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 52 c) Market risk (interest rate and currency risk) The Group's cash and borrowings are exposed to interest rate risk, which could have an adverse impact on its financial performance and cash flows. The Group's financing is arranged at interest rates tied to Euribor. Based on the level of borrowings at 31 December 2017, a 100 basis point increase or decrease in the average interest rate on the debt would result in a +/- EUR 2.6 million change in the interest on the borrowings at that date (2016: +/- EUR 1.8 million). To mitigate this risk, the Parent has entered into interest rate swaps (IRSs) to reduce its exposure to variable rates (see Note 15). Foreign currency risk is concentrated in the Parent and relates basically to payments in international markets to acquire broadcasting rights. To mitigate foreign currency risk, the Parent enters into hedging instruments, mainly currency forwards, to hedge its exposure to the USD/EUR forward exchange rate. Sensitivity to changes in exchange rates is described in Note 14. 19. Revenue and expenses a) Revenue Group revenue in 2017 and 2016 by business line: Thousands of euros 2017 2016 Advertising sales 961,946 965,060 Other sales 69,391 42,379 Trade and other discounts (47,368) (44,856) Total 983,969 962,583 In 2017, transactions exceeding 10% of total operating income were conducted with three customers -media buyers grouping together advertising orders of various advertisers- with individual shares of 12-13% and representing a combined 38% of total advertising sales. In 2016, transactions exceeding 10% of total operating income were conducted with two customers -media buyers grouping together advertising orders of various advertisers- with individual shares of 17% and 13%, representing a combined 30% of total advertising sales.