Royal Mail must continue to invest in its services to remain competitive warns DMA following 3% fall in marketing mail revenue
Royal Mail "must continue to invest in its services" in order to remain competitive and win new customers the Direct Mail Association's executive director Chris Combemale, has said, as the service revealed its half year figures, including a 3 per cent fall in marketing mail to £545m.
The postal service today reported a 2 per cent increase in revenue for the first six months of its financial year, at £4,520m, and an operating profit of £280m, after transformation costs of £70m.
However, the organisation saw its overall letter revenue, including marketing mail, fall by 4 per cent, to £2,230m, with letter revenue down by 3 per cent and marketing mail business also dropped 3 per cent to £545m.
In reaction, Comendale said that the drop was down to the 'Olympic effect' and also the Diamond Jubilee having increased last year's marketing mail figures.
"Confidence in the medium is still riding high among marketers, with expenditure on marketing mail continuing to make a huge contribution to Royal Mail's bottom line," he added.
"To maintain its bulk mail custom and to win new customers, Royal Mail must continue to develop the channel by investing in its services to ensure it remains competitive in a burgeoning market. As the results show, it has lost some custom due to uncertainty hanging over its industrial action negotiations with the CWU.
"We hope both reach an equitable agreement soon. Any disruption to service would quickly lead to further businesses taking their custom elsewhere, which is an outcome that would not benefit the postal workers that (Community Worker's Union) CWU represents."
A vote held in October saw CWU members vote in favour of industrial action in the run up to Christmas over 'disrupted employment terms' which the DMA has warned will mean a 'severe financial impact' to businesses should it go ahead.