5
on an on-going basis. In this field Atresmedia Corporación de Medios
de Comunicación, S.A. has and uses state-of-the-art technology,
which enables it to be at the forefront in the deployment of digital
activities and in the Internet.
Treasury share acquisitions
No transactions involving treasury shares were performed in 2013.
The Company therefore continued to hold 15,818,704 treasury shares
of EUR 0.75 par value each, representing 7.01% of its share capital.
Useof financial instruments by theCompany andmain financial risks
The Company performs transactions with financial instruments mainly
to hedge the foreign currency risk on the purchases of broadcasting
rights in the year.
At 31 December 2013, the Company 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 Company has established the risk management systems required
to ensure that transactions in markets are performed in accordance
with its established policies, rules and procedures and within the limits
approved for each case. The Company’s main financial risks are as
follows:
a) Foreign currency risk. Foreign currency risks relate mainly to the
payments to be made in international markets to acquire broadcasting
rights. In order to mitigate this risk, the Company arranges hedging
instruments (mainly foreign currency hedges).
