UK's mailing services has been able to increase the total number of parcels handled to more than 115 million parcels during the month of December that allowed it to surpass the previous year.

The total number of parcels handled by the service increased as customers increasingly shopped on the internet. The company also said that its parcel revenue also rose eight per cent in the nine months to 29 December, 2013. The service had introduced size-based pricing but volumes remained similar as it delivered lesser big consumer items.

A Royal Mail spokesman said, "Christmas cards are very much alive and well." But that failed to arrest a 3 per cent fall in total letter revenue as people use email and do more business electronically."

The company said that the number of letters delivered fell by 5 per cent in the nine months to December, compared to 6 per cent during the six months to September. Royal Mail's shares increased more than 80 per cent since its debut on 15 October, 2013. The mailing service now has a market capitalisation of as much as £6 billion.