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By Neil Maidment LONDON (Reuters) - Britain's Royal Mail Group said it would have to rely on cost control measures and letters sales to meet full-year expectations after rising competition meant parcels revenue would be lower than anticipated. The postal firm, sold off to much controversy last October in Britain's biggest privatisation in decades, said on Tuesday group revenue for the three months to June 29 had risen 2 percent, led by a better-than expected performance in its letters arm. In parcels, where the firm already generates half of its turnover and sees as its growth driver, the firm said its performance was hit by increased competition at home and in its export market, which also suffered from the impact of a stronger pound. Battles around price and delivery hours are intense, while the decision of Amazon Inc, Royal Mail's single biggest customer, worth six percent of sales, to launch its own delivery service in the past year has been a blow to the group.