The Royal Mail (LSE:RMG) today released its latest trading update covering the three months ended 26 June 2016.
The report announced that while this time of the year is traditionally seen as a quiet period, group revenue increased only marginally by 1%. UK revenue, however, had a 1% fall.
The UK postal and parcel service also announced that parcel volumes were up 2% alongside a 2% rise in parcel revenue due to international imports including a 13% growth in European parcels network GLS.
The group faces increasing threats of lower economic growth which could heavily hinder the delivery service following Britain’s decision to leave the EU.
Moya Greene, Chief Executive Officer, Royal Mail plc, said:
“In what is traditionally a quieter trading period for the business, we saw no material change in overall trends. Group revenue was up 1% while in the UK revenue was down 1%. In Europe, GLS continued to perform well.
“We continue to face the challenges caused by the current low inflationary environment and our highly competitive markets. We remain, however, very focused on operational and financial efficiency and delivering a high quality service for all our customers.”
In reaction to the announcement, shares in the Royal Mail dropped 2p 0.4% down to 500p in early morning trading.
At 10:09am BST Royal Mail PLC traded at 503.10 +1.10 (0.22%)
19/07/2016