Sanoma (SAA1V) Q4 2024 earnings summary

Executive summary

• Operational EBIT excl. PPA improved to EUR 180 million, with margin rising to 13.4% from 12.6% year-over-year, and free cash flow increased to EUR 145 million, up from EUR 105 million in 2023.

• Net sales declined 3% to EUR 1,344.8 million, mainly due to planned contract discontinuations and divestments in Learning and lower advertising in Media Finland.

• Profitability increased in both learning and media segments, supported by margin improvements and cost efficiencies.

• Net debt/Adjusted EBITDA improved to 2.2, well below the target of 3.0.

• Board proposes a dividend of EUR 0.39 per share, up from EUR 0.37, to be paid in three equal instalments.

Financial highlights

• Operational EBIT increased by EUR 5 million year-over-year; total EBIT up EUR 30 million due to lower IACs.

• Free cash flow rose from EUR 105 million to EUR 145 million, driven by higher EBITDA and lower investments.

• Net debt reduced to EUR 569 million from EUR 640 million, with leverage at 2.2 and equity ratio at 45%.

• Result for the period was EUR 40.6 million, up from EUR 4.1 million in 2023.

• Dividend payout represents about 44% of free cash flow, within the 40%-60% policy.

Outlook and guidance

• 2025 net sales expected at EUR 1.28–1.33 billion; operational EBIT (excluding PPA) between EUR 170–190 million.

• Learning segment net sales to decline slightly in 2025 due to discontinuation of low-value contracts, but margins to improve.

• Media Finland to see modest subscription growth (driven by digital), but lower B2B advertising and end of Disney contract to impact top line.

• Free cash flow expected to increase further in 2025, mainly from working capital improvements.

• Assumptions include stable demand in learning and a relatively stable advertising market in Finland.