Daniel Kretinsky: I can’t make any promises about Royal Mail stamp prices

The future owner of Royal Mail, Daniel Kretinsky, has refused to rule out further price rises for first class stamps.

The billionaire – nicknamed the ‘Czech Sphinx’ – has suggested costs could continue to rise in coming years.

‘I cannot make unconditional promises. “If your circulation is 50 per cent of what it was… you either have to go home or you have to increase the unit price and hope people will pay for it,” he told The Sunday Times.

He added: “Because if not, you will make losses. You can lose for a year or two, but you can’t lose for twenty years. It’s simple math.’

It comes as Royal Mail has periodically increased the cost of stamps to combat weaker demand and rising losses.

The price of a first class stamp has risen from 67p in 2018 to £1.35 today.

Last week, Royal Mail’s parent company, International Distribution Services, accepted a £3.6 billion bid from Kretinsky after he made a series of commitments, including promises on jobs and the UK’s six-day service.

By law, the 508-year-old company must deliver letters six days a week, at the same price. It must also deliver packages in five days. But the results show Royal Mail is losing around £1m a day trying to meet these targets.

However, ministers have expressed concerns about the tycoon. Chancellor Jeremy Hunt said regulators should look “very carefully” at commitments made by Kretinsky, such as the promise not to break up the parent company. The billionaire has acknowledged “intuitive concern” about a foreign entity looking to attack Royal Mail.

“Every strange moment is something that is annoying.” But Kretinsky said he is “confident that we will help the company.” IDS shareholders will vote on the deal at the annual meeting in September.