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Royal Mail GDPR risks unreflected in valuation

Falling letter mailing volumes could be made worse by the introduction of new data protection rules
Royal Mail GDPR risks unreflected in valuation

It’s difficult to forecast what impact the new data protection rules (GDPR) – which require consent from individuals before their personal data can be processed – will have on Royal Mail's (RMG) letter volumes. Management already expects the volume of addressed letters to fall by between 4 per cent and 6 per cent a year, but added in its Q1 update this week that the decline would be at the top end or higher of the given range this year, due to the uncertainty around the new data rules. That's partly because the regulation could result in fewer addressed letters being sent, which Royal Mail can charge more for than unaddressed mail.

IC TIP: Sell at 495p

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