Parcels outweigh letters
Royal Mail continues drive on costs as revenue comes in flat
Parcel revenue was up 2% in the last quarter as a result of the pricing environment which Royal Mail says “remains very competitive in all the major segments”, in particular Parcelforce Worldwide and export parcels.
Addressed letter volumes fell 5% (excluding the impact of election mailings) while total letter revenue was down 4%.
The group said it benefitted from election mailings revenue but has seen some evidence of downtrading which has partially offset the impact of letter price increases which came into effect in January and March.
Moya Greene, chief executive, said: “In the first three months of our financial year we have seen a continuation of the overall market trends we saw last year.
“We have benefitted from the parcel initiatives that took effect in the second half of last year and a good performance from GLS. Our trading environment remains challenging and we are stepping up the pace of change to drive efficiency, growth and innovation, while maintaining a tight focus on costs.“
The company said the outlook for letter and parcel trends and other guidance remain unchanged from that set out in its Financial Report for the year ended 29 March.
The results for the half year ending 27 September are expected to be announced on 19 November.