Britain's postal firm Royal Mail said revenue in its first quarter was flat and pledged to continue its focus on cost controls this year as letter volumes fall and competition holds back growth in the parcels market.

Royal Mail, privatised in 2013, said on Tuesday parcel volumes grew 3 per cent in the three months to June 28th, with revenue - worth half of group turnover - up 2 per cent. UK letter volumes declined 5 per cent with revenues down 4 per cent.

The performance marked an improvement in parcels, due to its expansion into new parts of the market, and a deterioration in letters.

Overall group revenue was boosted by strong trading at Royal Mail’s European parcels arm, GLS.

Reuters