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Royal Mail Share Price Gains on Improving Full-Year Profit Outlook

Royal Mail (RMG)
Nigel F

Shares of Royal Mail PLC (LON: RMG) soared more than 9% after the company offered more positive guidance on the back of the rising revenue.

The FTSE 250 constituent reported profit before tax of £17 million, compared to £173mln a year ago. An adjusted operating loss of £129 million was reported for six months ending September 27, on the back of the restructuring charges of £147 million.

Revenue soared 9.8% to £5.7 billion with sales expected to come in £380 million to £580 million higher.

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“For the first time, parcels revenue at Royal Mail is now larger than letters revenue, representing 60% of total revenue, compared with 47% in the prior period,” said Keith Williams, interim executive chair in a statement.

On a more positive note, Royal Mail said it now expects full-year adjusted operating profits to come “better than break even” if a trend of higher revenues is sustained. This guidance is better than a full-year “material loss” announced in September.

Royal Mail share price gained on better guidance November 2020

Royal Mail share price gained over 9% to trade at 312.9p, a new 2-year high for the stock.

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Nigel F
Nigel F
Team Member

Nigels tiefes Verständnis der Finanzmärkte basiert auf über 10 Jahren Erfahrung. Nigel wurde bisher zweimal von der FCA (Financial Conduct Authority) autorisiert und hat in der letzten Zeit eine Finanz-Brokerage Firma besessen und verkauft. Er liefert hochaktuelle Analysen und Einsichten in die Finanzmärkte und in die allgemeine Wirtschafts- und Währungspolitik des Vereinigten Königreichs, der USA, Europas und Asiens.