A record number of parcel deliveries was not enough to halt a sharp fall in profits at Royal Mail in the first six months of its financial year as letter volumes continued to decline.
Pre-tax profits fell 87 per cent to £18 million, down from £146 million, despite a 9.8 per cent rise in revenue to £5.67 billion driven by strong parcel growth. Royal Mail letters business had a 20.5 per cent decline in revenue. Parcel revenue was up 33.2 per cent.
Keith Williams, interim executive chairman, said: “The growth in online shopping and parcels during the pandemic, combined with our increased focus on delivering more of what customers want, has led to revenue growth of nearly 10 per cent for the group in the first half.”