The decline, as well as concerns around Royal Mail's current negotiations with labour unions about pensions, overshadowed improvements in its domestic parcels business where it noted in a trading statement that it had a better Christmas than the previous year and reported higher nine-month revenues.
These are external links and will open in a new window Close share panel Image copyright Reuters Image caption Royal Mail is currently mandated to deliver letters across the UK - including remote areas.
Shares in Royal Mail closed down 8. It also said competition was endangering its government-mandated Universal Service, which guarantees a single price postal service that delivers to all UK addresses. The caution came as Royal Mail reported a small fall in pre-tax profits.
The slower decline was due to election pamphleteering, particularly relating to the Scottish Referendum, for which Royal Mail delivered seven million campaign mailings and over five million poll cards.
She added that the "cherry-picking" of urban mail routes by competitors "undermines the economics" of its nationwide delivery service.
Royal Mail has long called for the regulator, Ofcom, to consider expanding the Universal Service mandate - which ensures mail is delivered across the UK, six days a week, at one fixed price - so that it includes rivals such as Whistl.
That may include forcing competitors to also deliver letters to rural areas at an affordable price - a service for which companies can make little or no profit.
Media playback is unsupported on your device Media caption''Fierce competition'' from rivals has caused the drop in profits "We would assess any emerging threat to the service quickly, in the interests of postal users," he added.
Royal Mail has been under increased public scrutiny since it was privatised in October After an initial pricing of p, Royal Mail shares rose above p in the months after its flotation, but have been steadily declining since the early summer, to p.
Some may dismiss this as special pleading from a company that does not much like competition. But I have just spoken to the Royal Mail's chief executive, Moya Greene, and she is clear - if action isn't taken now, Royal Mail's ability to fund the six day letter delivery service across the UK will come under possibly unmanageable strain.Why is the Royal Mail brushing off investor concerns?
pm, 14th August First there was a painful row with shareholders over the appointment of the new chief executive, Rico Back, who, despite already working for Royal Mail, was awarded a £6m ‘golden hello’.
3 days ago · Royal Mail’s global network is a postal option for all of our UK clients and GLS clients. Our ambition is to offer, through that postal and own network, parcel solutions to anywhere in the world. Why Is Royal Mail In Decline? Why have Royal Mail seen a fall in profits of 72% on the same period during ?
2. Background. Half year profits in Royal Mail’s plunged by 72% on the same period during last year, due to a £66 million loss in their letter division (Independent, ).
Royal Mail also flagged that addressed letter volumes are now expected to decline faster than the group’s expectations, while pointing to the impact of GDPR regulation. Trading conditions in the. Members of the royal family will be out in full force on Friday to attend the wedding of the Queen's granddaughter, Princess Eugenie.
The Duke makes regular appearances at . Royal Mail has warned that new European data laws could reduce the number of letters being sent, as its British business failed to increase revenue last year. The company said that the impact of.