Royal Mail reports slip in half yearly profits

Royal Mail reports a slight fall in adjusted profits for the six months to the end of September

Royal Mail reports a slight fall in adjusted profits for the six months to the end of September

Britain's Royal Mail reported 250 million pounds ($328.7 million) in half-year adjusted profit before tax, down slightly, while revenue edged up 2 percent helped by its European parcels business.

Profit for the 26 weeks to September 24 fell from 252 million pounds a year earlier, the postal and parcel delivery company said.

Revenue for the first half of the year rose two per cent, with profit after tax nearly doubling to £168m.

While Royal Mail recently averted the threat of industrial action in the run up to Christmas, the dispute with its union over changes to the pension plan still lingers.

Greene said her team was in external mediation with the Communication Workers Union.

The group's United Kingdom parcels and letters division slipped to a pre-tax loss of £4m, despite a boost from higher parcel volumes including from Amazon - as letters continued their decline - while its "people costs" rose.

GLS profits climbed 12% to £81m thanks to strong revenue growth with Royal Mail highlighting a good performance in Italy.

Ongoing cost cutting drove a 1% underlying reduction in adjusted UKPIL operating costs, before including transformation costs, which saw operating profit of £233m, down 6% on the same period a year ago.

Royal Mail was controversially privatised in 2013.

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