Condé Nast UK profits plunge over a third after sale ruled out

Condé Nast’s UK arm posted a 36% decline in pre-tax profit, falling to just under £18 million, and a 7% revenue drop to £70.6 million after the family that controls the group ruled out a sale. International revenue grew 18% to £29.7 million, keeping overall turnover close to £100 million. Restructuring expenses more than doubled year on year to £4.3 million, driven largely by severance payments, yet employee numbers only fell from 466 to 461.

The decision not to sell came from Steven Newhouse of Advance, ending rumours that Jeff Bezos might buy the business. Earlier in the year, chief executive Roger Lynch departed to become head of Mattel, warning that Google’s AI Summaries were eroding a key traffic source. The company said the profit dip reflects planned investment in customised client solutions and higher pension and wage-inflation costs.