Royal Mail competition fears trigger share price fall

Competition fears triggered a big fall in Royal Mail shares today as the delivery firm failed to benefit from a sharp rise in annual operating profits.

Royal Mail shares were 5% lower, off 31.75p to 543p, after chief executive Moya Greene highlighted intense competition in the parcels market and warned about the impact that delivery rivals such as TNT will have on the economics of the Universal Service unless Ofcom intervenes.

More: Royal Mail reports profit of £671m

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Royal Mail warns public service at risk without regulation

Newly-privatised Royal Mail has announced a 12 percent rise in full-year profit, but says its business is facing tough headwinds from increasing competition. Bosses are warning that the public service it offers is not sustainable without change.