Royal Mail reports revenue rise as parcel delivery offsets letter slowdown
Royal Mail reported a 1 per cent rise in first quarter revenue on Tuesday, as a robust performance in its European parcel delivery business helped to offset more lacklustre figures out of the UK.
The company reported a 1 per cent fall in is combined UK parcel and letter division. Fewer people sent letters, but the soaring popularity of e-commerce helped offset that to a large extent.
“The company is at the mercy of the shifting trends in letters and parcels,” said Neil Wilson, a senior market analyst at ETX Capital. “People are sending fewer letters to each other but online shopping means far more parcels are being sent – the Amazon effect, which is proving so destructive for high street retailers, is at least supporting Royal Mail,” he added.
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