- Record Revenue Growth Group revenues reached €6.5 billion, up 5% year-over-year, driven by strong performance across all business units.
- Improved Profitability EBIT grew 12% to over €1.7 billion and net profit rose 14% to €1.2 billion, reflecting operational efficiency.
- Strong Financial Position The company maintains a solid balance sheet with a Solvency II ratio well above 300%, ensuring financial stability.
- Increased Guidance Full-year 2025 EBIT guidance was raised to €3.2 billion and net profit to €2.2 billion, driven by strong performance.
- Growth Across Segments Insurance Services revenues rose 10%, Mail & Parcel saw 1% growth, and Postepay revenues increased 5%, highlighting diversified growth.
Segment Performance: Diversified Growth Across Businesses
The Mail, Parcel & Distribution segment saw a 1% revenue increase in the first half, supported by parcel volume growth, which offset declining mail volumes. Repricing initiatives helped mitigate the impact of lower mail volumes. Financial Services revenues rose 7%, driven by record net interest income and strong commercial performance. Insurance Services delivered a standout performance, with revenues up 10%, fueled by growth in the Life and Protection segments. Postepay Services also contributed positively, with a 5% revenue increase, driven by payment revenues and an expanding customer base.
Cost Discipline and Strategic Investments
Despite a workforce expansion to nearly 120,000 employees, HR costs rose only 2% to €47,800 per full-time equivalent (FTE). Non-HR costs increased by €120 million, primarily due to variable cost of goods sold (COGS) and investments in transformation initiatives. The company emphasized its commitment to cost and capital expenditure discipline, ensuring that growth is balanced with profitability.
Valuation and Outlook
Poste Italiane's strong results and increased guidance suggest a positive outlook for investors. The stock currently trades at a P/E ratio of 11.47 and a P/B ratio of 1.99, indicating a reasonable valuation given its solid profitability and dividend yield of 5.83%. The company's focus on diversification, cost control, and strategic investments positions it well to continue delivering value to shareholders.
Management Insights and Future Opportunities
CEO Matteo Del Fante highlighted the company's platform strategy, which integrates physical and digital channels, as a key driver of market share gains. The unique Poste Italiane app has already reached 9 million users and is expected to grow to 15-16 million by mid-October 2025. CFO Camillo Greco emphasized the strong performance of the Protection business, which is on track to exceed €1 billion in premium revenues, potentially reaching €1.5 billion. The company also sees room for slight leverage increases and stable investment portfolio returns, reinforcing its financial stability.