LONDON, Nov 21 (Reuters) - British online consumer electricals retailer AO World raised its profit outlook after reporting a return to profit in its first half as reduced costs and improved margins offset a fall in sales in a tough market for discretionary spending.

The seller of washing machines, fridge freezers, cookers, TVs and laptops said on Tuesday it made a pretax profit of 13 million pounds ($16.20 million) in the six months to Sept. 30 versus a loss of 12 million pounds in the same period last year, despite a 12% fall in revenue. ($1 = 0.8025 pounds) (Reporting by James Davey; Editing by Kate Holton)