Royal Mail expected to report revenues of 9.2bn and pre-tax profits of 410m

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Royal Mail boss Moya Greene will have to make a special delivery to sustain the share price, say analysts
Investors expect Royal Mail PLC (LON:RMG) to deliver the goods when it reports full-year results on Thursday.

The former state-owned mail and parcel service is tipped to meet the guidance and outlook it gave at the beginning of this year.

At the end of 2014, consensus projections for revenue and pre-tax profit for the year to the end of March 2015 were for £9.5bn and £447mln.

These numbers have come down quite substantially, with expectations now for revenues of £9.2bn and pre-tax profits of £410mln, said CMC Markets.

Its letter business is declining and the parcel operation is facing competition from the likes of UK Mail Group PLC (LON:UKM), FedEx Corporation (NYSE:FDX), United Parcel Service, Inc. (NYSE:UPS) and Amazon.com, Inc. (NASDAQ:AMZN).

CMC said in a note: "Chief executive Moya Greene is going to have to come up with a special delivery of an optimistic outlook and better-than-expected profits to sustain a share price which looks tilted somewhat towards the high side."

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