CEO Seeks Profitable Deal with Network Providers
- AO World considering closing loss-making mobile contract business
- CEO John Roberts seeks profitable deal with network providers
- Mobile business impacting profits and goodwill
- Adjusted pre-tax profits up 27% to £44m for the year
AO World is considering shutting down its loss-making contract mobile phone business if it fails to secure a more profitable deal with network providers within the next couple of months. CEO John Roberts stated that the retailer is not walking away from mobile as a category but would close the contract business if a successful solution cannot be reached. The company’s mobile business has underperformed and negatively impacted profits due to increased competition, leading to a £19.6m impairment in goodwill and intangibles. Despite this, AO World reported a 27% increase in adjusted pre-tax profits to £44m for the year ending March 31st, driven by a 9% rise in group sales to £1.13bn.
Factuality Level: 8
Factuality Justification: The article provides accurate information about AO World’s contract mobile phone business situation, quotes from the CEO, and discusses the reasons behind the potential closure of the business. It also includes relevant financial details such as profits and sales figures.
Noise Level: 2
Noise Justification: The article provides relevant information about AO World’s consideration to close its contract mobile phone business due to poor performance and reduced margins. It also mentions the impact on profits and goodwill. The article stays focused on the topic without diving into unrelated territories.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses AO World’s contract mobile phone business performance, which impacts the company’s financials, but does not mention any direct impact on financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.
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