Published on November 21st, 2017 | by The GC Team0
AO half-year losses widen
AO Group today reported a total operating loss of £12.0m for the six months ended 30 September 2017, compared to a loss of £2.8m for the same period last year.
The retailer said the result followed increased UK brand expenditure and, in line with strategy, investment in Europe.
Total revenue for the period increased by 13.3% to £368.0m as UK and European growth both continued. “UK growth continued to be resilient against a backdrop of a weaker macro-economic environment and strong comparables,” the company said.
AO website sales in the UK grew 9.9% to £282.5m. Total revenue for the region was up 7.4% to £316.8m.
European revenue for the period increased by 60.5% to £51.2m.
The Group recorded adjusted EBITDA losses of £6.3m, against a £1.5m profit in the same period last year.
Chief Executive Officer Steve Caunce said: “AO has made a good start to the year. We are broadly on track with our plans for the year as a whole, with the positive impact of improving sales growth through the first half of the year combined with the first-half biased phasing of our marketing spend, in spite of the challenging UK market conditions.”
Caunce added that the Group’s European operations continue to perform in line with the plan previously set out.
The company said its outlook for the full year “remains within the range of market expectations for adjusted EBITDA towards the lower end, reflecting the continuing momentum in our UK business, despite challenging market conditions and the adverse impact of foreign exchange rates on the translation of our European operations’ reported performance.”