AO World bets on the World Cup to boost TV sales

AO World pins its hopes on the World Cup to boost TV sales.

England got off to a flying start this week with a 6-2 win over Iran, fueling hopes that the Three Lions could enjoy a good run in the tournament.

And AO founder and CEO John Roberts said England’s progress in the later stages of the World Cup is likely to bolster demand for TVs.

“Every World Cup gives our business a really positive momentum around selling things like TVs,” he said.

‘How further [England] going into the competition, normally the more TVs we sell.’ AO shares rose 16.8 percent, or 8.8 pence, to 61.15 pence.

The start of the World Cup followed a difficult first six months of the year for AO, with the large home appliance market collapsing by 11 percent compared to 2021.

Downturns in the electricity market along with measures taken by AO to streamline its operations saw sales fall 17 per cent to £546 million in the six months to September.

The group’s losses also tripled to £12m during that period. In a further warning, AO said its business would continue to take the hit from the cost-of-living crisis and fall in consumer spending.

But the Bolton-based company outlined plans to focus on the UK market and scale down the business.

It is winding down its activities in Germany.

AO said sales for the year should be in line with forecasts, while earnings should beat expectations.

The group also wants to strengthen its position in the field of televisions, laptops, audiovisual equipment and small household appliances.

“During the first six months of the year, we made good progress with our strategic realignment as we focused on profitability and cash generation, all delivering the results we expected,” said Roberts.

“We have now closed the loss-making and cash-intensive parts of our business, meaning the remaining UK business is cash-generating, and we are successfully closing our German business with minimal cash impact for the wider group.

“I am pleased with this progress, especially against the background of an extremely difficult macroeconomic environment.”