Increased revenues and profitability for Poste Italiane in the first six months of 2023, with the numbers for the second half alone higher than analysts' expectations. “We are pleased to announce another series of high-growth results. Once again, we delivered a solid quarterly performance and closed the first half of the year very positively, with substantial growth in revenues and profitability compared to the same period in 2022. Group operating income increased by 11% to 1,6 billion euros and marked a new record in the first half of the year, reflecting our continued success and robust performance across all of our business sectors,” he commented the managing director, Andrea Del Fante.
Poste Italiane: first half results
Poste Italiane closed the first six months of 2023 with revenues equal to 6,05 billion euro, an increase of 8,3% compared to the 5,59 billion realized in the same period of the previous year. He hit a new record on Operating income, which rose from 1,42 billion to 1,57 billion euros (+10,6%). L'Net income on the other hand, it stood at 1,14 billion euro, up on the 985 million booked in the first six months of 2022 (+15,7%), while the total costs amounted to 4,5 billion (+8%).
Poste Italiane: results for the second quarter
In the second quarter of 2023 i revenues reached 3 billion euros, up 8,5% on an annual basis, compared to 2,8 billion in the second quarter of 2022., while l'Ebit increased by 9,9% to 799 million, +9,9%. L'Net income it settled at 601 million, up by 22,1%. The quarterly results beat analysts' consensus, which indicated revenues and net income at 2,9 billion and 474 million euros, respectively.
I total costs amounted to 2,2 billion, +8%. “We continue to follow – said Del Fante – one strict discipline of costsi, which allows us to mitigate inflationary pressures, improve operating profit growth and achieve great confidence in the visibility of our 2023 guidance”.
Solid equity, positive net financial position: Poste Italiane is working on the new plan
The company confirms one asset position solid: Total capital ratio of Bancoposta equal to 23,5% (of which Cet1 ratio equal to 20%), Leverage ratio equal to 3,2% and Solvency II ratio of the Poste Vita insurance group equal to 274%.
At the end of June 2023 the net financial position was positive for 2,53 billion euro, compared to 1,01 billion at the beginning of the year. Also at the end of June, Total Financial Assets amounted to 580 billion euro, driven by a positive market effect of 4,5 billion.
“Our balance sheet remains solid, with a net financial position that improves year on year and balance capital ratios, which for the future offer us flexibility on the remuneration of our shareholders – added the CEO – We are working on our new strategic plan, which we will present in the coming months, in order to have all the growth drivers for the years to come. There will be a focus on restructuring of our logistics business and on the renewal of our service model, putting the customer first".
From Correspondence to Payments: the revenues of the individual sectors
In the second quarter, the industry revenue Mail, Parcels and Distribution grew by 10,9%, reaching 1 billion (+5% to 1,9 billion in the first half), while those in the segment Financial services they increased by 4,8% to 1,3 billion (+6,4% to 2,7 billion in the first half). Revenue boom Payments and Mobile segment they grew by 49,4% to 374 million in the three months April-June and by 48,8% to 717 million in the six months January-June, thanks to the key role of PostePay and the consolidation of LIS which generated additional revenues of 70,2 million in the second quarter.
Revenues down insurance sector, decreased 10,5% year-on-year to $379 million in the second quarter and 3% to $772 in the first half. The unfavorable comparison, explains the note, is due to the contribution recorded in the second quarter of 2022 on a non-recurring basis and deriving from the specific dynamics of interest rates. In this context, net inflows in the second quarter in the life insurance sector amounted to €1,1 billion (-20,7% on an annual basis compared to the first quarter of 2022), in a market showing a negative trend. Total gross premiums reached €4,6 billion in the second quarter, up 6,1% on the previous year's level of €4,3 billion (+14,7% on an annual basis, equal to €10,8 billion in first half of 2023). The flows of Poste Italiane's insurance services "are extremely positive especially when compared with the rest of the market", noted Del Fante, who in answering analysts' questions also referred to Eurolife: "There are five insurance companies and, perhaps, the discussion is to enlarge this group, at the moment, which will take the insurance portfolios from the old Eurovita and manage the respective portfolio moving forward with the support of the distributing banks that are in play".
The banks, continued the manager, "will provide loans and liquidity to each individual insurance company that becomes the manager and owner of those liabilities of those insurance contracts and also pro rata owner of the assets" A newco was set up to save Eurovita of five companies (Intesa Sanpaolo, Poste Vita, Generali, Unipol and Allianz Italia) which will have to take over the company's portfolio. The objective, illustrated by Ivass to the consumer associations, is to start up the new company by the end of July, and then immediately proceed with Inter for the authorization request.
(Last update: 15.31 on 25 July).
