Sanoma (SAA1V) Q1 2025 earnings summary

Executive summary

• Q1 2025 performance improved, mainly driven by Learning segment growth in the Netherlands and Poland, despite being a seasonally small and loss-making quarter.

• Net sales were stable at €221.1 million, with Learning gains offsetting lower Media Finland advertising.

• Operational EBIT excluding PPA improved to €-18.8 million, mainly due to Learning sales growth and cost efficiencies.

• Free cash flow improved to €-29.6 million from €-43.7 million year-over-year, supported by working capital improvements.

• Program Solar initiatives nearly complete, with first cost savings visible and full impact expected by 2026.

Financial highlights

• Net sales: €221.1 million (Q1 2024: €220.9 million); organic growth 0%.

• Operational EBIT excl. PPA: €-18.8 million (Q1 2024: €-23.7 million); margin improved to -8.5% from -10.7%.

• Free cash flow: €-29.6 million (Q1 2024: €-43.7 million); 12-month rolling free cash flow exceeded €150 million.

• Net debt decreased to €617 million (Q1 2024: €694 million); net debt/Adj. EBITDA improved to 2.4 (Q1 2024: 2.9).

• Equity ratio at 42.7% (Q1 2024: 42.0%), at the higher end of the long-term target range.

Outlook and guidance

• 2025 revenue guidance unchanged at €1.28–1.33 billion (2024: €1.34 billion).

• Operational EBIT excl. PPA guidance for 2025 remains €170–190 million (2024: €180 million).

• Learning content market expected to be stable in 2025, with growth anticipated from 2026, especially in Spain.

• Advertising market in Finland expected to remain soft in H1, with potential stabilization in H2.

• Assumptions: stable demand for learning content and relatively stable Finnish advertising market.