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| Royal Mail sees parcels revenue fall | Royal Mail sees parcels revenue fall |
| (35 minutes later) | |
| Royal Mail has warned that price changes and competition from rivals have hit its parcels business. | Royal Mail has warned that price changes and competition from rivals have hit its parcels business. |
| Parcels revenue was down 1% in the three months to 29 June compared with the same period last year, Royal Mail said. | Parcels revenue was down 1% in the three months to 29 June compared with the same period last year, Royal Mail said. |
| However, the company said it was still likely to meet expectations for its overall annual performance. | |
| The firm expects revenues from its letters business and "cost controls" to offset the lower parcels revenue. | The firm expects revenues from its letters business and "cost controls" to offset the lower parcels revenue. |
| Reorganisation | |
| Royal Mail said it was facing "increasing challenges" in the UK parcels market, including competition from carriers "aggressively reducing prices". | |
| Changes to Amazon's minimum order level for free delivery, together with the expansion of the online shopping giant's delivery network, also had an impact on revenues, Royal Mail said. | |
| The firm's parcels export business was hit by competition and a strong pound, Royal Mail added. | |
| Despite lower parcels revenues, Royal Mail said it expected to meet its yearly targets. | |
| It said that although letter volumes decreased by 3%, its letters revenue was up by 3% due to increases in stamp prices and letters "traffic" during the elections. | |
| The firm also expects to make £25m in savings through a "management reorganisation programme" announced in March. | |
| Royal Mail added that it had submitted evidence to regulator Ofcom setting out its concerns about the "threat to the universal postal service" caused by "unfettered cherry-picking of high density urban areas" for direct delivery competition. |