Even magazines giant Condé Nast is feeling the squeeze as the publisher of Vogue and GQ diversifies beyond print by investing more in technology, ecommerce and education.
Pre-tax profits at UK arm Condé Nast Publications tumbled 16 per cent to £8.8 million last year, with revenues dipping 6.3 per cent to £110 million.
Turnover fell partly because Condé Nast axed the print edition of Easy Living and turned it online only.
“Increased investment” included £2.9 million on property as the company set up the Condé Nast College of Fashion and Design in Soho and £700,000 on technology.
The accounts noted its magazines have “experienced a remarkable stability in circulation, emphasising the loyalty of upmarket readers”. London-based parent Condé Nast International, which operates in France, Italy, Spain and Germany, moved back into the black with a £1 million pre-tax profit on sales of £413 million.
The group spent £7.8 million for a stake in London fashion ecommerce site Farfetch and £6.2 million for a holding in French online second-hand clothes “market place” Vestiaire.Reuse content