 2021

• Mail, parcel and distribution : Impressive growth in parcel volumes across the entire product range (B2C + 88%; B2B + 45% and C2X + 41%), with parcel revenues at a record level of € 368 million (+74 , 5% Y / A). New automatic parcel sorting center (daily capacity of 270,000 units), now operational in Northern Italy. The joint venture with Sengi also contributes to the diversification of the customer base with growing international volumes (7 million packages in the quarter). The integration with Nexive is in progress, with the start of the reorganization.
• Financial services : the new “model based on customer needs” launched in the sales network channels to support financial advisors. Success in purchasing tax credits, which helps to increase the retail and business customer base , and provides an additional boost to potential cross selling . New digital and automated offer for postal savings distribution, to support greater penetration of our financial product offering on digital channels.
• Insurance services : the multi-branch insurance products of the Life sector continue to be successful and now represent half of the gross written premiums; growth in the non-life sector thanks to the modular offer, which provides flexible and customized solutions for the protection needs of our customers.
• Payments and mobile : 51% increase in e-commerce transactions to support the digital strategy, which follows the evolution of our customers’ spending habits; pilot project on broadband successfully launched for employees, in view of the extension of the offer to all customers, scheduled for the end of May, with the aim of capturing growth in the Italian broadband market; new contract signed with Vodafone, which will allow the reduction of traffic costs in telco services starting from the second half of the year.

Matteo Del Fante, Chief Executive Officer and General Manager of Poste Italiane, commented:
“We have decisively launched the execution of the new strategic plan” 2024 Sustain & Innovate “. By seizing business opportunities and riding the improved economic outlook, we achieved solid financial performance already in the first quarter.
The strong increase in parcel revenues, achieved thanks to the doubling of B2C volumes, the continuous growth of card payments and the constant development of our insurance business reinforce our determination to successfully implement the new strategic plan.
The results are particularly positive if we take into account that during the quarter various Italian regions were subjected to partial lockdown measures.
We have adapted and continue to evolve in a changing world, while providing all our services with constant attention to the preferences and needs of our customers.
I am satisfied with the results achieved in terms of revenues and costs; we are now focused on our growing role as a strategic pillar in support of Italy, thanks to our omnichannel presence and our extraordinary people.
Since the early days of last year’s pandemic, our diversified business has demonstrated the resilience that is essential to ensure the financial integrity of Poste Italiane. We are always at the side of our customers, colleagues and communities when needed; at the same time, we deliver impressive results every quarter for our shareholders. At this stage of the pandemic, we continue to be a key player to support the economic recovery.
I am also particularly proud of our collaboration with the Italian Army as part of the national vaccine administration plan: a potential basin of 37% of the population will be vaccinated thanks to the doses booked on our Cloud platform and delivered by Poste Italiane.
As we continue to advance towards our strategic goals, growing in key areas and accelerating our digital transformation, we are also aware that our success is not only measured by financial performance, but also by how we act responsibly in the service of the country. .
We are the engine of change and with the capillarity of our physical network we will facilitate the digital transition of Italy, also through our involvement in the National Recovery and Resilience Plan. Now, more than ever, we are in the best position to support the economy, playing a key role in society to build long-term value and generate sustainable returns for our shareholders. “