Profit at the UK arm of Condé Nast, the publishing giant behind the likes of Vogue and GQ, has been slashed as it battles a rise in costs.
The company, whose publications also include Vanity Fair, Architectural Digest, Wired and Condé Nast Traveller, has reported a pre-tax profit of £8.3m for 2023, according to newly-filed accounts with Companies House.
The latest total comes after the firm’s pre-tax profit totalled £23.3m in 2022.
Over the same 12-month period, the company’s turnover dipped from £247.9m to £244.8m.
Condé Nast said: “Whilst revenue remained flat year-on-year, costs to the business increased.
“Many of these operating cost increases were driven by the group’s investment in strategic growth areas.
“These included increased paper, print and carriage costs, as well as manufacturing costs for consumer revenue products, events infrastructure and department headcount.”
Condé Nast added that it increased the editorial headcount by 3.5 per cent and its commercial team by 4.5 per cent.
Condé Nast’s UK turnover fell from £93.1m to £89m in the year and from £132.2m to £119.2m in Europe. However, in the rest of the world, its sales rose from £28.8m to £36.6m.
Its advertising revenue decreased from £211.8m to £200.5m but its consumer and other revenue grew from £42.3m to £44.2m.
Condé Nast looks to make further ‘cost efficiencies’
The results come after the group completed the sale of Vogue House in Hanover Square, London, in January 2024 for £74.9m, providing a profit of £62.4m.
A statement signed off by the board said: “The group has maintained sustained audience growth and, in accordance with its strategic plan, the business will continue to invest in its strategic areas including digital content, video output and growth of consumer revenue programmes.
“The group now also has additional diversified revenue streams, a cohesive management structure and support mechanisms for its operations including shared business services with Condé Nast global headquarters.
“Consumer revenue sources such as e-commerce, increased subscriptions and additional direct-to-consumer programs are expected to be drivers for future growth at the group.
“Whilst the current macroeconomic challenges in the fashion and luxury sectors could present some headwinds to growth as advertisers take a cautious approved, the new global content strategy is expected to streamline operations and ensure the additional cost efficiencies can be realised.
“To reflect the impact of the new globalised operating model and the functions performed by the European operating companies, the group new realises greater financial strength and stability given the diversity of businesses operating together.”