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ATRESMEDIA CORPORACIÓN MEDIOS DE COMUNICACIÓN, S.A.
MANAGEMENT REPORT FOR THE YEAR ENDIND DECEMBER 31, 2014
Business performance and situation of the Company
The Spanish economy has been on a clear road to recovery throughout 2014, in line with the
improvement that began in autumn 2013. Relief from financial stress brought about an
increasingly greater dynamism in domestic demand. Both investments and private
consumption have gone on to witness increasingly positive changes. The latter -particularly
relevant to our business activity- rebounded from a 2.3% drop in 2013 to more than 2%
growth in an initial estimate for 2014. Although still at very high levels, the unemployment
rate fell for the first time since the start of this lengthy crisis.
Against this backdrop, it is not surprising that the advertising market has reacted in
extraordinarily positive fashion. Compared with an 8.1% fall in 2013, it is estimated that the
conventional media market on the whole grew by 5% in 2014. Even more important was the
change in the television advertising market, which bounced back from a 6.2% fall to grow by
more than 10% - an improvement that was already presaged in the final quarter of 2013.
Television advertising represents 42% of the total market, proving once again that it is the
most powerful and effective means for advertisers.
The most significant event for the Atresmedia in 2014 was the loss of three channels as a
result of the enforcement of a judgment handed down by the Supreme Court on 27 November
2012, which rendered null and void the resolution of the Spanish Cabinet of 16 July 2010 to
allocate a national digital multiplex made up of four channels to each of the digital terrestrial
television (DTT) license holders. Irrespective of the claim for damages filed as a result of the
damage suffered by the shutdown of these three channels, the fact is that we have been the
most adversely affected operator, not only because we have lost the most channels but also
because these channels, due to the investment efforts made and the talents applied, had the
highest audience ratings. It should be noted that this effort formed part of the commitments
we acquired under the former regulation, which sought to make the rollout of DTT a success -
which indeed it was- while giving in return the allocation, which has now been rendered void,
to balance the efforts made.
However, it has been possible to mitigate this impact and achieve an average audience of
27.7% in 2014, down only 1.1 points on 2013. The Antena 3 channel rose 0.2 points to
13.6% and held its lead with 13.8% of the target audience (individuals aged 16-54 in places
with more than 10,000 inhabitants). In spite of a lack of sporting events, La Sexta increased
from 6.0% to 7.2%, the highest figure in its history. Together with the commercial efforts
undertaken, this brought the market share to nearly 42%, down only 0.8 points.
The Company's revenue amounted to EUR 704 million, compared to EUR 652 million euros in
2013. Other operating income amounted to EUR 30 thousand, in line with 2013. The
Company's total income amounted to EUR 734 million, up 8% on 2013.