Royal Mail earnings hit by declining letters business

Royal Mail earnings hit by declining letters business

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Royal Mail said it saw a “resilient” first half despite reporting a drop in earnings as ongoing falls in the numbers of letters being posted offset growth in parcel deliveries.

Moves to slash costs helped limit declines in underlying operating profits, down 2% to £342m over the six months to September 27.

It said new contracts helped drive a 1% rise in parcel revenues.

However, the group was hit by a 3% drop in letter sales and Royal Mail said trading conditions remained “challenging”.

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