Sanoma Corporation, Interim Report 1 January–31 March 2025: Improved performance driven by Learning in a seasonally small quarter
Sanoma Corporation, Stock Exchange Release, 29 April 2025 at 7:30 EET
Sanoma Corporation, Interim Report 1 January–31 March 2025: Improved performance driven by Learning in a seasonally small quarter
This release is a summary of Sanoma’s Interim Report 1 January–31 March 2025. The complete report is attached to this release and is also available at www.sanoma.com/en/investors.
Q1 2025
- The Group’s net sales amounted to EUR 221.1 million (2024: 220.9). In Learning, net sales grew driven by the Netherlands and Poland. Net sales declined in Media Finland mainly due to lower advertising sales. The Group’s organic net sales development was 0% (2024: 5%).
- The Group’s operational EBIT excl. PPA improved to EUR -18.8 million (2024: -23.7) while being seasonally negative. The improvement was driven by Learning, where earnings were supported by growing net sales and improved cost efficiency driven by Program Solar. Earnings were stable in Media Finland.
- EBIT was stable and amounted to EUR -31.3 million (2024: -31.4). The items affecting comparability (IACs) amounted to EUR -3.7 million (2024: 1.5) and consisted mainly of strategic development costs, including Program Solar. Purchase price allocations and amortisations (PPAs) amounted to EUR 8.8 million (2024: 9.2).
- Operational EPS was EUR -0.17 (2024: -0.20).
- EPS was EUR -0.19 (2024: -0.18).
- Free cash flow improved to EUR -29.6 million (2024: -43.7) although being negative as typical for the seasonally small first quarter. The improvement was driven mainly by positive working capital development in Learning.
- Net debt/Adj. EBITDA was 2.4 (2024: 2.9), being within the long-term target level of ‘below 3.0’.
Outlook for 2025 (unchanged)
In 2025, Sanoma expects that the Group’s reported net sales will be EUR 1.28‒1.33 billion (2024: 1.34). The Group’s operational EBIT excl. PPA is expected to be EUR 170−190 million (2024: 180).
The outlook is based on the following assumptions:
- Demand for learning content will be relatively stable across the Group’s main operating markets.
- The advertising market in Finland will be relatively stable.
President and CEO Rob Kolkman:
”We had a good start to the year driven by improved performance in Learning in a seasonally small quarter. Growth in learning content sales in the Netherlands was partially driven by earlier ordering and supported by the continued underlying growth in the Dutch market. Digital learning platform sales increased in Poland, mainly driven by consumer demand. We also saw the first positive impacts of Program Solar in Learning’s cost base, which – together with the net sales growth – improved the seasonally negative operational earnings.
The economic uncertainty has increased during the first quarter. The US trade tariffs are not expected to have an impact on Sanoma’s businesses or performance in the short term. However, we expect the softness in the Finnish advertising market to continue in the coming months, especially in comparison to the second quarter of 2024. While the economic turmoil could cause somewhat different quarterly phasing compared to the previous year, our Outlook for the full-year 2025 remains unchanged.
The 2025 Sanoma Learning European Teacher Survey, with nearly 7,000 participants, continued to show stable and consistent value placed on high-quality learning materials throughout our markets, with 84% of the teachers agreeing that our learning materials help students in reaching curriculum objectives. The teachers have a strong preference in using printed and digital materials together, and they see the benefits of digital tools on improved inclusiveness among different learners, for instance.
In the first quarter, we continued to advance the use of AI in both businesses with a strong emphasis on its responsible use and human oversight. In Learning, for example, we integrated Speech Coach in some of our methods in Finland and Belgium, applied AI translations in editorial processes in Spain and implemented AI tools to improve coding efficiency. In Media Finland, the newsrooms have developed their capabilities for automatic news gathering from public sources and introduced an AI tool pack to support journalistic work processes. AI also assists in creating daily audio news summaries, in the B2C customer service chatbot and in generating B2B customer reports based on their sales results data.
In Media Finland, subscription sales increased, driven by continued good development in digital, especially the SVOD service Ruutu+. The digital news media subscriptions and +Kaikki, a bundle subscription including all of Media Finland’s digital consumer products, also performed favourably. Digital advertising continued to grow despite the fact that the overall demand for advertising weakened during the quarter. Media Finland’s advertising sales were further impacted by the ending of reselling of certain third-party TV channel advertising in the beginning of this year.
During the seasonally small first quarter, our free cash flow increased mainly due to improved working capital and higher operational earnings in Learning, and the deleveraging of our balance sheet continued to progress well. At the end of March, our Net debt / Adjusted EBITDA was well within the long-term target of < 3.0.
