UK online electricals retailer AO World raised its full-year profit expectations after reporting higher sales and earnings for the first half. Revenue for the six months to 30 September 2025 was £586m, a 14% increase, with operating profit and profit before tax growing by 7% and 10% respectively.

AO World’s B2C business saw a 12% revenue increase, driven by market share gains in key categories. The company highlighted higher labour-related costs due to national minimum wage and National Insurance increases, impacting profits by £4m in the first half.

AO World’s musicMagpie subsidiary reduced losses from £6m to an expected £2m for fiscal year 2026. The company reported total liquidity of £200m at the end of the period and introduced Switch24, offering Apple smartphones with membership benefits like an iPhone 17 from £17 a month.

Founder and CEO John Roberts expressed satisfaction with the company’s progress, stating that trading was slightly ahead of expectations despite inflationary pressures. AO World’s strategy is proving successful, leading to increased confidence in the company’s future trajectory.

Read more at Yahoo Finance: AO World lifts profit guidance as revenue and earnings rise