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AO.com narrows losses for FY 2018/19

AO World has posted a reduction in operating loss to £15.2 million (down from £16.2 million in 2018). The electricals retailer also revealed a reduction in EBITDA losses from £3.4 million last year to £0.4 million for its year ending 31 March 2019. UK EBITDA increased 20.9% to £27.4 million, while EBITDA losses increased in Europe from €29.6 million to €31.3 million, attributed to less progress made on product margins and cost pressures from driver schedules in Germany.

Meanwhile, revenue for both UK and Europe is on the up, increasing by 13.3% to £902.5 million. UK revenue increased 10.1% to £749.3 million, while European revenue increased 32.2% to €173.3 million.

The retailer stated it grew its customer base to almost 6.5 million in the UK and nearly 800,000 in Europe. Meanwhile, AO also established a B2B arm to grow clients in a number of industries including housebuilding and charities.  

“The AO model is an ecosystem of complementary competencies across retail, mobile, recycling and logistics through to financial services and B2B trade. We have huge structural advantages when these capabilities operate in harmony,” said John Roberts, AO founder and CEO of AO World who stepped back into the role at the beginning of 2019.

“So, we have enhanced structure with informality and a renewed mindset and are now releasing the immense unrealised value we've created. We've started to see this in the last few months and it will be an important driver for the year ahead.”

He added: “Overall, the AO team deserve praise for their efforts in FY19 but we can do better and I'm pleased with the progress that we are now making in the first few months of this financial year. I'm proud to be back at the helm of the business I founded almost two decades ago and I'm more excited than ever about the future for AO."

Back in April, AO.com introduced augmented reality (AR) technology on its product pages across the website.

The technology allows customers with iOS devices to check how electricals such as televisions will look like in their homes. It will help shoppers asses the size and colour of products, with the first product to have the technology made available being the Samsung 55” TV.