Growth in parcels revenue failed to offset the continuing decline in letter volumes in the first nine months of its financial year, Royal Mail said today. While parcel volumes and revenue were both up 6% in the nine months ended 23 December, with the firm citing a strong performance during the Christmas period, addressed letter volumes were 8% lower and letters revenue 6% down year-on-year. It meant the operator’s core UKPIL revenue was down 1% in the period, although group […]
Royal Mail is increasing prices for some of its mail contracts to help offset the impact of the decline in mail volumes and generate cost savings.
Royal Mail’s profit warning has been met with shock by analysts who have warned that the group faces relegation from the FTSE 100 if it cannot tackle its productivity problem.
Royal Mail is considering applying a fuel surcharge to some of its contract parcels and mail services, while rival carrier UK Mail has reduced parcel prices for SMEs.