Published on November 19th, 2019 | by The GC Team0
AO closes loss-making Netherlands operation
AO World today announced the closure of its loss-making Netherlands operation as it reported Group operating losses of £10.6m for the six months ended 30 September 2019.
John Roberts, AO Founder and Chief Executive Officer, said the move will enable the Group to concentrate on the transformation of its German business.
Total Group revenue for the period increased by 16.3% to £470.1m, up 3.2% on a like-for-like basis excluding revenues from the recently acquired AO Mobile.
UK revenue rose 20.3% to £402.7m, up 4.5% on a like-for-like basis excluding revenues from the mobile business.
Revenue in Europe fell 3.4% to €75.7m as the European operating model was realigned with the company’s UK policy.
“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,” Roberts commented.
“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.
“Our relentless focus to accelerate profitability in Europe continues, and as part of this we have today announced the closure of our Netherlands operation.
“This will enable us to concentrate on the transformation of our German business, where we have increased confidence in, and visibility of, the three core drivers of the business model that will put us on the path to profitability.”