Royal Mail declares parcel business biggest contributor to revenues in first results since privatisation

The Royal Mail has said its parcel division is its biggest contributor to group revenues, making up 51% of the business, as the company reports its first financial results since its privatisation last year.

Royal Mail: parcel business growth has boosted overall revenue
Royal Mail: parcel business growth has boosted overall revenue

The company said its group revenues grew by 2% to £9.45m, due to its parcel revenue growth, which overtook its letters business for the first time.

Chief executive Moya Greene said the company WAS facing "a couple of headwinds" and that "the competitive environment on the parcels side is more intense. We are taking steps to remain the leader in this growing market".

in a bid to compete with rivals DPD and Hermes, Royal Mail declared yesterday that it will trial a Sunday delivery service this summer, opening around 100 of its UK delivery offices on Sunday afternoons to deliver parcels to households within the M25.

It will also extend its Parcelforce service for major e-commerce customers.

The news comes months after Royal Mail revealed it is cutting 1,600 jobs within its operational and head office managerial function, as part of a £50m cost-cutting drive that has been expected to result in marketers losing their jobs. 

The revelation came despite the messaging of the brand's Christmas campaign, which championed the dedication of its postmen and women, in its first TV work for six years

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