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 16 Advertising, S.L. Unipersonal (absorbing company). This is a case of merger by absorption of a wholly owned company in accordance with the provisions of Article 49 of Law 3/2009 on structural changes to companies formed under the Spanish Commercial Code, as the absorbing company is the sole shareholder and direct holder of all of the shares representing the share capital of the absorbed company. The Common Terms of Merger were filed at the Madrid Mercantile Register on 22 June 2017. On 11 September 2017, the sole shareholder of Atres Advertising, S.L. Unipersonal, i.e. Atresmedia Corporación de Medios de Comunicación, S.A., approved the aforementioned merger, whereby the absorbed company was dissolved without liquidation, and approved the merger balance sheet, i.e. the most recent duly audited balance sheet as at 31 December 2016. The date from which the operations of absorbed company, which is extinguished, are deemed to be performed for accounting purposes by the absorbing company, is 1 January 2017. The merger deed was placed on filed at the Madrid Mercantile Register on 16 November 2017. This transaction did not have any impact on the Group's consolidated financial statements. Other changes not affecting the scope of consolidation in 2017 - On 16 February 2017, the Parent made a capital and share premium contribution of EUR 143 thousand and EUR 429 thousand, respectively, to associate Hola Televisión América, S.L. This did not result in any increase in its ownership interest in the company. - In December 2017 the Parent contributed capital to offset losses of EUR 1,249 thousand to its subsidiary Atresmedia Foto, S.L. Unipersonal and EUR 521 thousand to subsidiary Flooxplay, S.L. Unipersonal. These transactions did not result in a change in the percentage of ownership.