AO.com has slipped further into the red despite increased sales as Britain’s Got Talent marketing costs and the weak pound bit into its bottom line.

The online electricals specialist posted a group adjusted EBITDA loss of £3.4m in the year to March 31 against a £2.1m loss the previous year, while its group operating loss widened to £16.2m from £12m the previous year.

The etailer, which recorded a 13.6% rise in total revenue during the period to £796.8m, attributed its widening losses to higher marketing costs in its UK market and “a consistently competitive pricing environment”.

Chief executive Steve Caunce said the retailer remained on track to become profitable in three years.

AO’s total UK revenue rose 8.1% to £680.8m, which the retailer heralded as “resilient against a backdrop of a weaker UK electricals market and strong comparables”.

The online electricals specialist’s European revenue increased 54.8% on a constant currency basis to £116m.

The etailer launched a transactional mobile app across all its territories during the period and was one of only 20 UK companies to score “great” or “excellent” in 95% of 100,000-plus reviews.

Caunce said: “Over the year we have continued to evolve our purpose to ensure it is suitable for the AO of today: to have the happiest customers by relentlessly striving for a better way.

“Our consistently high NPS scores and our amazing Trustpilot achievement in the UK proves we are firmly on track.

“The new financial year has started well in both the UK and Europe, with UK revenue growth returning to double-digit levels against prior year.

“While we remain cautious on outlook given economic and competitive pressures on the UK electricals market, we are confident of achieving our stated goals of future growth in the years ahead.”