Post office, record accounts thanks to parcels and financial services: profit of 1.1 billion

Diversification seems to be working and translates to increased profitability. Poste Italiane’s first half results show growth in all major areas of activity of the group, led by Matthew Del Fante, which records the mid-year point with revenues of €3 billion (+8% yoy) and a net profit of €1.1 billion (+16%). A significant contribution to accounts performance came from financial services, with a 25% profit increase supported by growth in postal savings collection, collection and payment services, and savings management. The total amount of financing in the first half of the year amounted to 580 billion euros, an increase of 4 billion over December 2022.

Parcel and payment services

Also accounts approved by the Board of Directors, chaired by Silvia Maria Rovere, are postal, parcel and distribution services, which grew in terms of net profit by 118% also thanks to a capital gain of €108 million resulting from a stake increase in German shipping company Sender Tech. In terms of insurance services, revenue shows a decline of 10% in line with expectations, but the six-month period recorded a recovery in premium income in both the life and non-life segments. Insurance services flows are very positive, especially when compared to the rest of the market, specific to Del Fante. Payments and mobile services activities are keeping pace with a jump in revenue (+37%) and net profit (18.9%). Growth comes from digital card payments (+31.5% in the first half of the year). For the post, the first part of the year was also marked by the new supply related to the supply of light gas, with revenues of 26 million and 300 thousand contracts signed.

Forecasting

A comprehensive picture that allows Del Fante, recently reconfirmed at the helm of the company, to claim record results that exceed expectations. He says in response to the financial analysts, we’re on pace and maybe a little bit ahead with the guidance. We continue to pursue a robust cost discipline, allowing us to mitigate inflationary pressures, improve operating profit growth and build strong confidence in the vision of our guidance for 2023. Del Fante explains (watch the director’s speech video). The second six months to Poste’s first number is evidence of solid performance across all of our business segments. This semi-annual was an opportunity to take stock and look at where we started: We picked specific areas of the market where we saw growth and positioned ourselves, he asserts, adding that market and time proved right, and our strategic choices were right. Now we have another three years ahead, we have already worked intensively for two months on the next plan, which will be the second phase of the Deliver 2022 plan, presented in 2018.