Shares in Royal Mail Group (LON:RMG) have advanced in today’s session as the privatised postal operator unveiled a small rise in overall revenue for the first three months of its financial year. The company, however, saw its letter revenue dip during the reported period.
As of 08:35 BST, Royal Mail’s share price had added 1.87 percent to 489.80p. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index having slipped marginally into the red and currently standing 0.04 percent lower at 7,597.67 points. The group’s shares have added just under a quarter to their value over the past year, as compared with a near three-percent gain in the Footsie.
Royal Mail posts first-quarter results
Royal Mail announced in a statement this morning that its group revenue had inched two percent higher in the three months ended June 24. Revenue at the company’s UK letters and parcels business, however, dipped one percent, with parcel revenue up six percent and total letter revenue down seven percent.
“Overall, trading in the first three months of our 2018-19 financial year was in line with our expectations,” Royal Mail’s new chief executive Rico Back commented in the statement, adding that the group’s outlook and other guidance remained unchanged.
Group could face investor revolt at AGM
The update comes ahead of Royal Mail’s annual general meeting on Thursday when the postal operator could potentially face an investor revolt. City A.M. reports that both Institutional Shareholder Services (ISS) and Glass Lewis both criticised Back’s base salary which is 16.8 percent higher than that of outgoing chief executive Moya Greene.
The postal operator has said that the higher salary helped offset Greene’s benefits in areas such as her pension.