Royal Mail has warned that revenue in its UK parcels business was lower than it anticipated in the last three months due to competition in the market for deliveries.
In an interim statement for investors published today, the newly privatised Royal Mail said that while UK parcel volumes rose 1% in the three months ending 29 June, revenue in the division had fallen by 1%.
It singled out lower export parcel volumes – a result of a strong British Pound and increased competition – and Amazon’s expansion of its own delivery network (Amazon Logistics) as reasons for the fall.
Chief executive Moya Greene (pictured right) said: “"In the first three months of our financial year we have delivered low single digit revenue growth in line with our strategy. Trading has been characterised by a good performance in letters, with the decline in addressed letter volumes better than our expected range, but a weaker than expected performance in UK parcels, largely driven by the intensifying competitive environment in the account, consumer/SME and export channels.”
Results for the half year ending 28 September are expected to be announced on Wednesday 19 November.
