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Investing.com -- Sanoma shares fell 3% after the company reported third-quarter results and narrowed its full-year guidance.
The company posted net sales of €516 million for the quarter, which aligned with market expectations. Organic net sales declined by 5% year-over-year, with similar trends observed in both the Learning and Media Finland divisions.
Operational EBIT excluding PPA amounted to €172 million, exceeding consensus estimates by 3%. This outperformance was driven by stronger results in Media Finland, where higher subscription sales and cost discipline boosted profitability.
The company reported free cash flow of €138 million, up 4% compared to estimates of €132 million. The improvement primarily stemmed from more favorable working capital contributions. For the first nine months of 2025, free cash flow increased 13% year-over-year, strengthening the likelihood that Sanoma will meet its guidance for improved cash flow this year.
Sanoma narrowed its 2025 guidance, as is customary with its third-quarter earnings release. The company now expects net sales of €1.29-1.31 billion, compared to the previous range of €1.28-1.33 billion. Operational EBIT excluding PPA is projected at €180-190 million, tightened from the previous guidance of €170-190 million.
The negative deviation in reported EBIT was attributed to impairments in both Learning and Media divisions, as well as restructuring costs associated with closing a printing plant in Tampere.
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