Our focus remains on increasing our profitability and free cash flow, while the upcoming curriculum renewals in our major learning markets, particularly Poland and Spain, are expected to accelerate organic growth from 2026 onwards. In Media Finland, we are continuing and accelerating our successful digital transformation. We aim to also expand through value-creating M&A in K12 learning services, while being committed to meeting our leverage and equity ratio targets and paying an increasing dividend, equal to 40–60% of our annual free cash flow.
After the first three months, we are in a good position to continue on our strategic path, to grow and further strengthen our business, improve our performance, and create value for all our stakeholders. I would like to warmly thank all Sanoma employees for their dedication and strong commitment in supporting our customers in the best possible way and delivering these solid results.”
Key indicators
| EUR million | Q1 2025 | Q1 2024 | Change | FY 2024 |
| Net sales | 221.1 | 220.9 | 0% | 1,344.8 |
| Operational EBITDA 1) | 26.0 | 21.2 | 23% | 360.8 |
| Margin 1) | 11.7% | 9.6% | 26.8% | |
| Operational EBIT excl. PPA 2) | -18.8 | -23.7 | 21% | 180.0 |
| Margin 2) | -8.5% | -10.7% | 13.4% | |
| EBIT | -31.3 | -31.4 | 0% | 81.8 |
| Result for the period | -28.4 | -27.6 | -3% | 40.6 |
| Free cash flow | -29.6 | -43.7 | 32% | 145.3 |
| Equity ratio 3) | 42.7% | 42.0% | 45.0% | |
| Net debt | 617.0 | 694.1 | -11% | 568.5 |
| Net debt / Adj. EBITDA | 2.4 | 2.9 | -18% | 2.2 |
| Operational EPS, EUR 1) | -0.17 | -0.20 | 13% | 0.46 |
| EPS, EUR | -0.19 | -0.18 | -3% | 0.19 |
| Free cash flow per share, EUR | -0.18 | -0.27 | 32% | 0.89 |
| Average number of employees (FTE) | 4,594 | 4,834 | -5% | 4,820 |
| Number of employees at the end of the period (FTE) | 4,604 | 4,817 | -4% | 4,648 |
1) Excluding IACs
2) Excluding IACs and purchase price allocation adjustments and amortisations (PPAs)
3) Advances received included in the formula of equity ratio were EUR 148.6 million in Q1 2025 (2024: 135.3).
Annual General Meeting
The Annual General Meeting 2025 is held today at 10:00 EET in Helsinki. The meeting can be followed online via webcast at www.sanoma.com.
Analyst and investor conference
An analyst and investor conference will be held in English by the President and CEO Rob Kolkman and CFO Alex Green the same day at 15:00 EET at Sanomatalo, Flik Studio Eliel, 1st floor, Töölönlahdenkatu 2, Helsinki. To join the event in person, please register by email to ir@sanoma.com latest on Friday 25 April 2025.
The conference can be followed as a live webcast at https://sanoma.events.inderes.com/q1-2025.
Management presentation is followed by a Q&A session. Questions can be placed through the webcast chat function or by phone. To ask questions by phone, the participant is required to register at https://palvelu.flik.fi/teleconference/?id=50051354. After the registration you will receive the phone number and conference ID to access the conference. If you wish to ask a question, please press *5 on your telephone keypad to enter the queue.
An on-demand replay of the webcast will be available shortly after the conference at www.sanoma.com/en/investors.
Interview opportunities for media by Teams or by phone are available after the conference. Media representatives are asked to book interviews via Communications Director Marcus Wiklund, marcus.wiklund@sanoma.com.
Additional information
Kaisa Uurasmaa, Head of Investor Relations and Sustainability, tel. +358 40 560 5601
Sanoma
Sanoma is an innovative and agile learning and media company impacting the lives of millions every day. Our Sustainability Strategy is designed to maximise our positive ‘brainprint’ on society and to minimise our environmental footprint. We are committed to the UN Sustainable Development Goals and signatory to the UN Global Compact.
Our learning products and services enable teachers to develop the talents of every child to reach their full potential. We offer printed and digital learning content as well as digital learning and teaching platforms for primary, secondary and vocational education, and want to grow our business.
Our Finnish media provide independent journalism and engaging entertainment also for generations to come. Our unique cross-media position offers the widest reach and tailored marketing solutions for our business partners.
Today, we operate across Europe and employ close to 5,000 professionals. In 2024, our net sales amounted to approx. 1.3bn€ and our operational EBIT margin excl. PPA was 13.4%. Sanoma shares are listed on Nasdaq Helsinki. More information is available at sanoma.com.
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