Vogue and GQ may revel in the lifestyle of the rich and glamorous, but publisher Condé Nast has been feeling the squeeze in the UK during the recession. The group has revealed that profits plunged 72 per cent last year.
Pre-tax profits at Condé Nast Publications, a subsidiary based in London, fell from £20.1m in 2008 to £5.6m last year, according to its latest financial results.
Revenues at the division – dominated by sales in the UK although sales to the rest of the world are just under a quarter – tumbled from £125.2m to £106.7m as it came under pressure from falling advertising revenues and strong competition from its rivals.
The company, which traces its roots back over a century, closed a series of titles a year ago in the US with the loss of 180 jobs as it battled the recession.
Condé Nast has embraced digital publishing, and has sought to provide content for technologies such as the iPad. It has developed apps for its titles including Wired and The New Yorker. The group is also targeting the growing wealth in emerging markets, including launching Traveller in India this month.