Royal Mail shares fall as competition hits profits
The "harsh realities" of competition dealt another blow to Royal Mail's once-buoyant share price as it revealed a drop in half-year profits.
The company spooked investors with its warning that the UK parcels market will grow by much less than expected over the next two years due to the impact of Amazon's increased use of its own network for deliveries.
Twelve months on from its controversial flotation amid much criticism, Royal Mail's shares now stand at about 430p, having slumped 8% yesterday and by 30% from a peak in February.
As well as facing fierce competition in its parcels division, Royal Mail warned that its six-day a week Universal Service faces threats from rivals.