LONDON (UK) – On Thursday, Britain’s Royal Mail raised its full-year revenue prediction as it stood to gain from the spurt in online shopping because of the pandemic spread and the lockdowns. However, the firm warned that it was grappling with the costs of social distancing and the loss-making letters business.
According to the firm, it now expects revenue to be 380 million to 580 million pounds higher year-on-year. If it hits the top end of that prediction, its main UK operation could break even.
The company used to be state owned until its privatisation in 2013. It said pre-tax profit dropped to 17 million pounds for the six months ended Sept. 27 from 173 million pounds a year earlier.
With parcel volumes marking strong growth, the revenue jumped nearly 10% to 5.67 billion pounds.
“Whilst the COVID-19 pandemic continues to present challenges for both Royal Mail in the UK and GLS (international parcels business), the first-half performance has been above our initial expectations in many areas,” Interim Executive Chairman Keith Williams said.