Sanoma Corporation, Interim Report 1 January–30 September 2025: Solid quarter supporting improved operational EBIT for the first nine months

Core Insights - Sanoma Corporation reported a solid performance in Q3 2025, leading to improved operational EBIT for the first nine months of the year [1][7][17] - The company narrowed its outlook for 2025, expecting reported net sales of EUR 1.29–1.31 billion and operational EBIT excl. PPA of EUR 180–190 million [6][17] Financial Performance - Group's net sales decreased to EUR 515.8 million in Q3 2025, down from EUR 540.0 million in Q3 2024, reflecting a -4% change [5][19] - Operational EBIT excl. PPA improved to EUR 172.4 million in Q3 2025, compared to EUR 170.0 million in Q3 2024, marking a 1% increase [5][19] - EBIT decreased to EUR 81.9 million in Q3 2025, down 30% from EUR 116.9 million in Q3 2024, primarily due to higher impairments [5][19] - Free cash flow improved to EUR 138.0 million in Q3 2025, a 2% increase from EUR 134.8 million in Q3 2024 [19] Business Segments - In Learning, net sales were impacted by the planned discontinuation of low-value distribution contracts in the Netherlands, partially offset by growth in learning content sales [5][9] - Media Finland experienced growth in subscription sales, particularly from the SVOD service Ruutu+, but faced lower advertising sales due to a soft advertising market [11][12] Strategic Decisions - The company decided not to participate in multi-year distribution tenders in the Dutch market, leading to a EUR 48 million impairment, but is expected to improve operational EBIT margin in 2026 [15] - Plans to centralize news media printing operations to Helsinki and close the Tampere printing plant are in place, reflecting the shift towards digital media consumption [16] Future Outlook - The demand for learning content is expected to remain stable across the Group's main operating markets, while the advertising market in Finland is anticipated to be relatively stable [12][13] - The company aims to enhance its digital transformation and expand through value-creating M&A in K12 learning services [18]