Translation of a report originally issued inSpanish. In the event of a discrepancy, the Spanish-language version prevails.
ATRESMEDIACORPORACIÓNDEMEDIOSDECOMUNICACIÓN,
S.A.
DIRECTORS' REPORT FOR2013
Business performance and situationof theCompany
In 2013 economic activity in Spain displayed a gradual improvement
in stark contrast to events in 2012. The easing of financial tensions in
Southern Europe and in Spain in particular led to less restrictive
economic policies. Both of these events resulted in an improvement in
investment, consumption and employment indicators, coupledwith the
favourable developments already witnessed in the external sector.
Although the known data are far from satisfactory, they have had a
positive impact on the advertising market, itself bolstered by the
improved situation or expectations of the advertisers' markets.
Estimates place the decline in the advertisingmarket at 8.1% in 2013,
smaller than the 16.0% drop in 2012. The quarter-by-quarter
performance was of particular note, recovering from a double-digit
year-on-year drop in the first quarter to slight growth in the fourth.
However promising the trend may be, the fact remains that, for yet
another year, advertising expenditure has dropped very significantly
again this year and 2013 figures equalled those for 1998, 15 years
ago. Television advertising performed better than average, with a
6.2% decline, while radio fell by 11.0%.
2013 saw the consolidation of the television model launched in 2012
with themerger by absorption of Gestora de Inversiones Audiovisuales
La Sexta, S.A. into the Company. As regards audience, Atresmedia
attained an average share of 28.8% in 2013, representing an increase
of three points - the highest of all television groups. Our main
channels, Antena 3 and La Sexta, were the fastest growing national
channels, growing by 1.0 and 1.1 points, respectively. Our share of
the television advertising market also grew by 1.3 points. Lastly, the
synergies obtained in costs were higher than initially expected and the
merger was completedwith the greatest of success.
