Consolidated Annual Accounts 2017

Atresmedia Corporación de Medios de Comunicación, S.A. and Subsidiaries Translation of consolidated financial statements originally issued in Spanish and prepared in accordance with the regulatory financial reporting framework applicable to the Group in Spain (see Notes 2 and 29). In the event of discrepancy, the Spanish-language version prevails. 2017 CONSOLIDATED FINANCIAL STATEMENTS 10 Standards and interpretations issued but not yet effective: At the date of preparation of these consolidated financial statements, the most significant standards and interpretations that had been published by the IASB but which were not yet effective, either because their effective date is subsequent to the date of the consolidated financial statements or because they had not yet been adopted by the European Union, are discussed below. New standards, amendments and interpretations: Mandatory application for annual periods beginning on or after: Approved for use in the European Union IFRS 15 Revenue from Contracts with Customers (issued in May 2014) New revenue recognition standard (supersedes IAS 11, IAS 18, IFRIC 13, IFRIC 15, IFRIC 18 and SIC-31). 1 January 2018 IFRS 9 Financial Instruments (last phase issued in July 2014) Replaces the requirements in IAS 39 relating to the classification, measurement, recognition and derecognition of financial assets and financial liabilities, hedge accounting and impairment. Clarifications to IFRS 15 (issued in April 2016) Involves identifying performance obligations, principal versus agent considerations, grants of licenses and their accrual at a point in time or over time, and certain clarifications regarding transition relief. IFRS 16 Leases (issued in January 2016) Supersedes IAS 17 and the related interpretations. Attempt to identify leases and their accounting treatment 1 January 2019 Not yet approved for use in the European Union at the date of publication of this document Amendments to IFRS 2 Classification and Measurement of Share-based Payments (issued in June 2016) Narrow-scope amendments clarifying specific issues, such as how vesting conditions affect cash-settled share-based payments. 1 January 2018 IFRIC 22 Foreign Currency Transactions and Advance Consideration (issued in December 2016) This interpretation establishes the date of the transaction for the purposes of determining the exchange rate applicable to foreign currency transactions and advance consideration IFRIC 23 Uncertainty over Income Tax Treatments (issued in June 2017) Clarifies how to apply the recognition and measurement standards of IAS when it is uncertain that the taxation authority will accept a specific tax treatment used by the entity 1 January 2019 Amendments to IFRS 9 Prepayment Features with Negative Compensation (issued in October 2017) The amendments allow the measurement at amortised cost of some financial instruments with prepayment features, allowing payment of an amount that is less than the unpaid amounts of principal and interest IFRS 15 Revenue from Contracts with Customers IFRS 15 is a new standard that outlines a single comprehensive model for recognising revenue from contracts with customers which, for annual periods beginning on or after 1 January 2018, will supersede the following standards and interpretations currently effective: IAS 18 Revenue , IAS 11 Construction Contracts , IFRIC 13 Customer Loyalty Programmes , IFRIC 15 Agreements for the Construction of Real Estate , IFRIC 18 Transfers of Assets from Customers and SIC-31 Revenue – Barter Transactions Involving Advertising Services . In accordance with the new requirements of IFRS 15, revenue should be recognised to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Specifically, it establishes a five-step approach to revenue recognition: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price.