AO World plc 3rd Quarter Results (5319B)
January 11 2018 - 1:00AM
UK Regulatory
TIDMAO.
RNS Number : 5319B
AO World plc
11 January 2018
11 January 2018
AO WORLD PLC
Q3 TRADING UPDATE
AO on track as it delivers continued revenue growth
AO World plc ("the Group" or "AO"), a leading European online
electrical retailer, today gives a trading update for its third
quarter; the three months to 31 December 2017.
- Our UK business continued to grow: overall UK revenue
increased by 11.4% and ao.com revenue increased by 11.2% year on
year.(1)
- Revenue in our Europe business has continued to grow strongly
- up 58.4% year on year, on a constant currency basis (up 62.0% in
GBP).
- Overall Group Revenue was up 16.6% for the quarter, year on year.
- We expect the Group's performance for the full year to fall
within the range of analysts' expectations but remain cautious
given the uncertain UK economic outlook.
Steve Caunce, CEO, said:
"We have performed well over our peak period delivering further
sales growth across all our territories and are on track with our
long-term strategy.
We are particularly pleased with the double digit sales growth
in our UK business, which has been achieved against a fiercely
competitive environment and normalised marketing expenditure. Our
customers in the UK benefitted from our Black Friday deals this
year over a two week period enabling us to manage demand more
effectively and deliver an even better experience for customers. We
are encouraged by the sales growth in our newer categories and we
have continued to deliver excellent customer service throughout the
period across the business. (2)
Our Europe operations are progressing in line with our plans and
we are pleased with the strong growth achieved, given the limited
above the line marketing expenditure. Our brand is attracting both
new and repeat customers in mainland Europe and customer
satisfaction remains high. (2)
Looking ahead, although we need to be mindful of the uncertain
economic outlook (particularly in the UK), as long as we are
relentless in our focus on making things easy for our customers, we
can be confident that they will continue to choose the AO Way."
For further information, please contact:
AO World plc Tel: +44(0) 1204
Mark Higgins 672403
ir@ao.com
Tulchan Communications Tel: +44(0) 20
Susanna Voyle 7353 4200
Michelle Clarke ao@tulchangroup.com
(1) UK Revenue has grown across all revenue segments, with a
GBP0.7m increase in "Third party sales" and a more significant
GBP1.7m increase in "other sales" predominantly being recycling
income.
(2) As demonstrated by our Net Promoter Scores, an industry
measure of customer loyalty and satisfaction.
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.
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 company news service from the London Stock Exchange
END
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