”In 2024, we made good progress on our strategic focus areas of increasing the profitability of Learning and Media Finland and deleveraging the Group's balance sheet. We also continued building on the long-term strengths of both businesses. As a result, our operational EBIT excl. PPA increased and our free cash flow improved strongly – by EUR 40 million or 38% – from the previous year.

During the year, we have strengthened our digital offering in both Learning and Media. Examples of this in Learning include successful launches of the new Sanoma platform in Italy, the eduVULCAN platform in Poland and the itslearning development project with several German states. Across Media Finland, we have renewed our way of working to be even more customer focused and to bring new digital propositions faster to the market. Examples of these include the launches of Ilta-Sanomat (IS) Extra, a subscription-based digital tabloid, and +Kaikki, a bundle subscription including all Media Finland's digital consumer products.

We continued to move forward with our AI initiatives and launched new services empowered by generative AI, with a strong emphasis on its responsible use and human oversight. In Learning, we concluded multiple AI pilots across our markets, including AI driven survey tool and text-to-speech implementation in tests. The development of AI tools and services also progressed in journalism, driven, for example, by the HS-IS (Helsingin Sanomat - Ilta-Sanomat) AI Lab delivering services like news summaries and news bots. In audio, generative AI was used, for example, for weather reports and DJ slots.
In Learning, net sales decreased driven by the planned discontinuation of low-value distribution contracts in the Netherlands and Belgium and the divestment of Stark. In the learning content business, growth in other learning content markets, in particular Poland and the Netherlands, more than offset the decline of net sales in Spain that resulted from the lower curriculum cycle.

Program Solar is now materially complete, with more than 80% of the actions taken by the end of 2024 in line with our original plan. The first impacts of the program were already visible in our 2024 free cash flow through a lower cost base and lower investments. 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, both digital subscription and digital advertising sales continued to develop positively. Growth in digital subscriptions was driven by the SVOD service Ruutu+, where the subscription base reached its all-time-high. The digital news media subscriptions are developing favourably, driven especially by Helsingin Sanomat (HS). Digital advertising continued to grow despite the fact that the overall demand for advertising weakened slightly towards the end of the year. We are happy to see the results of the continued improvement in operational efficiency and lower paper costs in the increased profitability.

The deleveraging of our balance sheet took a major step forward during the year. Our net debt and leverage improved year-on-year and Net debt / Adjusted EBITDA was well within the long-term target of < 3.0. We also refinanced a key part of our external loan portfolio by issuing a EUR 150 million 3-year Social Bond in September.

The Board proposes a dividend of EUR 0.39 (2023: 0.37), corresponding to 44% of the 2024 free cash flow. This proposal reflects our ability to deliver increasing free cash flow and it balances the capital use between the dividend, which continues to be an important part of our equity story, and the continued deleveraging of the balance sheet.

We have a unique sustainability profile as learning and media have a positive impact on the lives of millions of people every day. To support the purpose of our businesses, we have set ambitious targets for sustainability aspects in which we have the biggest impact and we performed well against these targets in 2024. The Employee Experience Index (EEI) was relatively stable at 7.4 (2023: 7.5), being close to our long-term target level. Sustainability targets related to data, privacy & AI, employee engagement and climate are also linked to the executive management’s short-term incentives. Our full sustainability performance will be included in the Sustainability Report, prepared for the first time according to European Sustainability Reporting Standards (ESRS) and to be published as part of the Report of the Board of Directors in week 14 (starting 31 March 2025).

Our Outlook for 2025 indicates lower net sales and relatively stable operational EBIT excl. PPA compared to 2024. In Learning, we expect growth in most of our learning content businesses to more than offset the impact of the last year of the lower cycle in Spain, while the discontinuation of low-value contracts in the Dutch distribution business will continue. In Finland, we expect the advertising market to be relatively stable and modest growth in subscriptions to continue.

Our focus remains on increasing our profitability and free cash flow, while the upcoming curriculum renewals in our major learning markets, particularly Poland and Spain, are expected to accelerate organic growth from 2026 onwards. In Media Finland, we are continuing and accelerating our successful digital transformation. We aim to also expand through value-creating M&A in K12 learning services, while being committed to meeting our leverage and equity ratio targets and paying an increasing dividend, equal to 40–60% of our annual free cash flow.

I would like to extend my warmest thanks to all Sanoma employees for their excellent work in delivering these good results and for their strong commitment and passion in supporting our customers. We are in a great position to continue on our strategic path, to grow and further strengthen our business, improve our performance, and create value for all our stakeholders. I am looking forward to a successful 2025.”

11 February 2025