Britons send 40% fewer letters than 10 years ago, but they still account for 60% of Royal Mail’s business. It hopes that parcels will make up the gap, but faces competition from at least 16 other big players in what is a cut-throat market.
Parcels revenue was up 3% in the period.
The City took heart that Royal Mail is on track to meet forecasts for the year, but the shares took a hit due to the fall in letters, down 21p at 428p.
Royal Mail has around 600,000 retail shareholders who will get dividend payments. They include staff, who own 12% of the company.
Brian Scott, Unite officer for Royal Mail, said: “This confirmed the hard work and commitment of our members to deliver a good service to the public in the run-up to Christmas.
“However, it is extremely disappointing that Royal Mail is boasting about paying employees £500 in dividends when at the same time they are seeking to close their pension scheme which will cost those same employees thousands of pounds in hard-earned pension benefits.”
Royal Mail points out that is pays £400 million a year into the pension fund and £220 million a year in dividends. That makes it one of only 5 FTSE companies that pay more in pensions than in dividends.
