Royal Mail parent IDS to break even this fiscal year (updated)
16/11/2023 07:20
(Adds background, previous expectations and revenue in
paragraphs 3-5)
Nov 16 (Reuters) - Royal Mail owner International
Distributions Services IDSI.L said on Thursday it expects to
pay a modest dividend from its unit GLS this year and its
adjusted operating performance would be around the breakeven
point this fiscal year.
IDS, which owns Royal Mail in the UK and international
parcels network GLS, reported a group adjusted operating loss of
169 million pounds ($209.41 million) for the six months ended
Sept. 24, compared with 57 million pounds a year earlier.
Royal Mail had suffered several setbacks in the past year
from strikes by postal workers, a cyber security incident, to an
Ofcom fine for missed delivery targets and the loss of its
360-year monopoly to deliver parcels from post office branches.
IDS had previously expected to return to profit at the group
level this fiscal year ending March, while the Royal Mail unit
was expected to become profitable only next fiscal year.
IDS's group revenue eked out a 0.4% rise in the first half,
as a 5.9% growth at GLS was offset by weakness at Royal Mail,
which saw parcel revenues fall 6.2%.
($1 = 0.8070 pounds)
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Rashmi
Aich and Sohini Goswami)
((Yadarisa.Shabong@thomsonreuters.com; +91 9742735150;))