Poste Italiane has reported that it has met all its financial targets for 2018 including better than expected mail performance.
Group revenues were up 2.2% at €10,864 million in FY18, with recurring revenue growth and reduced reliance on capital gains.
All segments contributed to improved operating profit and the company’s 2022 strategic plan is on track.
Total operating costs were down 1.5% fy/fy to €9,366 million and for Mail, Parcel & Distribution: revenues were €3,580 million (-1.4% y/y) and EBIT at – €430 million (+16.7% y/y) as a result of B2C parcel growth and better than expected mail performance, supported by successful implementation of Joint Delivery Model and continuing network transformation.
Commenting on the results, Matteo Del Fante, Poste Italiane Chief Executive Officer and General Manager, said: “Poste Italiane met all 2018 financial targets both at group and segment level thanks to a strong progression of underlying operating profit, driven by steady revenue growth, reduced reliance on capital gains and cost discipline.
Our performance in 2018 demonstrates improved operating leverage, where increased revenues supported by cost efficiencies translated into EBIT progression.
The strong balance sheet, with limited leverage created the same positive impact at the net profit level. These results have been driven by our ongoing business transformation plan Deliver 2022 that will allow Poste Italiane to capitalise on market growth opportunities.
This includes the transformation of our core Mail and Parcel business to capitalise on the rapid development of e-commerce, the expansion of our financial and insurance product offer across our unrivalled Postal Offices network, as well as continued opportunities arising from convergence in digital payments and mobile telecommunications.
In 2019 you will see a continuing improvement of our revenues, margins and profitability.
Our plan is made of many small steps and we intend to consistently deliver on a quarter by quarter basis. We are pleased with progress in the first year and remain focused on delivery given the significant operational transformation still underway.”