Poste Italiane sees profit grow in 2009
Poste Italiane described its performance as “positive” as it announced net profit was up 2.4% to €904m for 2009. The Group’s consolidated financial statements and the Parent Company’s separate financial statements for the year ended 31 December 2009, both prepared under IFRS, have been approved by a meeting of Poste Italiane’s Board of Directors, chaired by Giovanni Ialongo.
The Group led by Massimo Sarmi reports net profit up 2.4% to €904m (€882.6m in 2008) and operating profit up to €1.6bn (€1.5bn in 2008). Total revenue is up 12.6% to €20.1bn, with Insurance Services performing particularly well, having recorded growth of 29% on the previous year.
Financial services also built on previous gains, registering growth of 8%. The net inflow into postal savings products was of great significance, with an additional €5.5bn invested in postal savings certificates and deposited in postal savings books. This performance underlines savers’ confidence in Poste Italiane, even during a year marked by the global financial crisis.
Postal Services saw a reduction of 5% due to a decline in volumes. This is a feature of all the developed economies and reflects increasing use of the internet. Poste Italiane is responding to the ongoing reduction in mail with the launch of innovative services. By exploiting digital technology and guaranteeing maximum security, the new services are able to keep pace with developments in consumer behaviour and meet the changing needs of customers, who are increasingly interested in the use of digital products.
“2009,” declared CEO, Massimo Sarmi, “again saw an improvement in net profit. This is an excellent result, achieved in a year of economic and financial crisis, which also accelerated the decline in the volume of postal services. This eighth successive year in profit,” added Sarmi, “allows Poste Italiane to face up to full liberalisation of the postal market with confidence. We are well-placed to respond to the new competition, thanks to the competitive advantage represented by our experience in successfully launching innovative, high-technology services”.
The strength and breadth of the Group’s commercial offering, associated with the Poste Italiane brand and reputation, have driven the results in the insurance segment, the company said. Poste Vita reports record revenue in 2009, placing it among Italy’s leading insurance companies. Premiums written amounted to €7.1bn, compared with €5.5bn in 2008 (up 28.4%). The segment’s growth will receive further impetus with the launch of Poste Assicura, the company created in readiness for the Group’s entry into the non-life insurance market.
Financial Services continued to make a positive contribution to revenue growth, thanks to products that successfully meet customers’ needs. The number of current accounts is up 2.7% to 5.5m, whilst Postepay cards are up 22.8% to 5.6m, with the market responding positively to the new Postepay Twin product, a “sister” card enabling customers to easily and securely transfer funds from one card to another. In terms of telecommunications, 2009 saw Poste Mobile reinforce its presence in the mobile market, with the number of SIM cards sold rising from 671,000 to 1.3m (at the end of 2009), in part thanks to the subsidiary’s entry into the business segment.
