3rd Quarter Results

RNS Number : 9576T

AO World plc

12 January 2017

 

12 January 2017

AO WORLD PLC

Q3 TRADING UPDATE

CONTINUED GROWTH AND STRATEGIC PROGRESS

AO World plc ("the Group" or "AO"), a leading European online electrical retailer, today gives a trading update for its third quarter; the three months to 31 December 2016.

-      Our UK business continued to grow: ao.com revenue increased by 10.3% year on year and our overall UK revenue by 8.9%, against tough comparators from the same period last year.

-      In Europe revenue for the period was up 28.4% year on year, on a constant currency basis, reflecting a period of focus on building our logistics capabilities, capacity and a solid base for the business.

-       Overall Group Revenue was up 12.3% for the quarter, year on year.

-      We expect the Group's performance for the full year to fall within the guidance previously given¹ but remain cautious about the final quarter given the uncertain UK economic outlook, currency impacts on supplier pricing and the possible effect on consumer demand.

John Roberts, CEO, said:

"AO continues to make progress on its long term plan; delivering sales growth across all categories and territories, and convincing more customers to experience the AO Way.

We performed well over our peak period, particularly through Black Friday, with the sheer dedication of our teams enabling us to deliver to our customers as promised.

We also delivered strategic progress during the quarter. We launched computing in the UK, and audio-visual in Germany, retailing both these categories the AO Way - offering a simply better customer experience, executed brilliantly by a brand and team that customers and suppliers trust.  Early trading in computing has been encouraging and sales are building as we invest in attracting traffic to the category on ao.com, while both our businesses in Europe continue to gain traction and delight customers.

Looking ahead we have three months left of the current financial year and are mindful of the uncertain economic outlook.  However, we remain confident that our market leading proposition will continue to drive customers to experience the AO Way and enter the New Year excited by the opportunities ahead."

For further information, please contact:

AO World plc Mark Higgins	Tel: [phone] [e-mail]
Tulchan Communications Susanna Voyle Michelle Clarke	Tel: [phone] [e-mail]

 

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¹ Our previous guidance for Group Revenue (using the exchange rate applicable at the time) was £700.3m-£735.9m with Group Adjusted EBITDA of £2.4m losses to £4.7m for the full year.

 

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