(Alliance News) - AO World PLC on Thursday said it expects interim revenue to surge more than 50%, despite the online electricals retailer being faced with competitor bricks and mortar stores reopening from lockdowns during the half.
AO shares were 14% higher at 265.03 pence each in London on Thursday morning, giving it a market capitalisation of GBP1.27 billion.
AO said it expects revenue for the six months ended September 30 to surge 57% to around GBP715 million. It said UK revenue climbed 54% and Germany revenue jumped 83% on constant currency.
"In our UK retail business, the sales momentum continued from quarter one throughout quarter two despite the reopening of competitor bricks and mortar stores. We believe we have seen a lasting step change in online penetration," AO said.
"During the first half we have seen a change in the behaviour of some customers in our mobile business with increased cashback redemption rates and cancellation of contracts with Networks that have negatively impacted our gross margin. We have changed the mix of our customer proposition to minimise this risk in future."
The company will report on its first half results on November 24.
By Eric Cunha; ericcunha@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
Ao World (AO.)