Royal Mail shares drop 13 per cent

Royal Mail has cut the upper range of their profit guidance, Tuesday morning, people in the UK sent 7% to 8% less letters in 2018.

Royal Mail’s forecast for 2019 and 2020 is looking worse, business confidence is down due to Brexit and the modern trend for “e-substitution.”

Rico Back, chief executive of Royal Mail said, “Due to our letters performance to date, we expect addressed letter volume declines, excluding elections, to be in the range of seven to eight per cent for 2018-19.

“While the rate of e-substitution remains in line with our expectations, business uncertainty is impacting letter volumes.

“As a result, addressed letter volume declines, excluding elections, are likely to be outside our forecast medium-term range next year. Otherwise, we are reconfirming the outlook and other guidance for 2018-19 provided in our half year results.”