Royal Mail has announced its financial results for the nine months ended December 28, 2014. It reported that group revenue increased by 1% on the prior comparable period of 2013. The growth in revenue was primarily attributable to GLS which saw revenue growth of 8%. Revenue across other divisions was flat.
UKPIL recorded a largely flat nine month period with both parcel and letter revenues holding steady year-on-year. UK Parcels saw its volumes rise by 3%, though revenue remained flat. The company attributed this result to the high level of competition in the market putting pressure on prices. UK Letters saw a 3% decline in volumes over the period although its revenue remained flat despite this, largely because of the contribution made by election mail earlier in the period.
Moya Greene, Royal Mail’s Chief Executive Officer said, “Given our performance over the Christmas period, we are confident that the outcome for the full year will be in line with our expectations. We handled around 120m parcels in the month of December alone, 4% more than last year. Letters performed in line with our expectations, with addressed letter volumes down 3% in the first nine months. GLS, our ground-based European parcels business, continued to perform well. We are continuing to bear down on costs and expect that underlying operating costs before transformation costs in UKPIL will be flat for the full year.”
For more information on the express and small parcels market take a look at Ti’s latest Global Express and Small Parcels report here.
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