(Alliance News) - Poste Italiane Spa on Wednesday unveiled its new strategic plan 2024-2026, which calls for growth in investments and estimates rising revenues and profits over the plan period.

The dividend is expected to be no less than EUR1.00 from 2026 while revenues are expected at EUR13.5 billion in 2028, with average annual growth of 3 percent.

Operating income is expected at EUR3.2 billion, with CAGR of 4%, and net income is expected at EUR2.3 billion at the end of the plan, with annual growth of 4%.

Invested customer financial assets are expected up to EUR624 billion in 2028 from EUR581 billion in 2023, supported by proactive customer portfolio management and a renewed range of postal savings products as well as specialized coverage of Affluent+ customers exceeding 80%. Capex 2024-2028 will be self-funded by the group by about EUR5.0 billion.

The Net Financial Position in Correspondence, Parcels and Distribution is expected to go from the engative figure of EUR2.8 billion in 2023 to a negative EUR800 million in 2028, with an improvement in underlying cash generation.

The new plan is based on a new business service model that maximizes the value of Poste Italiane's platform, in logistics transformation, and the development of a joint venture in real estate. Again, the SuperApp, which incorporates the new payments wallet, will be fully customized to the individual customer's profile and, thanks to cutting-edge technology and artificial intelligence, will be a single point of access to the Poste Italiane ecosystem, enabling a comprehensive experience that maximizes cross- and up-selling potential.

Technology transformation will be the backbone for sustainable growth to improve customer experience and loyalty, helping to generate value through cross and up-selling initiatives.

Cost rationalization, implemented with a conservative approach and aimed at efficiency, accompanies the transformation strategy, is another focus of the plan.

Also continuing is the group's goal toward carbon neutrality, with decarbonization of the investment portfolio planned by 2050.

CEO, Matteo Del Fante, said, "Thanks to the solid and sustainable generation of cash and capital, we are changing the approach to the dividend policy, revising it upward, with a commitment to achieve a payout ratio of at least 65 percent in plan arc and the goal of distributing at least EUR1.0 per share from 2026 and at least EUR6.5 billion in cumulative dividends in plan arc."

"None of this will be possible without our colleagues, who are true transformational players in the plan, as they have always been. We will continue to deliver sustainable, long-term returns for our shareholders while meeting the needs of broader stakeholders. Poste Italiane is now a solid, reliable and effective strategic pillar for Italy."

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

Comments and questions to redazione@alliancenews.com

Copyright 2024 Alliance News IS Italian Service Ltd. All rights reserved.