Sanoma is comprised of two divisions: Consumer Media and Learning. The company reported net sales and profits for Sanoma Media Netherlands, Sanoma Media Finland and Sanoma Learning.
This ranking includes only Sanoma Learning, which is a leading European provider of education materials and solutions in print and digital formats.
The Media segment includes magazine, TV, radio and online businesses in eleven European countries and comprises four strategic business units: Sanoma Media Netherlands, Sanoma Media Finland. Sanoma Media Belgium and Sanoma Media Russia & CEE are reported as “others.” Sanoma has been focused on consumer media and learning operations since 2012.
Key Company Developments in 2013 & 1st Half Year 2014
Financial
In fiscal 2013, Sanoma’s net sales decreased by 6.6% and amounted to 2.22 billion EUR, down from 2.38 billion EUR in 2012. The decrease is mainly related to continued declines in advertising and single copy sales. When adjusted for changes in the Group structure, net sales decreased by 6.6%
The Learning segment’s net sales decreased by 2.5% to 305 million EUR due to structural changes, which also affected net sales by 0.6%. Sanoma’s divestment of its Hungarian education business creates a dip in profits down by 35 million EUR.
Ownership, Mergers & Acquisition, Internal Organization
Sanoma appointed John Martin as new CEO of Sanoma Learning. He will succeed CEO Jacques Eijkens, who served as chief strategy and digital officer at Sanoma since 2011, in the first quarter of 2014. Sanoma Learning is in the midst of transformation as Sanoma works to expand from publishing to provide solutions and services. Sanoma will accelerate growth by consolidation and plans to move into tutoring and emerging markets.
Sanoma Digital was established for consumer media, with the plan to speed up growth of digital services.
In October 2013, Sanoma sold its Learning operations in Hungary. Net sales were 13 million EUR. As a result of the transaction, Sanoma recognized in 2013 a capital loss of 35 million EUR. The divestment was made after a long period of poor conditions in the Hungarian education market.
In March 2014, Sanoma Learning acquired the Belgian school- and teacher management software company Pronoia, a provider of online software programmes under the brand Schoolonline for preschool, primary and secondary education.
International
According to Sanoma’s strategy to enter emerging market, a 9-member business delegation headed to China and Korea to meet with potential learning partners.
Digital
To accelerate the development of next-generation learning solutions for mathematics, Sanoma Learning signed a partnership agreement with Kikora, a provider of semantic math e-learning solutions. “The partnership with Kikora and the launch of the digital platform are important parts of our growth strategy, and aim to solidify our position as a leader in the market of next-generation digital learning solutions.” says Jacques Eijkens, former CEO of Sanoma Learning.
Earlier Developments
Financial
In 2012, Sanoma’s net sales were stable and amounted to 2.38 billion EUR as last year’s figures were corrected from 2.75 billion EUR to 2.38 million EUR. Declines were offset by well-performing print operations in the Netherlands and Belgium as well as increased sales of the Learning segment. Weak advertising numbers adversely impacted the Media and News segments.
Net sales for Learning increased by 7.5% to 312 million EUR based on the adjustment of last year’s figures (from 343 million EUR to 291 million EUR).
The Learning business unit’s net sales increased by 19.4% to 306 million EUR. In the Netherlands, net sales increased slightly while the market decreased. In Belgium, sales increased and the market position in primary education continued to strengthen, supported by online solutions. In Finland, net sales grew, driven by new online services and acquisitions. In Sweden, net sales grew from improved market share. In Hungary, upcoming reforms caused uncertainty in spending. In Poland, sales increased significantly as Sanoma strengthened its market position after a curriculum reform.
Ownership, Mergers & Acquisition, Internal Organization
On March 5, 2012, Sanoma announced that it had signed an agreement to sell its kiosk operations in Finland, Estonia and Lithuania as well as its press distribution operations in Estonia and Lithuania. In April, Sanoma divested its book logistics company Porvoon Kirjakeskus Oy. The business information service provider Esmerk was divested in June 2012. The most significant transactions in the comparable year were the acquisition of the Finnish educational publisher Tammi Learning (now part of Sanoma Pro) and the Swedish educational publisher Bonnier Utbildning (now Sanoma Utbildning).
International
Corporate net sales by country include 37% from the Netherlands, 36.6% from Finland, and 11% from Belgium. Net sales from other EU countries totaled 10.7% and non-EU countries accounted for 3.9%.
Click here to return to the full listing of the world's largest publishers.
