Energy firms' notifications over price hikes helps RM

[TrueBlueTerrier]

Energy firms' notifications over price hikes helps Royal Mail slow letters decline

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Delivering the news of energy price hikes helped Royal Mail to slow the decline in its letters business.

After all six major power firms raised bills at the end of last year, almost every household across the country received notification by post.

As well as a deal with British Gas to sort its mail, Royal Mail also delivers on behalf of a number other power suppliers.

Letters delivered fell by 5 per cent in the nine months to December, compared with 6 per cent during the six months to September, while nine month revenues fell 3 per cent.

But shares, which floated at 330p in October, fell 15.5p to 572.5p after Royal Mail said its parcels business – the group’s golden goose that makes up half of sales – was flat during the nine months.

Despite the boom in online shopping, with many retailers saying the internet was an ever-growing part of their business, the number of parcels delivered remained unchanged.

The rise of ‘click and collect’ – where customers order online but pick up in store – has offset the growth in online business.


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But the group also lost out to rivals after threats of strikes put off businesses from using Royal Mail.

An 8 per cent rise in revenues from parcels failed to assuage scepticism from some corners of the City. Royal Mail insisted the number of parcels delivered in December was up to 115million – but couldn’t say what the increase was compared to the previous year.

It also said delivery of ‘stamped letters’ – meaning residential post such as Christmas cards – were up in December, but again refused to say by how much.

[UnhappyGremlin]

Utter crap.

Energy companies raise prices basically every year, and always notify customers by post.
So why is it different now?

Somebody is surely on a wind up.

[Jamesethefirst]

It's all coming out now, oh! volumes aren't down as much as we thought,much as we have been saying all along. Still if you tell a lie often enough ,people start to believe it.

[DGP1]

Not too sure about the packets either, they have been increasing steadily for a while now (even excluding the monster Christmas period) they are still much higher than they where even 12 months ago.