Condé Nast moves beyond print in profit squeeze

Pre-tax profits at UK arm tumbled 16% to £8.8 million last year

(MARIO TESTINO FOR BRITISH VOGUE)

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.