Treasury share acquisitions
No transactions involving treasury shares were performed in 2013. The Parent therefore
continued to hold 15,818,704 treasury shares of EUR 0.75 par value each, representing
7.01% of its share capital.
Use of financial instruments by theGroup and
main financial risks
The Group performs transactions with financial instruments to hedge the foreign currency risk
on the purchases of broadcasting rights in the year.
At 31 December 2013, the Parent had arranged instruments to hedge its foreign currency
asset and liability positions amounting to USD 89,863 thousand, at a weighted average
exchange rate of EUR 1.3117/USD 1. The net fair value of these hedging instruments gave
rise to a financial asset of EUR 698 thousand and a financial liability of EUR 3,232 thousand at
year-end.
Also, interest rate swaps were arranged in order to fix the financial cost arising from the
floating rates established in the syndicated financing agreement entered into in August 2013.
The fair value of these swaps at 31 December 2013 gave rise to a financial asset of EUR 5
thousand.
The Group has established the riskmanagement systems required to ensure that transactions
inmarkets are performed in accordance with its established policies, rules and procedures and
within the limits approved for each case. The Group’smain financial risks are as follows:
a) Foreign currency risk. The Group’s foreign currency risks relate mainly to the payments to
be made in international markets to acquire broadcasting rights. In order to mitigate foreign
currency risk, the Group arranges hedging instruments, mainly currency forwards.
b) Liquidity risk. The Group’s liquidity policy is to arrange credit lines and short-term
investments that are sufficient to support its financial needs, on the basis of expected
business performance.
c) Credit risk. The Group does not have significant credit risk since the average customer
collection period is very short and guarantees are required for deferred payment sales. Cash
placements are made and derivative instruments are arranged with institutions of recognised
solvency.
d) Interest rate risk. Both the Group's cash and its bank borrowings are exposed to interest
rate risk. The Group's financing is arranged at interest rates tied to Euribor. To mitigate this
