Investors deserted Royal Mail yesterday after the postal network admitted that its profits would not be as high as hoped, with the volume of letters Britain is sending falling by more than expected.
The company blamed the decline in letters on the slow death of the Christmas card and the business world’s anxiety about sending out junk mail that could breach privacy laws under the European General Data Protection Regulation (GDPR).
The number of letters that Royal Mail delivered in the nine months to December 23 fell 8 per cent, a far faster decline than the long-term average of 4 per cent to 6 per cent.
In a trading update yesterday, Royal Mail narrowed its operating profit forecasts to between £500 million and £530 million