Sanoma Corporation, Half-Year Report 1 January–30 June 2025: Increased operational EBIT driven by Learning

Core Viewpoint - Sanoma Corporation reported an increase in operational EBIT driven by its Learning segment, despite a slight decline in net sales compared to the previous year [1][4]. Financial Performance - For Q2 2025, net sales were EUR 339.8 million, a decrease of 1% from EUR 342.4 million in Q2 2024. For H1 2025, net sales totaled EUR 560.9 million, remaining stable compared to EUR 563.3 million in H1 2024 [5][13]. - Operational EBIT excluding Purchase Price Allocation (PPA) for Q2 2025 was EUR 62.0 million, up 2% from EUR 61.0 million in Q2 2024. For H1 2025, it increased by 16% to EUR 43.3 million from EUR 37.2 million in H1 2024 [5][14]. - The overall EBIT for Q2 2025 rose to EUR 48.9 million, a 13% increase from EUR 43.2 million in Q2 2024, while H1 2025 EBIT increased by 50% to EUR 17.6 million from EUR 11.8 million in H1 2024 [5][14]. - The operational EPS for Q2 2025 was EUR 0.21, a 20% increase from EUR 0.17 in Q2 2024, and for H1 2025, it was EUR 0.04 compared to a loss of EUR 0.02 in H1 2024 [5][14]. Segment Performance - The Learning segment saw growth in net sales driven by increased sales of learning content in the Netherlands and Italy, as well as digital platform sales in Poland. However, Media Finland experienced a decline in net sales due to lower advertising demand [7][9]. - In Media Finland, subscription sales increased slightly, particularly from the SVOD service Ruutu+ and digital news media subscriptions. However, advertising sales decreased, primarily due to lower TV advertising [9]. Outlook and Strategic Initiatives - The company maintains its outlook for 2025, expecting reported net sales between EUR 1.28 billion and EUR 1.33 billion, with operational EBIT excluding PPA projected at EUR 170 million to EUR 190 million [4][11]. - Sanoma is focusing on increasing profitability and free cash flow while strengthening its balance sheet. The company anticipates that curriculum renewals in major learning markets will accelerate organic net sales growth from 2026 onwards [12]. - The company is advancing the use of AI in its operations, enhancing efficiency in content creation and automating processes in newsrooms [8]. Key Indicators - Key financial indicators for Q2 2025 include a net sales decrease of 1%, operational EBIT growth of 2%, and an operational EPS increase of 20% compared to Q2 2024 [13][14]. - The net debt to Adjusted EBITDA ratio improved to 2.5 from 2.9 in the previous year, remaining within the long-term target of below 3.0 [10].