International Distributions: Royal Mail Revenue down 12.8%

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https://www.marketwatch.com/story/inter ... 1674718459

International Distribution Services PLC, or IDS, said Thursday that revenue for the third quarter of fiscal 2023 fell, and that due to continuing industrial disputes it expects negative in-year trading cashflow at Royal Mail in fiscal 2024.

The postal service and courier company--formerly Royal Mail PLC--said generation of positive cash flow will require "from the proceeds of asset disposals," and that it continued to target a return to adjusted operating profit in fiscal 2025.

The company said that for the three months ended in December group revenue fell to 3.3 million pounds ($4.1 million) from GBP3.6 million for the third quarter of fiscal 2022. Royal Mail revenue fell to GBP2 million from GBP2.4 million the year before. Revenue for the GLS division in the period rose to GBP1.3 million from GBP1.1 million, IDS said.

For the nine-month period ended in December, group revenue fell to GBP9.1 million from GBP9.6 million in the year-prior period with Royal Mail revenue down to GBP5.7 million from GBP6.5 million in the year ago. GLS revenue rose to GBP3.5 million from GBP3.1 million a year earlier.

IDS said its year-to-date adjusted operating loss was GBP295 million and that the net cost of strike action in the nine-month period was estimated at around GBP200 million.

The company said the number of voluntary redundancies require to achieve the 10,000 full time equivalent reduction by August 2023 will be significantly lower than the 5,000 to 6,000 communicated in October.