AO.com grows revenue but swings to loss in first half
Online domestic appliance retailer AO World grew its revenue by 21.7% to Â£264.3 million in the six months to 30 September.
AO website sales for the UK climbed by 23.7% to £214.8 million while total UK revenue was up 14.5% to £248.6 million as the retailer made a further gain in market share.
However, the group reported an operating loss of £8.9 million compared to a £0.9 million profit in the same period last year. AO said this was a reflection of ongoing investment in its German operations and start-up costs in further Europe territories.
AO also announced that it will begin trading in the Netherlands in 2016 and will also open a new regional office and distribution centre in Bergheim in Germany which will provide approximately 35,000 square metres of warehouse space.
John Roberts, chief executive of AO World, said: “In Germany, our first international market, we are continuing to build scale and remain confident that our business model and customer proposition are working as well on mainland Europe as they have in the UK. Our confidence means that we are now ready to move into the Netherlands, helping to leverage our German asset, and we continue to review other adjacent markets.”
Looking ahead, Roberts said: “It is clear that the momentum we built in the second quarter has set us up well for the full year. We remain as confident as ever that the market dynamics are moving in our favour as a pure-play digital operator in a market where customers continue to move rapidly online and our excellent service will only accelerate this. Against that backdrop we are well placed to deliver sustainable long-term growth."
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