AO World is pinning its hopes on the World Cup to boost TV sales.
England got off to a strong start this week with a 6-2 win over Iran, raising hope that the Three Lions could do well in the tournament.
And AO founder and chief executive John Roberts said that England’s advance to the later stages of the World Cup is likely to support demand for TVs.
Football fever: AO founder and chief executive John Roberts said England’s entry into the later stages of the World Cup is likely to boost demand for TVs.
“Any World Cup gives our business a really positive boost in terms of selling things like TVs,” he said.
‘Farther [England] to participate in the competition, as a rule, the more TVs we sell.” JSC stock increased by 16.8%, or 8.8 pence, to 61.15 pence.
The start of the World Cup follows a difficult first six months of the year for AO, with the large home appliance market down 11% from 2021.
The downturn in the electrical market, together with measures taken by AO to streamline its business, saw revenue fall 17% to £546m in the six months to September.
The group’s losses also tripled to £12 million during this period. In yet another warning, the AO said its business will continue to suffer from the cost-of-living crisis and falling consumer spending.
But the Bolton-based company said it plans to focus on the UK market and scale back business.
It is in the process of winding down operations in Germany.
AO said sales for the year should be in line with forecasts and earnings should be better than expected.
The group also wants to strengthen its position in the TV, laptop, audiovisual and small home appliance markets.
“During the first six months of the year, we made good progress on our strategic realignment as we focused on profitability and cash generation, all of which are delivering the results we expect,” said Roberts.
“We have now closed the unprofitable and cash consuming portions of our operations, meaning that the remaining UK business is cash generating and are successfully closing our German business with minimal cash impact on the wider group.
“I am pleased with this progress, especially against the background of an extremely difficult macroeconomic situation.”
Credit: www.thisismoney.co.uk /