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].

Core Insights - Sanoma Corporation reported improved performance in Q1 2025, primarily driven by the Learning segment during a seasonally small quarter [1][3] - The Group's net sales for Q1 2025 were EUR 221.1 million, showing a slight increase from EUR 220.9 million in Q1 2024, with organic net sales development at 0% [6][12] - The operational EBIT excluding PPA improved to EUR -18.8 million from EUR -23.7 million year-on-year, indicating enhanced cost efficiency and net sales growth in Learning [6][12] Financial Performance - The Group's reported net sales are projected to be between EUR 1.28 billion and EUR 1.33 billion for 2025, compared to EUR 1.34 billion in 2024 [3] - Operational EBIT excluding PPA is expected to be between EUR 170 million and EUR 190 million for 2025, down from EUR 180 million in 2024 [3] - Free cash flow improved to EUR -29.6 million in Q1 2025 from EUR -43.7 million in Q1 2024, driven by positive working capital development in Learning [6][12] Market Dynamics - Demand for learning content is expected to remain stable across the Group's main operating markets, while the Finnish advertising market is anticipated to remain soft [4][7] - The economic uncertainty has increased, but US trade tariffs are not expected to impact Sanoma's performance in the short term [4] Strategic Initiatives - The company is focusing on increasing profitability and free cash flow, with upcoming curriculum renewals in major learning markets expected to accelerate organic growth from 2026 [11] - Sanoma is advancing the use of AI in its businesses, emphasizing responsible use and human oversight, with applications in Learning and Media Finland [6][8] Employee Metrics - The average number of employees decreased by 5% to 4,594 in Q1 2025 compared to 4,834 in Q1 2024 [12]