AO.com revenue soars but full-year loss expected

Sales are expected to be up in the 12 months to March 31, but EBITDA guidance has been tightened to between break even and a £2.4m loss.

The etailer is ploughing cash into its European markets in a bid to fuel growth.

In the UK, revenue is expected to be around £629m. Own-brand revenue is expected to rise 16%.

AO also raised £50m capital through a share placing this morning.

It said the funds would underpin its further growth prospects, including international expansion and introducing new categories, and provide AO with the flexibility to react to “market opportunities and changes”. 

New chief executive Steve Caunce said: ”The strength in our UK business and our investment in mainland Europe have positioned us well for the future, and this will be further strengthened by the capital raising.”

New category

The etailer launched its new computing category in the UK, which it said was “trading well”.

AO said that it continued “to be cautious given the uncertain UK economic outlook, currency impacts on supplier pricing and the possible effect on consumer demand”.

The retailer added that the UK side of the business would continue to benefit from economies of scale and increased brand awareness as it expanded.

In Europe, revenue is expected to be £71m. AO consolidated its German operations during its first half and launched its audio-visual category in that market. It started to trade in the Netherlands this month.

AO founder John Roberts stepped down from his chief executive role earlier last month, handing the job to former chief operating officer Caunce.

Roberts remains on the board as founder and executive director.