SANOMA OYJ Q1 2021 Interim Report:
Good start to the year driven by acquisitions and organic growth
Susan Duinhoven, President & CEO Markus Holm, CFO & COO
Good start to the year driven by acquisitions and organic growth
Net sales | Comparable net | Operational EBIT | Free cash | Net debt / | ||||
210m€ | sales growth | excl. PPA | flow | Adj. EBITDA | ||||
3% | -10m€ | -48m€ | 2.8 | |||||
(2020: 188) | (2020: 2%) | (2020: -8) | (2020: -60) | (2020: 3.0) | ||||
- Net sales grew both on a comparable basis and as a result of the acquisitions of the regional news media business in Finland and Santillana in Spain
- Operational EBIT excl. PPA improved in Media Finland while seasonally declining in Learning as the business grew with the acquisition of Santillana
- Free cash flow improved mainly driven by the divestment of Media Netherlands, whose seasonally negative free cash flow was included in the comparison period
- Leverage remained relatively stable at 2.8
- Updated Sustainability Strategy focusing on six themes was launched in March
- Outlook for 2021 unchanged
LEARNING
Solid performance in a seasonally small quarter
- Net sales grew to 68m€ (2020: 58)
- Some orders shifting from Q2 to Q1 e.g. in the Netherlands, Poland and Belgium
- Net sales of Santillana amounted to 4m€ (compared to 2m€ in Q1 2020)
- Operational EBIT excl. PPA declined to -20m€ (2020: -15) mainly driven by the acquisition of Santillana
- Q3 expected to become more prominent especially in 2021
- In Spain, seasonality even stronger and the business more focused on Q3 than in other operating countries
- Due to corona, ordering expected to be delayed from Q2 to Q3 e.g. in the Netherlands and Belgium
Operational EBIT excl. PPA
m€
90
39
-15 | -18 | -20 | |||||
Q1 20 | Q2 20 | Q3 20 | Q4 20 | Q1 21 | |||
Operational EBIT excl. PPA | |||||||
12-month rolling margin not reported due to incomparability caused by acquisitions
3 | Q1 2021 Interim Report |
MEDIA FINLAND
Net sales grew…
- Net sales grew to 142m€ (2020: 130)
-
The regional news media business contributed by
19m€, while adverse impact of Oikotie divestment was 6m€ - Subscription sales continued to grow driven by Helsingin Sanomat, where number of subscriptions grew by 6% yoy, and VOD service Ruutu+
- Comparable advertising sales declined by 4% against a relatively strong pre-pandemic start of 2020, Sanoma gained market share esp. in online
-
The regional news media business contributed by
4 | Q1 2021 Interim Report |
MEDIA FINLAND
…and earnings improved
- Operational EBIT excl. PPA improved to 11m€ (2020: 10)
- Synergies related to the acquisition of the regional news media business becoming visible
- Continued cost mitigation actions
- Lower paper prices
- Investments in growth initiatives resulted in somewhat higher digital development and personnel costs
- Sanoma received a decision from the Finnish Tax Adjustment Board that they have accepted a 20m€ claim excl. potential penalties and interests made by the Tax Ombudsman
- The claim concerned the treatment of VAT of certain magazines that were printed in multiple locations in Europe and distributed through a centralised logistics centre in Norway in 2015 and 2016-2018
- Sanoma continues to consider the claim fully unjustified and will appeal the decision - no provisions will be made
- Sanoma may pay the requested amount during 2021 - the Group's free cash flow will be adjusted for the payment for dividend calculation purposes
Operational EBIT excl. PPA
m€
16.8 % | ||||
12.3% | 24 | |||
10.7 % | ||||
7.3% | 16 | 17 | 7.9 % | |
10 | 11 | |||
Q1 20 | Q2 20 | Q3 20 | Q4 20 | Q1 21 |
Operational EBIT excl. PPA | Margin | |||
5 | Q1 2021 Interim Report |
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Sanoma Oyj published this content on 30 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 April 2021 05:43:08 UTC.
