Morning:
6°c
Vogue publisher Condé Nast's London-based international arm saw annual profits drop 12% last year as the recession began to bite the luxury market.
Annual accounts filed at Companies House showed profits at the glossy magazines firm were £33.5 million in the year to 31 December 2008, which was down from £38.3 million a year earlier.
Turnover at Condé Nast International Limited, which includes Britain, Italy, Germany, Spain and France, rose 14% to £479.9 million.
It is thought that the strength of the euro helped to boost revenues.
The UK magazines subsidiary, Condé Nast Publications Limited, also saw profits dip to £18.9 million in 2008, down 14%. Turnover held steady, down less than 1% to £125.2 million.
During the first half of 2008, many of Condé Nast's British titles, including Vogue, Vanity Fair and Condé Nast Traveller, saw record circulation.
But sales began to slip in the second half of the year as the economy tanked.
The accounts show that Condé Nast International paid a dividend of £13 million to its privately-owned American parent company, down significantly from £66.6 million a year earlier.
Senior sources declined to comment, although it is understood that dividends are not paid on a regular or predictable basis.
Insiders also cautioned that the accounts are not comprehensive and do not cover all of Condé Nast's international activities.
However, the decision to pay a smaller dividend came at an awkward time for Condé Nast in America, where the recession has hit the luxury advertising market far harder than in Europe.
Condé Nast has shut at least 10 US magazines in the past two years, including Portfolio, Gourmet, Modern Bride and House & Garden, and the company has slashed budgets by up to 25%.
The international arm, which has a reputation for less extravagance, has not shut any British titles and invested in two launches this year, technology magazine Wired and fashion bi-annual Love.
