Following today’s release of AO world’s figures for the six months ending 30 September 2025; Oliver Maddison, retail analyst at GlobalData, a leading data and analytics company, offers his view: “AO continued its sector-leading performance in its H1 FY2025/26, delivering on its previously stated target of double-digit revenue growth (both for total revenue and B2C revenue) on top of strong comparatives, while further uprating its profit guidance to the top end of its £45-50m range. This comfortably places AO as the best-performing player in the market as its widening range increased its appeal across categories, while its Five Star membership scheme drove repeat customers. Indeed, Currys’ 3% like-for-like growth in the UK and Ireland for the 17 weeks to 30 August seems pedestrian by comparison. The news was well-received by investors, with AO’s share price jumping around 5% in early morning trading.
“AO launched its innovative new Switch24 proposition during the period, which allows Five Star members to split the cost of a new iPhone over the course of two years, with the option to upgrade to the latest model at the end of the period. The programme integrates its Five Star membership and interest-free credit schemes, which should increase uptake of its membership scheme and therefore create additional sales from newly converted consumers making the most of their membership. The upgrade aspect of the scheme will, in time, also likely support the stock of its resale offering via the streamlined musicMagpie as it makes upgrading less costly for consumers, increasing the stock of secondhand iPhones available to the retailer.
“While AO’s B2C business continued its strong organic growth, the other key driver of total revenue growth was the resale side of the business, which saw 863.6% growth, largely as a result of the acquisition of musicMagpie. Without the acquisition, total group revenue would likely have grown by c.5%, reflecting the fact that B2B and network commission revenue declined by 22.7% and 26.1% respectively as AO sought profitability at the expense of volume growth. While AO attributed the decline in B2B sales to a move away from contracts that do not meet new profitability thresholds, Currys’ double-digit growth in the category indicates that AO may have taken this policy too far. Meanwhile, the decline in network commission revenue came as a result of altered terms with networks, making its mobile business, which it previously discussed shuttering, sufficiently profitable. No mention was made of the AO’s intention to launch a mobile network, indicating that the altered terms of its contracts with O2 and Vodafone-Three may have altered the necessity of such a move.”
