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4
On 22 March 2013, the Spanish Cabinet adopted a resolution to comply with the judgment of
the Spanish Supreme Court of 27 November 2012, indicating that the affected channels must
cease broadcasting and associating this process with the freeing up of the digital dividend.
Subsequently, on 18 December 2013, the Spanish Supreme Court issued an order enforcing
the aforementioned judgment, referring, inter alia, to the channels affected by its judgment,
which would include three of the channels currently being operated by Atresmedia.
On 6 May 2014, as a result of the enforcement of the aforementioned judgment of the Spanish
Supreme Court, the channels affected by the decision, three of which are operated by
Atresmedia (Nitro, Xplora and La Sexta 3) ceased to be broadcast, despite having complied
with all the imposed obligations.
The accounting impact of the closure of these channels on the separate and consolidated
financial statements was assessed in accordance with applicable accounting legislation. The
assessment did not disclose the need to recognise liabilities or commitments related to the
closure of the channels, and it was not necessary to recognise any impairment losses or
changes in value in accordance with applicable accounting legislation, except in relation to the
rights to broadcast certain programmes, which has been made impossible due to the closure
of the aforementioned channels, and for which an impairment loss of EUR 3 million was
recognised (see Note 9).
Without prejudice to the aforementioned accounting impact, Atresmedia brought an action for
the damages and losses suffered as a result of the closure of these three channels.
Also, three appeals were filed at Judicial Review Chamber Three of the Spanish Supreme Court
against the resolutions of the Spanish Cabinet of 28 May and 11 June 2010, under which the
concessions to operate a public television service were transformed into licenses to provide an
audiovisual communication service. If these appeals are upheld, another eight digital
terrestrial television channels, two of which belong to Atresmedia, would be required to cease
broadcasting. In this connection, we have also complied with all the obligations imposed on us
for the operation of these channels and, accordingly, we do not expect this closure not to go
ahead. In any event, an estimate was made of the impact of a hypothetical switch-off. This
impact is related to the broadcasting rights that might exist at the date of the judgment and
the deadline for enforcement thereof, and a potential impairment loss of between EUR 6
million and EUR 12 million was estimated.
In September 2014 the Spanish Government approved a new Technical Plan for Digital
Terrestrial Television under which, in addition to the channels currently being broadcast,
frequencies for five additional channels are to be made available which the Government will
allocate by means of a competition, in accordance with the General Audiovisual Law. However,
at the reporting date no further details on this process are known.
In relation to the renewal of the public radio broadcasting service concessions operated by
Uniprex, S.A. (Sole-Shareholder Company), to date, applications have been submitted to the
competent authorities, in accordance with the legislation in force, for the renewal of
concessions about to expire and for authorisation of a change of operator in other concessions.
In certain cases the renewal of the concession was granted expressly, whereas in others it was
obtained by the administrative silence route after the pertinent appeals were filed with a
higher administrative body, in accordance with Article 43 of the Public Authorities and
Common Administrative Procedure Law.
The other Group companies engage mainly in activities relating to the production, reproduction
and broadcasting of sounds and images.