Translation: Original published in Finnish on 05/07/2026 at 08:40 am EEST

Source: Inderes & Modular Finance (consensus, 6 estimates)

Sanoma published its Q1 earnings report this morning, which was slightly better than expected in terms of profitability for the first quarter that seasonally generates an operating loss. The company reiterated its guidance for the current year, so we do not expect significant upward pressure on our or the consensus estimates, which are at the midpoint of the earnings guidance range, with the exception of the recent acquisition. You can follow Sanoma's Q1 earnings call, starting at 3.00 pm EEST, via this link.

Revenue precisely in line with expectations

Sanoma's Q1 revenue developed steadily, settling at 221 MEUR and fully in line with expectations. Learning's revenue slightly exceeded our estimate, which was at the previous year's level, as it grew by 4%, mainly driven by higher spring season orders in the Netherlands. Correspondingly, Media Finland's revenue decreased by 3%, thus falling short of our estimate, which had anticipated stable development. This was driven by a bigger drop in advertising sales than we estimated, and more subdued subscription sales growth than expected.

EBIT is slightly less negative than expected

Sanoma reported an adjusted operating loss of 16 MEUR in Q1, which is slightly lower than anticipated and a smaller loss than in the comparison period. Seasonally, the first quarter is loss-making in the Learning business, but the segment still managed to slightly reduce its loss year-on-year, supported by revenue growth and the Solar efficiency program. However, Learning's loss narrowed slightly less than we anticipated, but at the same time, Media Finland's subscription sales growth and adjusted EBIT, strengthened by efficiency measures, increased from the comparison period, contrary to our expectations. Despite the revenue decline, Media Finland clearly improved its margin, which is a good performance (Q1’26 7.8% vs.   6.2% in Q1’25), and pushed Group-level earnings less into red than expected. On the lower lines, net financial expenses were slightly lower than we anticipated, and income statement taxes were more positive than expected. Considering this, Q1 adjusted EPS was less in red than expected at EUR -0.13.

We do not see pressure to change the estimates, which are at the midpoint of the guidance range

Sanoma reiterated its guidance for 2026, expecting revenue of 1.29-1.34 BEUR (2025: 1.3 BEUR) and adjusted EBIT of 205-225 MEUR (2025: 188 MEUR). Before the report, our and consensus estimates for revenue this year were around 1.31 BEUR, and the estimates for adjusted EBIT were 215-217 MEUR. Thus, the earnings estimates are at the midpoint of the earnings guidance range. According to our preliminary assessment, there is no significant upward pressure on the estimates, but our or the consensus estimates do not, in our view, include the recent small Vicens Vives acquisition. The company also reiterated the underlying assumptions of its guidance, stating that the demand for learning materials is expected to grow, driven by curriculum reforms in certain operating countries. In addition, the company assumes the Finnish advertising market to be relatively stable.