Royal Mail enjoys best Christmas in four years as it wins back customers

18 January 2024 , 08:30

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Royal Mail improved trading over the festive season (Image: PA Wire/PA Images)

Royal Mail has celebrated its best Christmas performance in four years, with increased revenues from letters and parcels.

The company's owner, International Distributions Services (IDS), said there was a "marked improvement" in the last three months of 2023. The firm delivered over 99% of first- and second-class mail sent by the final postal dates in time for Christmas.

Despite a 6% drop in the number of letters posted, stamp price increases led to an 11.8% rise in letter revenues. Parcel revenues soared by 14.4%, with 21% more parcels delivered than the previous year, which was affected by strike action. Royal Mail stated it had regained customers lost during the industrial dispute.

IDS is expected to report operating profits for the second half of the year, but this will be balanced out by a £169 million loss in the first half. This leaves the company on track to break even for the full year.

Martin Seidenberg, IDS chief executive, commended the "extraordinary efforts" of staff over the festive period. He said: "This has led to a marked improvement in both trading and operational performance for Royal Mail over Christmas, and we have continued to win back customers. We need to build on this momentum."

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Mr Seidenberg has repeated his urgent call for action on the rule that says letters must be delivered six days a week. He said: "With Ofcom due to publish options for the future of the universal service imminently, now is the time for urgent action.

"We are doing all we can to transform, but it is simply not sustainable to maintain a delivery network built for 20 billion letters when we are now only delivering seven billion." Royal Mail wants to stop Saturday deliveries and move from a six-day service to five days. Ofcom's advice on this is expected soon.

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Lawrence Matheson