According to Royal Mail price rises and job cuts bear fruits.
Focus given on cutting cost , only service on 6 days a week.
According to Royal Mail first half operation earnings trebled due to the increased profit from their branches and parcel delivery operations offset continuous fall by letter delivery. The postal operating company owned by Govt and planning to privatize created profit from 22 million pounds to 67 mp in a year.
By applying necessary steps - increase in price and cost control steps - Royal Mail was able to survive financial crisis , said Moya Greene ,CEO.The results are pouring in , but there are still more work to be done.
Royal Mail delivers 59 million items daily to 29 million British customers , told losses during operations on parcels and letters fell from 55 million to 41 million pounds in a year. This improvement shows the price hike of a first class parcel from 41 pence to 46 pence.
The loss was compensated by 58 m pound profit of Royal Mall's British express parcels GLS and another 55 million pound generated from post office network. During the process of job cuts , Royal Mail cutoff 5000 workers in last 12 months, of which around 2000 from head office.
Conditions of trading will always be challenging and hence we have to find out more cost cutting methods by sticking to deliveries on all days excluding Sunday. Royal Mail made a loss of 120 million pound on letter business in last year. But Ofcom , industry regulator , proposed that they are able to charge whatever amount they want on their first class category of stamps in future.