Consolidated Annual Accounts 2017

2 Atresmedia has been running six television channels since the end of 2015, with a combined audience share of 26.6% in 2017, half a point lower than the year before. Declining audience share has been a common theme among all traditional network operators, to the benefit of the new channels launched in the spring of 2016 and pay-TV channels, given the increasing penetration of this type of television. Our share in commercial target, the most appealing for advertisers, stands at 28.5%, and in prime time at 29.8%. By channel, Antena 3 ended 2017 with a 12.3% share (-0.5), la Sexta with 6.8% (-0.3) and the four theme channel (Neox, Nova, Mega and Atreseries) with 7.5% (+0.3). For on-line activities, Atresmedia had 27.1 million unique monthly users, up 11.7% for 2016. Meanwhile, according to comScore, Atresmedia averaged 15.8 million unique users in 2017 and has been the leading audiovisual group on the internet for 21 straight months. Lastly, our Atresplayer video and audio platform registered an average of 2.4 million monthly users, also according to comScore. Considerable efforts were made to produce quality programmes that stand out from competitors. These yielded positive results, not only in terms of the audience statistics delivered by our channels, as noted, but also in their distribution beyond what has been the only exploitation window. Our international channels (Antena 3 Internacional, Atreseries and, investee Hola TV) raised their penetration in North and South America, and now have more than 50 million subscribers. Moreover, the individual sale of our fiction series are also well entrenched in international markets. “Velvet” and “Gran Hotel” are available in over 120 countries, “Mar de Plástico” and “El tiempo entre costuras” in over 70, “Vis a Vis” and “El Secreto de Puente Viejo” in over 60, and “La casa de papel”, “El Barco” and “El Internado” in over 35. Atresmedia's share price ended 2017 at EUR 8.70, down 16.3%. Many of Europe's media stocks also slumped during the year, amid concerns after advertising spend underperformed expectations at the beginning of the year. This was in stark contrast to the IBEX 35, which notched up a 7.4% gain in 2017. Revenue in 2017 amounted to EUR 799.7 million, down slightly from EUR 802.8 million in 2016. Net operating revenue, which adds revenue from these activities to advertising revenue, amounted to EUR 858.7 million, up 0.8% on 2016 Operating expenses totalled EUR 739.7 million, practically matching the EUR 738.5 million of 2016 and illustrating the rigorous cost-control policy applied despite increasing competition in the sector. Profit from operations in 2017 amounted to EUR 119 million, up 4.6% from the year before. Profit before tax rose 1.1% in the year, to EUR 158.1 million, while net profit reached EUR 137.3 million, up 10.3% from EUR 124.5 million in 2016.