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Shares in Royal Mail have dropped after the company announced a larger-than-expected decline in letter volumes.

The stock price fell about 11%, after slumping as much as 18%.

“Due to our letter performance to date, we expect addressed letter volume declines, excluding elections, to be in the range of 7-8% for 2018-19,” said Rico Back, CEO of Royal Mail, in a trading update.

“While the rate of e-substitution remains in line with our expectations, business uncertainty is impacting letter volumes. As a result, addressed letter volume declines, excluding elections, are likely to be outside our forecast medium-term range next year.”

Total letter revenue was down 6%, while parcel volumes and revenue both rose by 6%.

However, according to Back, Royal Mail’s outlook was broadly in line with previous predictions that cited the impact of email and new GDPR regulations on volumes.

Source: Yahoo! Finance

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