Poste Italiane (PST) Q3 2024 earnings summary

Executive summary

• Record nine-month 2024 revenues of €9.2 billion, up 8% underlying, with all business units contributing to growth and the best-ever nine-month results.

• Adjusted EBIT reached €2.3 billion for 9M (+18% underlying), net profit at €1.6 billion (+19% underlying), both marking record highs.

• Interim dividend of €0.33 per share (€427 million), up 39% year-over-year, to be paid in November 2024.

• Strong performance supported by disciplined cost management, positive commercial trends, and robust cash generation.

• Continued positive net flows in investment and insurance products, with strategic initiatives in logistics, digital payments, and ESG.

Financial highlights

• 9M-24 revenues: €9.2 billion (+5% year-over-year, +8% underlying); Q3-24 revenues: €3.1 billion (+10% year-over-year).

• Adjusted EBIT for 9M: €2.3 billion (+18% underlying); Q3: €789 million (+46% year-over-year).

• Net profit for 9M: €1.6 billion (+19% underlying); Q3: €569 million (+49% year-over-year).

• Total costs for 9M: €7.0 billion (+4% year-over-year); HR costs at €4.1 billion (+3%), non-HR costs at €3.2 billion (+7%).

• Group client TFAs reached €593 billion, up €12 billion from December 2023, with €3.9 billion positive net flows in investment products.

Outlook and guidance

• Upgraded full-year 2024 guidance: adjusted EBIT of €2.8 billion and net profit of €2.0 billion.

• Cost discipline and strong commercial trends expected to continue across all segments.

• NII expected to remain resilient in 2025, with cost increases already factored into the plan.

• Strategic plan focuses on platform model, logistics transformation, and omni-channel engagement.

• Italian GDP expected to grow moderately, with risks from international conflicts and commodity markets.