Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.


By Eva Mathews and Yadarisa Shabong

(Reuters) – Royal Mail is losing one million pounds a day, the British post and parcel delivery firm said on Wednesday, as it struggles to cut costs as inflation-hit consumers cut back on online shopping and postal workers threaten to strike.

While the pandemic led to an unexpected boom in parcel delivery that bolstered profit and helped the company pay out around 400 million pounds to shareholders, it was already facing a sliding UK letters business and stiff union opposition to transformation plans.

The centuries-old firm renamed its holding company International Distributions Services and said it would consider splitting its UK business and overseas business GLS into two separate firms if no “significant operational change” is achieved.

Analysts said the potential split has been the “elephant in the room” and could be a tactic aimed at inching forward with the union, while GLS could struggle to go it alone.

The pandemic boom in parcel volumes bolstered by the delivery of (Covid) test kits and parcels is over,” Royal Mail Chairman Keith Williams said.

Royal Mail’s UK business lost 92 million pounds ($110 million) in its first quarter to end-June on revenue that fell 11.5%. It expects to break-even for the year, excluding any strike impact.

Royal Mail’s largest labour union, CWU, said on Tuesday that more than 115,000 postal workers had voted to strike over pay as Britain faces its worst cost-of-living crisis in decades.

Company executives said they were “absolutely ready” to discuss the issue.

Shares in Royal Mail, which was privatised in 2013, fell about 2% to 279 pence by 1115 GMT, and were down around 45% so far this year.

Operating profit at Amsterdam-based GLS was 94 million pounds in the quarter, and revenue rose 7.8%.

A small fish in a big sea, GLS could find it difficult to compete with deeper-pocketed competitors in the international logistics business.” Laura Hoy, an analyst at Hargreaves Lansdown, said.

($1 = 0.8329 pounds)


(Reporting by Eva Mathews and Yadarisa Shabong in Bengaluru; editing by Uttaresh.V, Elaine Hardcastle, Kirsten Donovan)


Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!

By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts