Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Sanoma Oyj (FRA:SNQB, Financial) reported improved performance in Q1 2025, driven by growth in the learning segment, particularly in the Netherlands and Poland.
- Operational EBIT improved due to increased net sales and enhanced cost efficiency.
- Free cash flow showed year-on-year improvement, supported by strong performance and better working capital management.
- The company continued to deleverage its balance sheet, reducing net debt and improving the equity ratio.
- Digital platform sales in Poland contributed to growth, with increased direct sales to parents and students.
Negative Points
- Q1 is a seasonally small and loss-making quarter for Sanoma Oyj (FRA:SNQB), impacting overall financial performance.
- Advertising sales in Media Finland decreased, particularly in TV, print, and radio, affecting operational EBIT.
- The Finnish macroeconomic environment remains soft, with no signs of improvement, impacting market sentiment.
- The advertising market is expected to remain soft in Q2, with limited visibility and uncertainty.
- Sales in regions like Sweden were weak due to phasing issues, affecting overall learning segment performance.
Q & A Highlights
Q: Regarding program solar, are you ahead of your original schedule for achieving run rate savings by the end of 2025?
A: (Rob Kolkman, CEO) We are slightly ahead of schedule in terms of actions taken. Some impacts are already visible, such as lower people costs from reorganizations in Spain. (Alexander Green, CFO) The full impact will be seen in 2026, with savings from lower depreciations and efficiencies as volumes increase.
Q: Are there any ongoing acquisitions, and when might they occur?
A: (Rob Kolkman, CEO) We do not comment on ongoing M&A activities. However, acquisitions are a crucial part of our growth strategy, and we are actively working on them.
Q: Can you elaborate on the positive funding impact in learning during Q1?
A: (Alexander Green, CFO) The growth in sales in the Netherlands is partly due to earlier ordering. It's difficult to specify how much is early ordering versus growth, but we believe a reasonable part is early ordering.
Q: What is your view on the Finnish macroeconomic situation?
A: (Rob Kolkman, CEO) The Finnish market remains soft, with no signs of improvement yet. Our performance aligns with the overall market, excluding the third-party deal.
Q: Could you provide more details on the higher digital platform sales in Poland?
A: (Rob Kolkman, CEO) In Poland, there's an increase in parents paying for services due to changes in government funding. This includes student information systems and exam preparation materials, which are sold directly to parents and students. Some of these services have recurring revenue potential.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
