20th November 2014
British post and parcel carrier Royal Mail has warned that its rivals are eating into its parcel delivery business, which has taken a hefty toll on its shares in online investing.
The postal service has warned that Whistl – formerly known as TNT – could wipe £200 million off sales, while Amazon's newly launched in-house delivery service may hurt Royal Mail to the tune of two per cent in the short-term, which includes the profitable festive period.
Royal Mail chief Moya Greene told the BBC that growing competition could "undermine the economics" of delivering to every part of the UK – something it's required to do by law. By contrast, its rivals can choose to stick to urban routes that bring in more money.
Yesterday's financial statement wasn't all bad news though – although profits had fallen in the six months to the end of September, they still sat at £218 million, while international parcel delivery arm GLS saw revenues increase by seven per cent. By the close of online investing yesterday, Royal Mail's shares were worth 430p each.?
Begin trading today! Create an account by completing our form
At One Financial Markets we are committed to safeguarding your privacy.
Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.
Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.
Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.
By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.