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concentration of credit risk exposure to third parties and no noteworthy incidents arose in
2014. The percentage of past-due receivables at 31 December 2014 was 5.2%.
The Corporate Governance Report includes an extensive summary of the risk control systems.
b) Liquidity risk
The Group’s liquidity policy is to arrange credit lines and short-term investments that are
sufficient to support its financing needs, on the basis of expected business performance. All of
the foregoing are tied to floating interest rates (see Note 13).
c) Market risk (including interest rate and foreign currency risk)
Both the Group’s cash and its bank borrowings are exposed to interest rate risk, which could
have an adverse effect on financial profit or loss and cash flows. The Group's financing is
arranged at interest rates tied to Euribor. In view of the bank borrowings at 31 December
2014, changes of 100 basis points in the total cost borne would give rise to a +/- EUR 2
million change in the debt at that date. To mitigate this risk, the Parent has arranged interest
rate swaps to limit the finance costs arising from its floating-rate borrowings (see Note 14).
Foreign currency risk is concentrated at the Parent and relates basically to the payments to be
made in international markets to acquire broadcasting rights. In order to mitigate foreign
currency risk, the Parent arranges hedging instruments, mainly currency forwards, to hedge
its exposure to the EUR/USD forward exchange rate. Sensitivity to changes in the exchange
rate is described in Note 14.
18.
Income and expenses
a)
Operating income
The breakdown, by line of business and geographical market, of the Group's revenue for 2014
and 2013 is as follows:
Thousands of euros
2014
2013
Advertising sales
858,017
800,482
Other sales
29,578
28,116
Trade and other discounts
(37,704)
(32,824)
Total
849,891
795,774
In 2014 transactions exceeding 10% of total operating income were performed with three
customers (media buyers grouping together advertising orders of various advertisers), which
represented 19% and 18% (individually) and 37% (as an aggregate) of total advertising sales.
In 2013 transactions exceeding 10% of total operating income were performed with three
customers (media buyers grouping together advertising orders of various advertisers), which
represented 17%, 16% and 13% (individually) and 46% (as an aggregate) of total advertising
sales.