Royal Mail backs fiscal 2019 outlook

Royal Mail PLC (RMG.LN) said Tuesday that its financial 2019 expectations are unchanged after a 2% rise in underlying revenue in the first quarter.

The U.K. postal operator said that a strong performance from its European parcel-delivery division, General Logistics Systems, was offset by an expected decline in U.K. letters-and-parcels in the three months to June 24.

GLS revenue rose 11%, with volumes up 10%. Royal Mail said the division achieved growth in almost all its markets, with continued strong growth in Italy, Denmark and Spain.

In the U.K., revenue fell 1%. A 6% rise in parcel revenue was outweighed by a 7% fall in total letter revenue.

Royal Mail maintained its outlook for addressed-letter volume declines of between 4% and 6% a year, with the drop expected to be at the higher end of that range for fiscal 2019.

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