'Brexit' pamphlets, ballots set to deliver boost to Royal Mail

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Royal Mail expects the June referendum on Britain's membership in the European Union to spur a short-term surge in sales as Britain's postal operator delivers pamphlets for the "in" and "out" campaigns as well as mail-in ballots.

Chief Executive Officer Moya Greene said she expects about 30 percent of those who vote in the June 23 referendum to cast ballots by mail, based on patterns from previous elections. The company should see a short-term benefit from the increase in volume, she said.

"We certainly get paid for that," Greene said. Britain has about 45 million registered voters.

That could help make up for slowing growth in Europe and higher-than-expected costs related Royal Mail's transition to becoming a private company. The company is grappling with a structural decline in letter deliveries because of a shift to e-mail and other forms of digital communication. Royal Mail said Thursday that addressed letter volume, excluding campaign mailings, fell 3 percent in the 12 months ended March 27.

While British letter volume declined, sales have grown in Royal Mail's domestic and continental European parcel delivery business. The company recently won business from retailers such as John Lewis and Waterstones, helping it to make up for business lost when Amazon.com set up its own British delivery operation.

Cost cuts helped adjusted operating profit rise 5 percent to 742 million pounds ($1.08 billion) in the latest fiscal year, Royal Mail reported Thursday. The company issued a cautious outlook, citing the transformation costs and a slowdown in growth in continental Europe.

Greene declined to comment on whether Royal Mail was for or against EU membership. Many U.K. companies with broad exposure to local voters have avoided taking a stand on the referendum for fear of alienating potential customers.

Michael Bloomberg, the founder and majority owner of Bloomberg LP, the parent company of Bloomberg News, has publicly supported the campaign to keep Britain in the EU.