Sanoma (SAA1V) CMD 2025 summary

Strategic priorities and growth outlook

• Targeting high single-digit organic earnings growth for 2026–2030, driven by leading K-12 learning positions, curriculum renewals, personalized and AI-powered solutions, and Media Finland's digital transformation.

• Learning segment aims for mid single-digit net sales growth and high single-digit profit growth, powered by curriculum renewal cycles in Spain, Poland, and the Netherlands, personalized learning, AI adoption, and disciplined M&A.

• Media Finland expects stable net sales and low single-digit profit growth, with a significant uplift from the opening of the gambling advertising market in 2027, projected to add over €20 million in high-margin annual revenue.

• AI is integral to both internal productivity and product innovation, enabling personalized learning and enhanced content creation with responsible human oversight.

• The group maintains a strong balance sheet, with a net debt/EBITDA target below 2.5, unchanged dividend policy (40–60% of annual free cash flow), and significant headroom for M&A.

Learning segment: market position, innovation, and execution

• Holds the number one K-12 learning position in Europe, serving 25 million students, with high barriers to entry and resilient, sticky markets.

• Organic growth is driven by curriculum renewal cycles, new funding cycles, and product launches tailored to local needs in core markets.

• Personalized and blended learning solutions, including AI-powered tools and adaptive platforms, address teacher shortages, classroom diversity, and student engagement.

• M&A strategy targets both new geographies and strengthening positions in existing markets, focusing on scalable, high-quality K-12 content and adjacent services.

• Productivity gains are achieved through a scalable operating model, harmonized digital platforms, and AI-driven efficiencies in content creation and workflow.

Media Finland: digital transformation and new growth levers

• Media Finland has achieved high digital reach (89%), with over 50% of subscriptions now digital-only, and continues to optimize print and linear businesses.

• Digital subscriptions and advertising are key growth drivers, supported by data, personalization, and a cross-functional operating model.

• The opening of the gambling market in 2027 is expected to add over €20 million in high-margin advertising revenue annually, with peak years followed by stabilization.

• AI is embedded in newsroom transformation, marketing, digital development, and B2B sales, driving both productivity and customer value.

• Strategic priorities include maintaining trust, leveraging first-party data, and responsible AI adoption to differentiate in a rapidly evolving media landscape.