14 | Magazine World | Q4 2008 www.fipp.com
cover story
Rationalisation and negotiation will be accelerated
Didier Quillot CEO, Lagardère Active, France
revenues of our magazines and, to a lesser
extent, has impacted our copy sales. Some
magazine segments have been more impacted
than others. Since we decided to exit some
underperforming segments last year, we are
benefiting from our strong positions in quality
women’s and celebrity segments.
The strategic move to develop digital
activities has mitigated the decline in revenues.
With a total digital turnover below 1 per cent of
total revenues in 2006, we expect it to reach
between 5 to 10 per cent of our total revenues
in 2008 – one year ahead of our plans.
The present situation leads us to be
The declining economic conditions have an extremely cautious on costs and structures. As
obvious impact on our traditional business. well as the acceleration of our restructuring
This impact is tougher in print activities than in process of several business units, we
digital, where our operations are still increasing will be very selective over new launches.
significantly. rationalisation plan on magazine portfolio and
The impact is also currently more severe geographic regions implemented in early 2007
in the mature markets than in the emerging is helping us face the difficult times.
countries, where we invest to increase our
market positions.
We believe this situation will last for the
"...we are benefitting
whole of 2009, and obliges us to pursue the
from our strong
strategic moves we started two years ago.
In some cases, we will go much deeper in the positions in quality
reorganisation of our business than originally
planned.
women's and
The crisis has severely hit the advertising
celebrity segments..."
Full speed ahead
Jonathan Newhouse CEO, Condé Nast International, UK
T
he impact varies from market price increases for many of our philosophy of operating with a long-
to market and from magazine magazines in 2009. term view and hence we are not
to magazine. It has slowed Condé Digital revenues continue to planning any extreme measures. In
Nast International's growth, but grow far faster than magazines, fact, we continue to invest in both
only a little bit. In the first half of with revenues increasing about magazines and digital and to launch
the year, revenues grew about 18 40 per cent in 2008. We continue new products. For instance, in 2009
per cent and in the second half, to invest in our online products we plan to launch Wired in Italy
we expect the growth to slow and we are forecasting continued and the UK, Glamour in Japan and
to about 10 per cent. The impact strong growth in this sector in Australia, Condé Nast Traveller in
of the slowdown has been felt spite of any slowdown in the Russia and GQ in Romania.
more acutely in the older Western Most of our revenues, about 70 general economy. With respect We plan to increase our
European markets like Germany per cent, come from advertising, to events, they represent less activities in China and to start
and the UK. Emerging markets and it is this area that is always than one per cent of Condé Nast a title in Bulgaria for the first
like Russia, China and India the most impacted by market International's revenues. time. This launch activity follows
continue to enjoy robust growth. fluctuation. Circulation revenues Strategically, we are paying more a spate of launches which took
As far as profits go, Condé Nast are stable. Our magazines' attention to expenses in every place in 2008. I don't think another
International has increased its circulations do not vary with area and taking a conservative international publisher is launching
profit every year since 1999 and economic boom and bust cycles. approach to ongoing expenses. at the rate that Condé Nast
we expect to continue doing so. In fact, we are planning cover But Condé Nast International has a International is today.
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