Royal Mail owner International Distribution Services PLC (LSE:IDS) reported a 0.8% rise in revenue £3.7 billion for the three months ending December, driven by increased international parcel volumes over the key Christmas period.
Despite challenging market conditions in the UK, the company reiterated its expectation of returning to underlying profitability this financial year (excluding voluntary redundancy costs).
Chair Keith Williams said: "There remains more to do and further investment will be required to continue on this path."
Separately, IDS confirmed that its £3.57 billion takeover by Czech billionaire Daniel Kretinsky has secured regulatory approvals in both the European Union and the United States.
This follows clearance from the UK government in December, with the deal expected to complete in the first quarter of the year.
Upon completion, IDS will be delisted from the London Stock Exchange.
The company also reiterated that rising costs, partly driven by Rachel Reeves' Budget, may lead to further price increases and a push for greater automation to manage expenses.