StockMarketWire.com - Letter and parcel delivery group Royal Mail said its first-quarter revenue grew 13% and said its prospects for the full year were unchanged.

Revenue for the three months through June increased to £3.16 billion, up from £2.81 billion year-on-year.

Compared to two years earlier, in the first half of the 2019 financial year, revenue had risen 20%.

Parcel volumes fell 12.5% year-on-year, though parcel revenue increased 3.4%.

Addressed letter volumes, excluding elections, rose 22% and total letter revenue rose 26%.

'The first quarter saw a strong revenue performance across the group, with both Royal Mail and GLS reporting higher revenues than the prior year,' chairman Keith Williams said.

Williams said the lower parcel and volumes and higher letter volumes encompassed the UK's first lockdown, when non-essential retailers closed for the first time.

'We are starting to see evidence that the domestic parcel market is re-basing to a higher level than pre-pandemic, as consumers continue to shop online,' he said.

'As pandemic restrictions continue to ease there is still uncertainty about levels of Covid transmission, the impact on consumer behaviour and economic factors such as GDP growth and inflation, all of which will impact on future performance.'

'We continue to expect fluctuations in volumes as we emerge from Covid restrictions, which we will need to manage accordingly.'

'Nonetheless we are encouraged by the revenue performance across Royal Mail and GLS in the first quarter, and notwithstanding the current uncertainty, remain confident about the full year.' Story provided by StockMarketWire.com