Royal Mail Posts Flat First Quarter Revenue

Royal Mail says it is "stepping up the pace of change" after posting flat revenue in its first quarter.

The company, which was privatised in 2013, said it would be maintaining a tight focus on costs and innovation as letter volumes continued to fall and competition held back growth in its important parcels market.

Royal Mail said parcel volumes grew 3% in the three months to 28 June with revenue up 2%.

UK letter volumes declined 5% with revenues down 4%.

Overall group revenue was boosted by strong trading at Royal Mail's European parcels arm, GLS.

Chief executive Moya Greene said: "In the first three months of our financial year we have seen a continuation of the overall market trends we saw last year.

"We have benefited from the parcel initiatives that took effect in the second half of last year and a good performance from GLS.

"Our trading environment remains challenging and we are stepping up the pace of change to drive efficiency, growth and innovation, while maintaining a tight focus on costs."

The company maintained its guidance on its full financial year.