Online Electricals Retailer AO World Pulls Out of The Netherlands Amid £6.2m Losses

  • AO World reports an underlying loss of £6.2m compared to £5.4m last year
  • The company plans to close its operations in The Netherlands by early next year
  • Like-for-like sales increased by 4.5% resulting in underlying interim earnings rising from £6.9m to £7.8m
  • Adjusted EBITA losses increased to £13.6m (€15.9m) from £11.8m (€13.8m) last year
  • The focus will be on turning around its business in Germany following the European division

AO World, an online electricals retailer, has reported an underlying loss of £6.2 million compared to £5.4 million last year, leading the company to pull out of The Netherlands, less than four years after its launch. The half-year report for the period ending 30 September also showed a statutory pre-tax loss of £5.9 million, up from the £10.9 million loss it posted in 2018. Like-for-like sales increased by 4.5%, resulting in underlying interim earnings rising from £6.9 million to £7.8 million. Despite the increase in Adjusted EBITA losses to £13.6 million (€15.9 million) from £11.8 million (€13.8 million) last year, the Netherlands operation made an adjusted EBITDA loss of £2.4 million in the six months to 30 September 2019. As a result, the online retailer plans to close its operations in the country by early next year and focus efforts on turning around its business in Germany following the European division. AO founder and CEO, John Roberts, said: ‘There are encouraging green shoots of profitable growth across our UK business, including within our core MDA offer and we will continue to invest to drive this further. This will enable us to concentrate on the transformation of our German business, where we have increased confidence in, and visibility of, the three core drivers of the business model that will put us on the path to profitability.’

Factuality Level: 8
Factuality Justification: The article provides accurate information about AO World’s financial performance and its decision to pull out of The Netherlands while focusing on Germany. It includes relevant data such as losses, sales figures, and the CEO’s statement.
Noise Level: 3
Noise Justification: The article provides relevant information about AO World’s financial performance and its decision to exit The Netherlands market while focusing on Germany. It includes specific numbers and quotes from the CEO. However, it lacks in-depth analysis or exploration of long-term trends or consequences for stakeholders.
Financial Relevance: Yes
Financial Markets Impacted: AO World’s stock price and investors may be impacted by the announcement of pulling out from The Netherlands and focusing on Germany.
Financial Rating Justification: The article discusses financial results, losses, and changes in business strategy for AO World, an online retailer, which can affect its stock price and potentially impact investors. It also mentions plans to exit a market and focus on another one, which could have implications for the company’s performance and 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 this article.

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