AO World post strong third quarter results as it says it is on track to launch in the Netherlands

 
James Nickerson
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Caumce said AO World continues to make progress on its long term plan

Electrical specialist AO World has reported revenue growing in the third quarter as it says the company is on track to launch in the Netherlands and progress has been made in Germany.

The figures

The company reported that UK revenue for the three months to the end of December were up 24 per cent year-on-year.

Meanwhile, ao.com's revenue increased by 35 per cent year-on-year.

In Germany AO World said annualised revenues in December were €77m (£57.75), up from €61m in September.

Why it's interesting

AO World had a challenging 2015, having issued a profit warning that caused its share price to plummet. The company struggled to regain investor confidence as the year continued.

However, despite a tough trading period over Christmas for many UK retailers, AO World posted strong third quarter results.

Read more: European expansion costs turn profit to loss at AO World

The company said it was "pleased with the performance of the business through Black Friday week, drawing from the insights of 2014". Importantly for the company, it found that customers were increasingly recognising ao.com as a destination, especially given the company has been continuing its drive to improve customer awareness.

Read more: AO World's upbeat outlook fails to warm investors

AO World said that it has continued to deliver against its long-term strategy. In particular it points out the development of the Audio Visual and Small Domestic Appliances categories in the UK, as well as continuing research in further categories.

Meanwhile, the company said it is on track to launch in the Netherlands in spring 2016.

What AO World said

Chief operating officer Steve Caunce 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 ao.de 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.

In short

While a number of retailers struggled over the Christmas period, AO World posted strong third quarter results and said it is on track to launch in the Netherlands.

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