Nov 15, 2018
Royal Mail half-year profits fall by more than half
Royal Mail's half-year profits have slumped by more than half, after the privatised postal saw revenues fall at its core UK business and failed to hit productivity and cost savings targets. Pre-tax profit dropped to £33m in the six months ended September, against £77m in the same period a year before, a decrease of 57 per cent. Chief executive Rico Back, in the role since June, reconfirmed Royal Mail's lowered profit and cost savings targets. "We will update the market next year on our strategy. There will be a greater emphasis on how we connect customers, companies and countries through our domestic and international businesses. There will be a clearer focus on financial performance and management accountability. In March, we will host our first Capital Markets day since IPO in 2013. We will share more detail then about our direction for the next five years." Given the shock of the profit warning, the disappointing interim results are unlikely to come as a surprise for investors during what has been an eventful year for Royal Mail.
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