AO World to open operations in Netherlands in 2016

* AO to keep investing in Germany, Dutch launch

* Shares (Berlin: DI6.BE - news) down 1.9 pct

* CEO says German online market five years behind UK

* H2 starts well; "Black Eye" Friday safest online-CEO (Adds CEO, analyst comments, shares)

LONDON, Nov 24 (Reuters) - AO World (Other OTC: AOWDF - news) said it plans to expand to the Netherlands next spring and will keep investing in Germany even as expansion into continental Europe pushed the British online domestic appliances retailer into the red in its fiscal first half.

AO World, which rivals Dixons Carphone (Other OTC: DSITF - news) and Home Retail's Argos, reported an operating loss of 8.9 million pounds ($13.5 million) for the six months to Sept. 30 on revenue up 21.7 percent to 264.3 million.

A year ago it reported a profit of 0.9 million. AO World said the loss was due to investment in Germany and other European countries of 0.9 million, adding it expected a similar level of investment in the second half as in the first.

AO World floated at 285 pence in February 2014 and peaked at 412 pence on its listing day. The stock, which slumped after a profit warning in February, was down 1.9 percent at 0848 GMT at 160 pence.

"This set of results will have an impact on short term profitability; however, that doesn't take away from our positive thesis around AO," said Jefferies analyst David Reynolds, who rates the stock a "buy". "It (Other OTC: ITGL - news) is a revenue growth story fueled by investment in brand and foreign expansion."

The company, which sells everything from washing machines and fridges to vacuum cleaners and TVs, said it did not expect its Dutch launch to have a material impact on group adjusted earnings although it would incur some early set-up costs.

Chief Executive John Roberts said the move to the Netherlands would help leverage its investment in Germany, where it plans to open a regional office and distribution centre in 2016. Other adjacent markets could follow, he said.

Roberts told Reuters the German online market for electrical appliances was five years behind that in Britain, but had huge potential, noting that Germany is Amazon's biggest market outside the United States.

He said AO, which is muscling into the territory of Metro (Other OTC: MTRAF - news) 's Media Markt and Saturn chains, was far ahead both in terms of the sophistication of its website and in offering next-day delivery.

UK revenue growth accelerated to 14.5 percent and the second half had started well, the company said, although it still has peak trading ahead of it, including Black Friday this week.

"We've renamed it 'Black Eye' Friday. Online is the safest place to bag a bargain," Roberts joked after British shoppers traded blows in stores last year.

($1 = 0.6601 pounds) (Reporting by Emma Thomasson; editing by James Davey, Jason Neely and Adrian Croft)