Royal Mail revenues are expected to be £900m higher than last year and hit £8.6billion after surge in customers posting letters over last month
- Revenues for Royal Mail are expected to reach around £8.6billion amid Covid-19
- Royal Mail said letter volumes, advertising and stamped mail all overperformed
- Parcels have remained in line with expectations, which remain at all-time highs
Royal Mail revenues are expected to be £900million higher than last year following a significant surge in customers posting letters in the last month.
The cost of a major restructuring is also expected to come in below expectations, costing around £90million instead of an original estimate of £140million.
Revenues are set to be considerably higher than last year – at around £8.6billion – and, for the entire group, adjusted operating profits will hit around £700million, compared with £325million a year ago.
Royal Mail said letter volumes, along with advertising, business and stamped mail, have all performed above expectations.
Royal Mail revenues are expected to be £900million higher than last year following a significant surge in customers posting letters in the last month
Parcels have remained in line with expectations, which remain at all-time highs.
A major restructuring announced last June is nearing completion and is expected to save £15million this year, with targeted annual savings of £130million after that.
The update comes just a month after another profit upgrade, when bosses said they would retain around 10,000 of the 33,000 temporary workers who helped Royal Mail out over the festive period.
The cost of a major restructuring is also expected to come in below expectations, costing around £90million instead of an original estimate of £140million
At its peak, the business carried 11.7 million parcels in one day – almost a third more than during the peak of the first national lockdown last spring.
That was part of the 496 million parcels delivered over the last three months of 2020 – an all-time high.
At the time, Royal Mail said it expected to make an operating profit “well in excess” of £500million in the financial year ending in March, which has now been revised to £700million.