MILAN, Feb 29 (Reuters) - Poste Italiane reported on Thursday a larger than expect 60% increase in fourth-quarter operating profit on a 4% rise in revenues, and said it would increase dividend payments by a fifth.

Earnings before interest and tax came in at 515 million euros ($558 million) in the three months through December, above a 504 million euro forecast in an analyst consensus compiled by the company.

Revenues, from services that range from insurance to payments in addition to the traditional mail and parcel business, totalled 3.19 billion euros in the fourth quarter, versus a 3.13 billion analyst average forecast.

Poste said it would pay 1 billion euros in cash dividends, a 23% increase over 2022. ($1 = 0.9230 euros) (Reporting by Valentina Za; Editing by Kim Coghill)