Sanoma (SAA1V) Q3 2025 earnings summary

Executive summary

• Operational EBIT improved year-over-year, driven by growth in learning content and digital subscriptions, despite lower advertising sales and a decline in net sales.

• Free cash flow and deleveraging progressed, with leverage reduced to 2.0 and net debt down to €535.9m.

• Strategic actions included discontinuing low-value Dutch distribution contracts and announcing the closure of the Tampere printing plant in Finland.

• Net sales declined 3–4% year-over-year to €1,077m for Q1–Q3, in line with guidance.

• Impairments totaling €78m were booked in Q3 due to Dutch distribution exit and Tampere plant closure.

Financial highlights

• Operational EBIT excl. PPA for Q1–Q3 improved to €215.6m (+4% y/y), with Q3 at €172.4m (+1% y/y).

• Free cash flow increased to €86.3m for Q1–Q3, supported by higher earnings and lower financing costs.

• Net debt reduced to €535.9m from €615.5m year-over-year; equity ratio at 43.1%.

• Operational EPS for Q1–Q3 rose to €0.76 (+13% y/y).

• Dividend of €0.39/share for 2024 to be paid in three instalments.

Outlook and guidance

• 2025 net sales expected at €1.29–1.31bn (2024: €1.34bn); operational EBIT excl. PPA forecasted at €180–190m.

• Margin target of 23% expected to be exceeded due to stable profit on a lower revenue base.

• Assumes stable demand for learning content and advertising in Finland; key uncertainties remain in Finnish advertising and returns in Italy and Spain.