Sanoma (SAA1V) Q2 2025 earnings summary

Executive summary

• Operational EBIT increased in H1 2025, mainly driven by growth and efficiency in the Learning segment, while Media Finland faced lower advertising sales, especially in TV, and weaker events.

• Net sales remained stable at EUR 560.9 million for H1 2025, as Learning growth offset declines in Media Finland.

• Free cash flow improved to EUR -51.7 million from EUR -58.2 million, supported by higher operational earnings and lower financial items, though it remained negative due to seasonality.

• Net debt/Adj. EBITDA improved to 2.5, with leverage and equity ratio within long-term targets.

• Strategic focus remains on profitability, free cash flow, and balance sheet strength, with growth expected from curriculum renewals and digital transformation.

Financial highlights

• H1 2025 net sales: EUR 560.9 million (down 1% year-over-year); operational EBIT excl. PPA: EUR 43.3 million (+16%).

• Q2 2025 operational EBIT excl. PPA: EUR 62.0 million (Q2 2024: EUR 61.0 million); margin 18.3%.

• Free cash flow for H1 2025 improved to EUR -51.7 million (from EUR -58.2 million).

• Net debt at end of June 2025: EUR 659.0 million (down from EUR 729.6 million year-over-year); equity ratio at 38.5%.

• Operational EPS for Q2 2025: EUR 0.21 (Q2 2024: EUR 0.17).

Outlook and guidance

• 2025 outlook remains unchanged: net sales expected at EUR 1.28–1.33 billion (2024: EUR 1.34 billion).

• Operational EBIT excl. PPA forecasted at EUR 170–190 million (2024: EUR 180 million).

• Stable demand expected in learning, with continued uncertainty in advertising.

• Free cash flow for the full year is expected to increase versus EUR 145 million in 2023.