Ao.com doubles EBITDA in first half as revenues surge 25.1%

Ao.com recorded an adjusted EBITDA of £7.3m for the six months ending September, up 115% from the year ago period.

Total revenues increased by 25.1% to £217.1m during the period, while adjusted operating profits increased by 134% to £5.5m.

The electrical appliances etailer’s German launch, its first entry into an international market, resulted in set up costs of £3.3m.

Ao.com also paid out £1.3m in bonuses to senior executives during the period, having not paid out anything last year.

Ao.com chief executive John Roberts said: “The UK growth was delivered at the same time as management resource was also focused on launching our proposition in Germany, which we achieved in October some six months earlier than promised.

“This launch has given us confidence in our ability to replicate our model overseas. While this accelerated investment has brought forward our associated set-up costs for the period, our focus is on the long-term as we proceed with our strategy to deliver a market-leading proposition in new categories and countries.”

Ao.com launched its German business on October 1 with its first customer deliveries on October 14.

Roberts said the company was “delighted” with initial sales growth in Germany and added trading for the second half of the financial year had started well.

It has also launched a consumer finance offer in the UK to allow it to reach more customers and it is broadening its product range, which included the launch of an audio visual offer in May.