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].

Financial Performance - Adjusted Revenue reached $1.66 billion, with 48% being recurring revenue[11] - Adjusted EPS increased by 31% from $2.78 to $3.64[16] - Adjusted EBITDA grew by 8% from $369 million to $398 million[16] - Free Cash Flow increased by 10% to $126 million, with a Fiscal Year 2026 target of $200 million reaffirmed[13] - Adjusted Operating Margin increased by 300 bps to 15.1%, and Adjusted EBITDA Margin increased by 120 bps to 24.0%[13] Business Segments - Research revenue grew by 3%, driven by a 19% increase in article submissions and an 8% increase in article output[19] - Learning revenue grew by 2%, with Inclusive Access showing a 22% increase and Professional Title Signings up by 16%[22] - AI licensing revenue reached $40 million in Fiscal Year 2025, up from $23 million in Fiscal Year 2024[13,31] Corporate Strategy and Outlook - The company is focused on continuous margin expansion beyond Fiscal Year 2026[39] - The company reaffirms Fiscal Year 2026 Free Cash Flow target of approximately $200 million[26,59] - The company expects low-to-mid single digit growth in Adjusted Revenue for Fiscal Year 2026[59] - The company anticipates Adjusted EBITDA Margin between 25.5% and 26.5% and Adjusted EPS between $3.90 and $4.35 for Fiscal Year 2026[59]