Sanoma: Stability and strength in the books

The learning business generates good 2/3 of Sanoma’s result, which makes a majority of income flows defensive and their risk level is low. We expect these characteristics to strengthen in the future, as we expect the company to continue acquisition-driven growth in the learning business. We estimate that the expected return for the next few years consists of attractive dividend yield and moderate earnings growth. This, together with Sanoma’s low risk level creates in our view a good risk/return ratio. The learning business generates good 2/3 of Sanoma’s result, which makes a majority of income flows defensive and their risk level is low. We expect these characteristics to strengthen in the future, as we expect the company to continue acquisition-driven growth in the learning business. We estimate that the expected return for the next few years consists of attractive dividend yield and moderate earnings growth. This, together with Sanoma’s low risk level creates in our view a good risk/return ratio.