Published on April 6th, 2018 | by The GC Team1
AO expects full-year revenue increase but losses continue
AO World has announced that trading for the year to 31st March 2017 is expected to fall within the range of current market forecasts.
Group revenue is expected to be c.£796m, slightly above the mid-point of analysts’ expectations, and up c.14% year on year. Group Adjusted EBITDA loss is predicted to be around the middle of the range, at c.-£4.2m.
Overall UK revenue for the year is expected to be c.£680m, up 8% year on year with revenue from AO.com of c.£606m, up c.9% year on year. The company said growth in Q4 was achieved in what remains a competitive market, with limited advertising spend.
“When compared to this period in the previous year we have undertaken relatively less promotional activity, which has supported gross margin.”
In Europe, revenue growth of c.55% for the year in local currency is expected. AO said operations in the region are on trajectory to achieve targets in its existing territories in FY21.
“As a result of our strong momentum we have now reached an inflection point in the financial performance in these existing Europe operations and expect to see further progress as we move forward,” the company said in a statement.