Royal Mail downgrades letter volumes guidance

Writer, Stock Market Wire
Tuesday, January 29, 2019 - 07:23

Royal Mail downgraded its letter volume guidance, blaming the impact of new European privacy regulations and 'business uncertainty'.

For the nine months through December, the company said its overall trading performance was broadly in line with expectations.

However, in the letters business, volumes were down 8%, while revenue fell 6%.

Addressed letter volume declines, excluding elections, were expected to fall 7-8% in the year through March.

'While the rate of e-substitution remains in line with our expectations, business uncertainty is impacting letter volumes,' chief executive Rico Back said.

'As a result, addressed letter volume declines, excluding elections, are likely to be outside our forecast medium-term range next year.'

'Otherwise, we are reconfirming the outlook and other guidance for 2018-19 provided in our half year results.'

Royal Mail confirmed that it expected to deliver a full-year operating profit before transformation costs of £500m-to-£530m.

In the parcels business, volumes and revenue both rose 6%.


Related content

Broker Forecast - Morgan Stanley issues a broker note on Royal Mail Plc

Morgan Stanley today upgrades its investment rating on Royal Mail Plc (LON:RMG) to equal weight (from underweight).

Broker Forecasts data provided by www.sharesmagazine.co.uk...

Mon, 15/07/2019 - 08:20


The price is right: Royal Mail shares are now a bargain

Author: 

Are you feeling brave and are happy to make a contrarian call? Royal Mail (RMG) looks like a very interesting ‘buy’ at the...

Thu, 27/06/2019 - 00:00


Broker Forecast - Societe Generale issues a broker note on Royal Mail Plc

Societe Generale today upgrades its investment rating on Royal Mail Plc (LON:RMG) to hold (from sell) and cut its price target to 208p (from 235p)....

Fri, 14/06/2019 - 10:30


Broker Forecast - HSBC issues a broker note on Royal Mail Plc

HSBC today downgrades its investment rating on Royal Mail Plc (LON:RMG) to hold (from buy) and cut its price target to 216p (from 300p).

Broker...

Fri, 07/06/2019 - 11:00


Card Factory confounds the doubters with solid first-quarter sales

Royal Mail’s dividend cut shows that the former FTSE 100 member is finding life pretty tough in the digital age, as letter volumes keep declining...

Wed, 05/06/2019 - 12:39