Online electrical goods seller still able to report pre-tax profits of £13m in the half year as cost-cutting measures bear fruit

AO World has said consumers are holding off on updating their mobile phones amid the cost of living crisis, a lack of technological innovation and the higher cost of network contracts.

UK consumers bought 13% fewer handsets with contracts in the last six months, forcing AO’s mobile phone business into a loss. Analysts at stockbroker Jefferies said they estimated that the worse than expected mobile phone sales would hit the online electrical goods sellers’ annual profits by about £4m.