AO World lifts profit guidance as revenue and earnings rise

UK online electricals retailer AO World has raised its full-year nett expectations aft reporting higher income and net for the archetypal half, contempt inflationary “headwinds”.

For the fiscal twelvemonth ending 31 March 2026, the retailer present anticipates adjusted pre-tax nett to beryllium adjacent to the precocious extremity of its antecedently stated scope of £45m ($59m) to £50m.

In the six months to 30 September 2025, AO World generated gross of £586m, a 14% summation compared with the aforesaid play a twelvemonth earlier.

Operating nett and nett earlier taxation each came successful astatine £18m, representing year-on-year maturation of 7% and 10% respectively.

The retailer's B2C concern recorded a 12% uplift successful revenue, supported by marketplace stock gains crossed each cardinal categories.

AO highlighted higher labour-related costs, noting that increases successful the nationalist minimum wage and National Insurance contributions had a £4m interaction during the half-year period.

The institution besides updated connected its musicMagpie subsidiary, stating that losses had been reduced from £6m astatine the clip of acquisition to an expected £2m for the fiscal twelvemonth 2026, with an “exit run-rate of breakeven”, pursuing what it described arsenic “significant advancement successful integrating, streamlining and simplifying” the business.

AO reported full liquidity of £200m astatine the extremity of the period.

The retailer has precocious introduced Switch24, a rank offering that provides entree to Apple smartphones, including “an iPhone 17 from £17 a month, upgraded each 2 years to the latest model”.

AO added that show of its Five Star rank scheme, which offers benefits to repetition customers, has improved crossed each cardinal indicators successful the half, including renewal rates, subordinate spending and stock of wallet.

AO laminitis and main enforcement John Roberts stated: “We are pleased with the group's advancement successful the archetypal half, with trading somewhat up of our erstwhile expectations, contempt the inflationary headwinds.

"Our strategy is moving and we're arsenic assured arsenic ever astir AO's upwards trajectory.”

"AO World lifts nett guidance arsenic gross and net rise" was primitively created and published by Retail Insight Network, a GlobalData owned brand.

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