Royal Mail half-year profits have dipped 21%, forcing the company to halve the expected growth rate of its UK parcels market to between 1% and 2%.
Royal Mail, that was privatised last year, blamed Amazon for the dismal growth of its parcel market.
Operating profit for the six months to September 28 fell to ยฃ279m while overall revenue rose 2%. Operating profits were lowered by higher pension costs and the absence of a VAT refund received a year ago.
Royal Mailโs parcel volumes rose 2% but revenues fell by 1%. Letter volumes too dropped 3% but revenues rose 1%.
Royal Mail chief executive Moya Greene said: โThe UK parcels market remains challenging. As the pre-eminent UK parcels delivery company, we are targeting a number of new, growing areas, and delivered 2% volume growth in a competitive market.
โWe had a better than expected performance in UK letters. GLS, our European parcels business, demonstrated a strong performance with better than expected volumes in domestic and export parcels.โ
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