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| Version 1 | Version 2 |
|---|---|
| Royal Mail profits sharply higher | Royal Mail profits sharply higher |
| (10 minutes later) | |
| Royal Mail doubled its operating profits to £177m in the first half of 2008/09 from a year ago, helped by cost cuts and greater efficiency. | |
| The average daily postbag is now 79 million items. This is five million fewer letters than two years ago. | The average daily postbag is now 79 million items. This is five million fewer letters than two years ago. |
| The postal group is facing competition from commercial rivals, who handle one in three of every letter posted. | The postal group is facing competition from commercial rivals, who handle one in three of every letter posted. |
| The figure provided does not include exceptional items - such as redundancy costs - which may have reduced profits. | |
| A clearer picture of its profitability will emerge in its annual results. | |
| Royal Mail also said stock market falls had pushed the group's pension deficit from £2.9bn in March this year to £4bn. | Royal Mail also said stock market falls had pushed the group's pension deficit from £2.9bn in March this year to £4bn. |
| Hard times | Hard times |
| Chairman Allan Leighton said the results showed that progress was being made in tough economic circumstances. | Chairman Allan Leighton said the results showed that progress was being made in tough economic circumstances. |
| "This strong performance has been delivered against a backdrop of falling mail volumes, increased competition, an unsatisfactory regulatory regime and the challenge of meeting the heavy demands of our pension scheme," he said. | "This strong performance has been delivered against a backdrop of falling mail volumes, increased competition, an unsatisfactory regulatory regime and the challenge of meeting the heavy demands of our pension scheme," he said. |
| Cost cuts and improved efficiency have contributed to rising profits and the group will soon have closed nearly 2,500 post offices. | Cost cuts and improved efficiency have contributed to rising profits and the group will soon have closed nearly 2,500 post offices. |
| Royal Mail wants "fairer" regulation, arguing that it is difficult to change prices and introduce new products and services in the competitive business mail market. | Royal Mail wants "fairer" regulation, arguing that it is difficult to change prices and introduce new products and services in the competitive business mail market. |
| A government decision on the future of the Post Office Card Account - which is expected soon - is of "critical importance" to its future, it said. | A government decision on the future of the Post Office Card Account - which is expected soon - is of "critical importance" to its future, it said. |
| Universal problems | Universal problems |
| Royal Mail's 350-year monopoly ended at the start of 2006, when other licensed operators were given the right to collect and deliver mail. | Royal Mail's 350-year monopoly ended at the start of 2006, when other licensed operators were given the right to collect and deliver mail. |
| While it has lost business in the lucrative bulk mail collection and sorting market, it is still obliged to deliver letters to and from anywhere in the UK at a uniform tariff. | While it has lost business in the lucrative bulk mail collection and sorting market, it is still obliged to deliver letters to and from anywhere in the UK at a uniform tariff. |
| This Universal Service, as it is called, continues to be loss-making, the group said. | This Universal Service, as it is called, continues to be loss-making, the group said. |
| It noted that there were "huge challenges to be overcome to secure the future of the Universal Service". | It noted that there were "huge challenges to be overcome to secure the future of the Universal Service". |