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Subsequently, all risks are assessed based on the estimated impact and probability, in line with two
criteria:
−
Impact: Classified in accordance with the negative impact of the occurrence of the risk on results or on
business continuity.
−
Probability: That the risk becomes apparent regardless of whether the controls are sufficient and
reduce the risk to acceptable levels.
E.5
Indicate
the risks which have arisen in the year.
On 27 November 2012, the Supreme Court Room Three handed down a Ruling dismissing the Council of
Minster's Resolution of 16 July 2010, which had assigned to each of the digital terrestrial television (DTT)
service licence holders, including Antena 3 de Televisión, S.A. (now Atresmedia Corporación de Medios de
Comunicación, S.A.) and Gestora de Inversiones Audiovisuales La Sexta, S.A., the capacity equivalent to a
multiple state digital coverage integrated by four channels.
On 22 March 2013, the Council of Ministers adopted a resolution for the enforcement of the
aforementioned Supreme Court Ruling. This resolution stipulated the obligation to cease to broadcast the
channels which had been affected by the previous rejection of the Council of Minister's Resolution of 16
July 2010, but likewise the continuity of the broadcasts was authorised on a transitory basis, in order to
safeguard the general interests arising from the release of the digital dividend up to the culmination of
this process.
Subsequently, on 18 December 2013, the Supreme Court handed down an Order to enforce this Ruling
which, among other matters, partially dismissed the aforementioned Council of Minster's Resolution and,
furthermore, determined the channels affected by the Ruling arising from this Order, which includes three
of those which are currently operated by Atresmedia.
On 06 May 2014, following the enforcement of this Supreme Court ruling, the three channels affected by
the decision ceased to broadcast: Nitro, Xplora and La Sexta 3. The motive for this legal decision was an
unrectifiable flaw in technical legislation in the preparation of legal rules which enabled these channels to
be awarded, but at no point, did it question whether Atresmedia fully complied with all the obligations
imposed at the time to be entitled to operate.
At that time, Atresmedia assessed the accounting impact that the closure of these channels may have on
the individual and consolidated financial statements, in accordance with accounting regulations. This
assessment did not disclose the need to register any liabilities or commitments related with this closure
of channels. It was not considered necessary either to report any impairment or change in the
measurement of assets, except that relating to certain broadcasting rights of specific programmes relating
to the fact that the broadcasting probabilities were substantially reduced by the closure of these three
channels, in respect of which the related impairment allowance was recognised.
Likewise, following the cessation of these channels, the Atresmedia Group submitted the related personal
liability claim to the Council of Ministers arising from the serious economic damages and losses suffered
by Atresmedia as a result of the obligation to cease broadcasting such three television channels. The
serious economic losses incurred by Atresmedia are basically the result of the loss of audience with
respect to such channels, the competitive disadvantages of having a more limited offering than that of its
main rival and, lastly, the reduced income reported from the sale of advertising slots to the advertisers in
the three channels closed.
E.6
Explain the response and supervision plans for the entity's main risks.
The Atresmedia Group has defined a series of response plans for the different risks identified. Moreover,
for those risks which materialise or have a greater probability of materialising, a superior monitoring and
follow-up process exists, implemented both by the business management/organisational unit and by the
Group's senior management.
The responses to the existing risks are classified into 4 sections:
−
Prevent
−
Accept
−
Reduce