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ATRESMEDIA GROUP AND SUBSIDIARIES (CONSOLIDATED GROUP)
MANAGEMENT REPORT FOR THE YEAR ENDIND DECEMBER 31, 2014
Business performance and situation of the Group
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 6.4% 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 Group 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 Group's revenue amounted to EUR 850 million, compared to EUR 796 million euros in
2013. Other operating income amounted to EUR 33 thousand, in line with 2013. The Group's
total income amounted to EUR 883 million, up 6.4% on 2013.