Loss-making Netherlands business set to close
AO World has announced its unaudited interim financial results for the six months ended 30 September 2019
AO reported a 16.3 per cent increase in revenue over the period to £470.1 million, up from £404.2m in 2018. Excluding revenues from its newly-acquired AO Mobile business, revenue rose 3.2 per cent on a like-for-like basis.
Total UK revenue rose 20.3 per cent in this time to £402.7m (it was £334.8m in 2018), or 4.5 per cent excluding AO mobile. Revenue from the Group’s European business fell 3.4 per cent to £67.4m.
It’s operating loss for the period was flat on the same period last year.
“These results were achieved during a period of significant change for the business where we were focused on laying the foundation for disciplined, long-term growth,” said John Roberts, AO Founder and Chief Executive Officer.
“There are encouraging green shoots of profitable growth across our UK business, including within our core MDA offer and we will continue to invest to drive this further.”
Indeed, UK product revenue grew by 6.8 per cent for the half year, and UK MDA sales were up 5.5 per cent against the comparable prior year period.
AO Finance was also launched during this period to offer customers additional purchasing flexibility.
The online retail giant also announced the closure of its Netherlands business, as the Group reported an operating loss of £10.6m for the first half.
Mr Roberts said this was part of the business’s “relentless focus to accelerate profitability in Europe” and would allow it to “concentrate on the transformation of our German business”.
He added: “Our ecosystem of complementary products and services continues to strengthen, providing us with the belief that these can be leveraged to underpin future growth and profitability in the UK.
“Overall, I am pleased with the operational progress that we have made in this period and would like to thank AOers across the business for their continued commitment.”