Royal Mail beats profit expectations on tight cost controls

(Reuters) - Britain's Royal Mail Plc (RMG.L) reported a better-than-expected profit for the financial year, as tight cost controls more than made up for losses due to high competition in the UK postal market.

The former postal monopoly said adjusted operating profit before transformational costs rose 5 percent to 742 million pounds in the year ended March 27. Analysts on an average were expecting 727 million pounds, according to a company-compiled consensus.

Royal Mail handled 4 percent fewer addressed letters in the year, a smaller decline than it had forecast, largely due to the return of direct delivery volumes, it said on Thursday.

(Reporting by Esha Vaish in Bengaluru; Editing by Sunil Nair)