QUARTERLY VOLUME UPDATE

During the ongoing COVID-19 pandemic Royal Mail (RMG.L) will provide quarterly updates on volumes in its Royal Mail and GLS businesses. The first such update is below covering the period Monday 30 March to 28 June 2020.

Royal Mail

·    Parcel volume up 38% year on year (117 million more parcels)

·    Domestic account (ex. Amazon) parcel volume up 64%

·    Addressed letters (ex. elections) volume down 33% (788 million fewer letters)

GLS

·    Volumes up 22% year on year

Volume trends for the first quarter overall were broadly unchanged from the update provided on 25 June, which covered the first two months of FY2020-21. There are no changes to the two scenarios for FY2020-21 previously outlined on 25 June.

Parcel growth in both Royal Mail and GLS continues to be driven by B2C and e-commerce.

Advertising mail in Royal Mail continues to be impacted by GDP and low levels of business activity.

As the UK starts to come out of lockdown we are not seeing any change as yet in customer behaviour. Our customers are wanting more parcels delivered to their homes and are sending fewer letters. We are working as quickly as we can to adapt our business to meet our customer needs.

The initiatives announced on 25 June, namely the integration of Parcelforce into Royal Mail, the management restructure and actions on non-people costs in Royal Mail, alongside Group capex reduction initiatives, are all underway.

Following the Joint Statement on 29 June between Royal Mail and CWU, talks with CWU are progressing.

Royal Mail will hold its AGM on 8 September. A further update on second quarter volumes will be published in October.

Enquiries:

Investor Relations

John Crosse

Phone: 020 7449 8183

Email: investorrelations@royalmail.com 

Media Relations

Shane O'Riordain

Phone: 07770 544 585

Email: shane.oriordain@royalmail.com 

Company Secretariat

Mark Amsden

Phone: 020 7449 8289

Email: cosec@royalmail.com 

Disclaimer

Figures presented in this trading update are not audited. This trading update contains certain statements that constitute "forward looking statements". Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Group or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Persons receiving this release should not place undue reliance on any forward-looking statements. The Group disclaims any obligation or undertaking to update or revise any forward-looking statements contained in this document to reflect any change in its expectations or any change in events, conditions or circumstances on which such statements are based unless required to do so by applicable law, the Prospectus Rules, the Listing Rules or the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority.