Poste Italiane predicts higher profits and dividends until 2024
MILAN (Reuters) – Poste Italiane expects its operating profit to reach 2.2 billion euros ($2.63 billion) by 2024, up from 1.5 billion euros a year last, thanks to cost reductions and increased revenues.
In its 2019-2024 business plan announced on Friday, the state-controlled conglomerate – which includes financial operations including insurance and digital payments as well as its traditional mail and parcels business – forecast a net profit of 1 .6 billion euros in 2024, compared to 1.2 billion. euros last year.
Its revenue target for 2024 is 12.7 billion euros, compared to 10.5 billion euros last year.
The company has also pledged to increase dividend payments by 6% per year until 2024, from a floor of 0.55 euros to be paid on 2021 results, up 14% from 2020. .
Poste Italiane said its mail and parcels division would become a “profitable logistics player” by 2025, when revenues from parcel operations exceed general mail.
“The recovery of mail and parcels is underway (…) we will become a full-fledged logistics player with a sustainable business,” chief executive Matteo Del Fante said in a statement.
The smaller payments and mobile phone division is expected to more than double its revenue by 2024, helped by value-added services such as energy products that will be offered in early 2022, the group said.
The group also expects increased demand for its insurance services, supported by health and property protection after the COVID-19 pandemic.
Its financial services division, however, is expected to record a decline in operating profit in 2024, reflecting higher costs.
(Reporting by Elisa Anzolin; Editing by Valentina Za and David Goodman)