UK e-tailer AO World has reported a record-breaking profit before tax of € 53 million for the financial year ending March 31, following the acquisition of musicMagpie and a successful expansion of its Five Star membership scheme. The results exceeded the previously forecast range of € 46 million to € 52 million.
Business-to-consumer growth strengthens
Like-for-like revenue rose by 7 % to € 1.29 billion, with business-to-consumer revenue up 12 % to € 978 million. The improved performance was mainly driven by increased product offerings and enhanced customer retention through the Five Star loyalty programme, the company said.
musicMagpie adds € 35 million revenue
AO World completed the € 11.7 million acquisition of musicMagpie in October. The UK-based recommerce firm, known for trading used consumer tech and media products including Apple iPhones, added € 35 million in revenue for the reporting period. The company said the deal aligns with AO’s sustainability ambitions and supports growing consumer demand for circular technology solutions.
Cashflow and future profit targets
Free cash flow improved to € 27 million, up from €2 4 million the year before. AO World is now targeting a profit before tax of between € 47 million and € 59 million for the current financial year. In the medium term, it aims for a profit margin of 5 %.
CEO highlights record performance
Chief executive John Roberts credited the success to strong customer loyalty and operational efficiency. He noted that AO’s 25th year in business marked “its best yet”, driven by profit records, expanding product categories, and consistent customer satisfaction.
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