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2024-07-24 07:30:00 CEST 2024-07-24 07:30:02 CEST REGULATED INFORMATION Sanoma Oyj - Half Year financial reportSanoma Corporation, Half-Year Report 1 January-30 June 2024: Strong earnings improvement in both Learning and MediaSanoma Corporation, Stock Exchange Release, 24 July 2024 at 8:30 EET Sanoma Corporation, Half-Year Report 1 January–30 June 2024: Strong earnings improvement in both Learning and Media This release is a summary of Sanoma’s Half-Year Report 1 January–30 June 2024. The complete report is attached to this release and is also available at www.sanoma.com/en/investors. Q2 2024
H1 2024
Outlook for 2024 (unchanged) In 2024, Sanoma expects that the Group’s reported net sales will be EUR 1.29‒1.34 billion (2023: 1.4). The Group’s operational EBIT excl. PPA is expected to be EUR 160−180 million (2023: 175). Regarding the operating environment, Sanoma expects that:
President and CEO Rob Kolkman: “We have had a good first half of the year with strong earnings improvement in both Learning and Media Finland. The positive impacts of active cost containment measures, lower paper prices and carefully implemented price increases seen already during the first quarter continued throughout the reporting period and resulted in around 50% improvement in both businesses’ first half operational EBIT excl. PPA compared to last year. As a significant part of our full-year operational earnings is dependent on the outcome of the third quarter high season in Learning and the development of the Finnish advertising market in July–December, we are keeping our Outlook for 2024 unchanged. In Learning, net sales grew in most of our major operating countries, especially Spain and the Netherlands, partially supported by earlier ordering. During the upcoming third quarter high season, we expect growth in other learning content markets to offset the expected decline in Spain resulting from the lower curriculum cycle. When adding the impact of the discontinuation of low-value Dutch distribution contracts, we continue to expect lower net sales and a stable margin for the full year 2024. The implementation of the process and efficiency improvement program, Solar, continued to proceed according to our plans across all streams. We have, for example, established a sizable Tech hub in Poland that will bring benefits both to us and our customers in the years to come. During the first half of the year, we saw the first results of Solar initiatives taken in Spain at the end of 2023 in Learning’s personnel expenses. Supported by our increased scale and Program Solar, we are on track to reach Learning’s long-term profitability (operational EBIT margin excl. PPA) target of 23% by 2026. In Media Finland, we have seen good development in both digital subscription and advertising sales throughout the first half of the year. Together with a lower cost base – to a great extent driven by lower paper and printing costs – this has resulted in an approx. EUR 7 million improvement in Media Finland’s operational EBIT excl. PPA. We expect this improvement to hold for the full year and July–December operational earnings to be similar to 2023. This is due to the advertising market in Finland declining slightly, a stronger prior year comparable for both advertising and subscription sales, and continuing, but lower, paper cost gains. The significant improvement in the Group’s free cash flow was mainly attributable to higher earnings in both businesses, lower investments, active working capital management and some phasing. Our net debt and leverage improved year-on-year and Net debt / Adjusted EBITDA was below the long-term target of < 3.0. In line with the annual seasonality of the learning business, the ratio is expected to decline further during the second half of this year. We continue to be fully focused on delivering on our strategic focus areas for 2024–2026, which are 1) increasing the profitability of Learning and Media Finland, 2) growing organically and through in-market acquisitions, and 3) deleveraging the balance sheet. I would like to extend my warmest thanks to all our teams for delivering the good results during the first half of the year and supporting our customers in the best possible way.” Key indicators
1) Excluding IACs Analyst and investor conference An analyst and investor conference will be held in English by the President and CEO Rob Kolkman and CFO Alex Green at 11:00 EET at Sanomatalo, Flik Studio Eliel, 1st floor, Töölönlahdenkatu 2, Helsinki. The conference can be followed as a live webcast at https://sanoma.videosync.fi/q2-2024. An on-demand replay of the webcast will be available shortly after the conference at www.sanoma.com/en/investors. Interview opportunities for media by Teams or by phone are available after the conference. Media representatives are asked to book interviews via Communications Director Marcus Wiklund, marcus.wiklund@sanoma.com. Additional information Sanoma Our learning products and services enable teachers to develop the talents of every child to reach their full potential. We offer printed and digital learning content as well as digital learning and teaching platforms for primary, secondary and vocational education, and want to grow our business. Our Finnish media provide independent journalism and engaging entertainment also for generations to come. Our unique cross-media position offers the widest reach and tailored marketing solutions for our business partners. Today, we operate in twelve European countries and employ more than 5,000 professionals. In 2023, our net sales amounted to approx. 1.4bn€ and our operational EBIT margin excl. PPA was 12.6%. Sanoma shares are listed on Nasdaq Helsinki. More information is available at sanoma.com. Attachment ![]() |
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