AO World plc Trading Update (8101M)
11 January 2019 - 6:00PM
UK Regulatory
TIDMAO.
RNS Number : 8101M
AO World plc
11 January 2019
AO World plc, FY2019 Q3 Trading Update
-- Group revenue up by 8.2%
-- UK revenue up by 4.4% and Europe increased by 31.3%
-- Highest sales month ever in November
AO World plc ("the Company" or "AO"), a leading European online
electrical retailer, today gives a trading update for its third
quarter, the three months to 31 December 2018.
AO World remains on track to deliver its long-term strategic
plan and the Board's expectations for the full year remain
unchanged.
Overall Group Revenue increased by 8.2% compared to the same
period last year.
Customers responded positively to AO's UK seasonal Black Friday
offer. This peak trading period continues to be popular with our
customers and we are pleased with our performance. Our offering of
Black Friday deals over a longer time period in November was well
received by customers, sales flow was smoother and our margins
improved. This contributed to overall UK revenue growth of 4.4% for
the quarter.
Revenue growth in our European business was 31.3% for the
quarter on a constant currency basis, (31.2% in GBP). As
anticipated, this was stronger than our Q2 growth rates as we
returned during the period to underlying growth levels following
the impact of changes made to our driver operating model during the
first half of FY19.
As previously announced the Company completed the acquisition of
Mobile Phones Direct Ltd on 17 December 2018, in line with our
strategy broadening the categories offered for sale in our UK
business. The revenue figures in this announcement exclude the
newly acquired entity.
AO World Chief Executive, Steve Caunce, said: "Against a
challenging backdrop, Q3 represents a solid performance across the
AO Group. We are on track with our plans as we continue to provide
a great proposition for our customers. I am particularly proud of
the hard work of the teams in the UK and Europe in this critical
trading period which saw a record numbers of customers choose AO
for their Black Friday and seasonal electricals purchases."
For further information, please contact:
AO World plc Tel: +44(0) 1204 672403
Mark Higgins ir@ao.com
Tulchan Communications Tel: +44(0) 20 7353
Catherine James 4200
Will Smith ao@tulchangroup.com
About AO
AO World plc, headquartered in Bolton and listed on the London
Stock Exchange, is an online electrical retailer, with a simple
mission: to be the best electrical retailer in Europe, by making
things easy for our customers because we care more. We create value
by providing electrical products and related services to our
customers, offering a huge range, a price-match promise and
market-leading customer service.
We sell major and small domestic appliances and consumer
electronics in the UK, Germany and the Netherlands and deliver them
via our in-house logistics business and carefully selected third
parties. We also provide ancillary services such as the
installation of new and collection of old products and offer
product protection plans and customer finance.
In the UK, AO operates in four main categories (Major Domestic
Appliances "MDA", Small Domestic Appliances "SDA", Audio Visual
"AV" and computing) and more recently added Gaming, Mobile, Smart
Home and Photographic devices and equipment to its ranges.
Following the acquisition of Mobile Phones Direct Limited in
December 2018, AO has significantly broadened its mobile phone
offering.
AO launched in Germany in October 2014 with MDA and now sells
Floorcare, AV and SDA categories. AO's international expansion
strategy took a step further in February 2016 with the launch of
MDA in the Netherlands, which has also expanded to include SDA and
AV.
AO also has a majority equity stake in AO Recycling, a WEEE
processing facility, allowing AO to ensure its customers' waste is
dealt with responsibly in the UK.
Cautionary statement
This announcement contains certain forward-looking statements
(including beliefs or opinions) with respect to the operations,
performance and financial condition of the Group. These statements
are made in good faith and are based on current expectations or
beliefs, as well as assumptions about future events. By their
nature, future events and circumstances can cause results and
developments to differ materially from those anticipated. Except as
is required by the Listing Rules, Disclosure Guidance and
Transparency Rules and applicable laws, no undertaking is given to
update the forward-looking statements contained in this document,
whether as a result of new information, future events or otherwise.
Nothing in this document should be construed as a profit forecast
or an invitation to deal in the securities of the Company. This
announcement has been prepared for the Group as a whole and
therefore gives greater emphasis to those matters which are
significant to AO World plc and its subsidiary undertakings when
viewed as a whole.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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