AO World's losses narrow
Appliance retailer AO World has seen its first half group operating losses narrow slightly to £11.7 million from £12 million in the same period in the previous year.
In the six months to the end of September, group adjusted EBITDA losses reduced to £5.4 million from £6.3 million last year. Meanwhile, total revenue increased by 9.9% to £404.2 million in the period despite a “tough” trading environment in UK and Europe.
Steve Caunce, AO chief executive, said: "This has been a half of continued delivery against our long-term strategy, thanks to a strong offer for customers.
“While our core UK and Germany MDA markets have been challenging, with the UK MDA market becoming tougher than expected, we take encouragement that we are at least maintaining market share in this core category in the UK and growing significantly in Germany.”
AO said its plan to widen its range of online electrical items and add new complementary ranges had proved successful in the first six months of the year, with newer categories such as audio visual and computing performing particularly well.
It is also strengthening its customer offer through the acquisition of the online-only mobile phone retailer, Mobile Phones Direct.
Looking ahead, Caunce said: “Our peak trading period began on 9 November with the launch of our biggest ever Black Friday and I remain confident of achieving long-term sustainable growth across the group. We expect full year results to fall within the range of board expectations, albeit more second half weighted than previously anticipated."
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