UK's AO World profits hit record, expects continued growth

AO World Achieves Record Profits and Anticipates Ongoing Growth

By Yamini Kalia

(Reuters) -AO World's chief executive said on Wednesday he expects the British electronics retailer to maintain its growth momentum this year after strong sales from returning and new customers boosted fiscal 2025 profit to record levels.

"The electronics retailing business has been having a price war for the last 25 years and so it is about as brutal as it gets," CEO John Roberts told Reuters, noting that robust performance has continued into early fiscal 2026.

AO World, which offers discounted prices on products via its membership program, is benefiting from its customer-facing business amid rising inflation and higher costs for employers.

Shares fell 3.2% in morning trading after opening nearly 5% higher.

"There's no upgrade today, but again, there's nothing negative in the messaging (of AO World)," said Peel Hunt analyst John Stevenson.

Rival electricals retailer Currys raised its annual profit outlook for the third time this year in May as rising sales offset growing costs.

AO World said it might close its non-core mobile sites as the segment falls short of expectations due to customers moving away from post-pay connections. 

"I don't want areas of our business that lose money. So if we cannot find a way to make that make money, then we will either fix it or close it," Roberts said.

Over the next six to nine months, he said AO World plans to launch its own mobile service on its website and offer better financing options to customers. 

The company, which sells everything from washing machines to mobile phones, reported record adjusted pre-tax profit of 43.5 million pounds ($58.52 million) for the year through March, ahead of last year's 34.3 million pounds.  

($1 = 0.7433 pounds)

(Reporting by Yamini Kalia in Bengaluru; Editing by Rashmi Aich and Bernadette Baum)