Following today’s release of AO’s figures for the 12 months ending 31 March 2026; Oliver Maddison, retail analyst at GlobalData, a leading intelligence and productivity platform, offers his view: “AO remains one of the leading electricals players in terms of revenue growth, with total group revenue expected to have grown around 11% in FY2025/26, bolstered by the acquisition of musicMagpie in December 2024. These results suggest that the second half of the year was more challenging for the online specialist (given total revenues grew 14.4% in H1), although still substantially above the market average, as consumers sought to make savings around the festive season, amid resurgent inflation. Investors were nonetheless encouraged by AO’s strong performance, as well as adjusted profit before tax being expected to perform towards the top end of guidance, with AO’s share price rising by around 8% in early morning trading.”
“AO’s estimated B2C revenue growth of 9.5% was among the electrical sector’s best performances, with much of this growth driven by innovation in its services space. AO’s Five Star membership programme has been an impressive revenue driver since its inception in 2022. Its Switch24 programme, which utilises its interest-free credit offer to allow Five Star members to split the cost of a new iPhone over two years and subsequently upgrade to the latest model, will have boosted revenue by encouraging earlier upgrades and enticing more consumers to sign up to its Five Star programme. AO must ensure that its focus on enhancing services continues to drive electrical sales, treating them as complementary parts to its wider proposition; it can do this by safeguarding promotional activity, with member-exclusive discounts targeted to help it win share from competitors in areas where it underindexes, such as laptops and personal care electricals.
“Although AO’s B2B wing and its network commission revenue will have declined as the group rationalised its organisation for profitability, the impending launch of AO Mobile could afford AO a more profitable position within the mobile space (especially in conjunction with Switch24). Currys cannot afford to rest on its laurels as AO expands in this space, with this development a significant threat to iD Mobile.”
