Annual revenue of the Royal Mail FY 2010-2022

The revenue of the Royal Mail Group rose gradually from 2010 to 2022. In the financial year ending March 2022, the group earned more than 12.7 billion British pounds in revenue, a slight increase compared to the previous year. The majority of the 12.7 billion revenue was generated by the two operations of the Royal Mail Group, namely letter and parcel deliveries, amounting to 4.8 billion and over 3.7 billion British pounds, respectively.

Changes in the written communication

Even though most of Royal Mail’s annual earnings in 2022 were generated by correspondence services, letter mail is not the most convenient communication method in the modern world. Day by day, people engage more with digital technologies, and conventional mail has been losing favor against the widespread usage of mobile phones and computers. Consequently, the earnings generated by UK Royal Mail decreased by 15 percent between 2017 and 2022. 

Pandemic-fueled demand in parcel delivery market

The revenues earned by the company’s parcel deliveries increased significantly in recent years, mainly due to the coronavirus pandemic. The coronavirus crisis upsurged online economic activities in the United Kingdom. As a result, demand for parcel deliveries encountered an unprecedented peak. During this time, the Royal Mail Group handled 1.5 billion packages, representing a 16 percent increase compared to 2019, the pre-pandemic level. Rising demand for parcel shipments in the U.K. seems to stay persistent since digital buyer penetration is forecasted to grow to approximately 90 percent of the British population in 2025.