Royal Mail shares fall sharply on concerns over competition

Shares in Royal Mail have fallen by more than 8% after the firm warned that rivals – including Amazon were eating into its parcel delivery business.

Royal Mail has said that the rise of delivery from Whistl could wipe £200m off sales.

It also said that competition was endangering its government-mandated Universal Service, which guaranteed a single price postal service that delivers to all UK addresses.

It has been reported that Royal Mail has had a small fall in pre-tax profits. They dropped £218m for the first six months to 28 September, from £233m in the same period last year.