Royal Mail missed its delivery targets in the first quarterly update since its parent company was bought by Czech billionaire Daniel Křetínský, figures show. The company delivered 75.9% of first class mail within one working day in the three months to 29 June, up from 74.2% the previous quarter but well short of the 93% target set by Ofcom.
Second class performance was broadly stable, with 89.3% delivered within three working days, lagging the regulator’s target of 98.5%. Royal Mail has been fined more than £16m over the past two years for missing targets, and Ofcom began an investigation this year after annual targets were missed.
EP Group, controlled by Křetínský, completed a drawn-out £3.6bn takeover of International Distribution Services in April after a UK government review under national security laws. Last month, Ofcom gave Royal Mail the green light to drop Saturday deliveries of second-class letters and to provide services on alternate weekdays from Monday to Friday, as it attempts to cut costs.
Ofcom also lowered next-day delivery targets for first class from 93% to 90% and for second class within three days from 98.5% to 95%, effective from April 2025. Tom MacInnes, director of policy at Citizens Advice, criticised the changes, saying they risk making things worse for consumers who have suffered late deliveries and soaring stamp prices.
Emma Gilthorpe suddenly left as Royal Mail’s chief executive in June, weeks after EP completed the takeover. Jamie Stephenson, interim chief operating officer, said the company is taking targeted steps to improve reliability.
