Retailer Results / AO



Full Year Results
Full year results for the year ended 31 March 2016

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Trading Update
Q3 - 3 months to December 2015


The Q3 trading update was light on detail with more to follow. However, the UK business continued to grow across all categories, with revenue increasing by 35 per cent year on year with the UK up by 24 per cent. Black Friday was highlighted as having been a success.

There was development of the Audio Visual and Small Domestic Appliances categories in the UK.

In Germany the exit run rate revenue for December gave an annualised revenue of €77m, up from €61m in September.

Group performance remains in line with expectations.

Steve Caunce, Chief Operating Officer, said: "AO World continues to make progress on its long term plan; delivering sales growth across all categories and more customers enjoyed our excellent proposition.

"In Germany we made further progress and are proud of how our culture has translated and thank the German team for continuing to delight customers with the experience.

"Looking ahead, we remain confident that we will deliver for the benefit of both our customers and our investors and remain on track to deliver our long term strategy."



Trading Update
Unaudited financial results for the six months ended 30 September 2015


• Total revenue for the period increased by 21.7 per cent to £264.3m (2014: £217.1m)
• AO website sales for the UK up 23.7 per cent to £214.8m (2014: £173.7m), with total UK revenue up 14.5 per cent to £248.6m (2014: £217.1m); a further gain in market share
• Europe (exc. UK) annualised exit run rate revenue of €61.2m (based on September sales) Europe revenue for the period was €21.7m (2014: €nil)
• Group operating loss of £8.9m (2014: £0.9m profit) reflecting the ongoing investment in German operations and start-up costs in further Europe territories of £0.9m (2014: £3.3m)
• UK adjusted EBITDA of £5.1m (2014: £7.3m), with UK adjusted EBITDA margin decreasing to 2.0 per cent (2014: 3.4 per cent)
• Europe adjusted EBITDA loss of £9.6m (2014: £nil) representing trading losses in European territories from launch bringing Group adjusted EBITDA to a loss of £4.5m (2014: £7.3m profit)


Revenue continued to grow strongly with overall Group revenue up 21.7 per cent year on year to reach £264.3m (2014: £217.1m). AO website (including eBay branded store) contributed £230.5m to the Group revenue figure, an increase of over 32 per cent year on year (2014: £173.7m).

Overall AO branded website sales (which include, and AO branded eBay shops) now account for 87.2 per cent of total Group revenue (2014: 80.0 per cent).

UK adjusted EBITDA has decreased to £5.1m for the first 6 months of the year (2014: £7.3m), with the reduction primarily due to increased marketing spend and inefficiencies in logistics and call centre operations.

The Europe segment continued its start-up phase, with investments being made for the future as the German operation builds scale and we absorb preparatory costs for new territories. Europe adjusted EBITDA loss for the period was £9.6m and overall Europe operating loss was £10.2m.

John Roberts, Chief Executive Officer said: “AO World has made good progress in the first half, continuing to deliver on our long-term strategy. We have continued our mission to redefine retailing in our chosen categories, and we are winning market share in all those categories. The AO branded UK retail business has increased revenue by 23.7 per cent, showing a marked improvement in the second quarter of the year compared to the first. Our brand awareness has increased significantly following successful investment in marketing; bringing in new customers and helping us improve repeat business metrics.”

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