Royal Mail’s parcels revenue rose two per cent in the three months to 26th June – in line with the rise in volumes.
But this was offset by the declining letters business. Volumes were down two per cent and revenue was down three per cent in Letters.
Overall, UKPIL, the main domestic parcels and letters business saw revenue fall by one per cent.
Revenue and volumes at GLS, the continental parcels business, both rose by 13 per cent. Royal Mail is expanding the GLS business and bought Spanish express operator ASM Transport Urgente for €71m in June.
Royal Mail is also in the acquisition trail in the UK and recently bought eCourier, the same day delivery company.
CEO Moya Greene said: “We continue to face the challenges caused by the current low inflationary environment and our highly competitive markets. We remain, however, very focused on operations and financial efficiency and delivering a high quality service for all our customers.
