Royal Mail posted a sharp drop in letter mailing in the crucial lead up to Christmas, citing “overall business uncertainty” in the wake of the Brexit vote, particularly hitting volumes of advertising and business letters.
The company said that the number of addressed letters slipped 6 per cent in the nine months leading up to 25 December, which follows a 4 per cent decline in the previous six months.
“We are seeing the impact of overall business uncertainty in the UK on letter volumes, in particular advertising and business letters,” the group said.
For the other areas of business, however, the company struck a more upbeat note.
Parcel volumes were up 2 per cent for the period. In December alone, the company handled 138 million parcels. UK parcel revenue was up 3 per cent with volumes up 2 per cent. Overall revenue for the nine months was flat, thanks to a 9 per cent increase in its international unit offsetting a 2 per cent fall in revenue at its domestic parcels and letters unit.
The company also stuck to its forecast for the full year and said it was on track to achieve its cost savings targets.
The company will report results for the full year, ending 26 March, on 18 May.
