Italy's Poste tops second quarter profit forecasts despite higher costs (updated)

Telecom Italia

24/07/2026 10:13

Adds analyst comments in bullet points 6-7
MILAN, July 24 (Reuters) - Italian financial conglomerate Poste Italiane PST.MI, whose cash-and-share offer to buy former phone monopoly Telecom Italia TLIT.MI started on Monday, said it would present a strategic plan for the combined entity early next year.
Poste reported an adjusted operating profit of €868 million ($988 million) for the second quarter, little changed from a year earlier and above an €841 million forecast in an analyst consensus compiled by the company.
Revenues rose 4% year-on-year in the three months through June to €3.4 billion, just ahead of the average analyst forecast of €3.3 billion.
Revenue at Poste's mail and parcel business rose 7% in the period, broadly in line with the forecast.
Insurance services revenue was up 11% in April to June, ahead of expectations.
Financial services revenue declined 1.6% year-on-year to €1.4 billion, in line with analyst forecasts.
Jefferies analysts said "the largest driver of the beat was the insurance division followed by the payments division."
The mail and parcel division disappointed, but mainly on a negative contribution from Telecom Italia, in which Poste currently has a 20% stake, analysts said.
Poste said costs were up 3.4% year-on-year in the second quarter to €2.8 billion, driven by a business expansion push. The average analyst forecast was €2.5 billion.
     
($1 = 0.8787 euros)

(Reporting by Valentina Za, Editing by Giulia Segreti and Kate Mayberry)
((valentina.za@thomsonreuters.com; +39 02 6612 9526;))