Annual And Corporate Responsibility Report 2017

To raise awareness of the Group’s business model and unlock the value of its business, Atresmedia regularly stages events for analysts and investors. At these events , the head of one or other of the Company’s divisions or departments discusses the main business variables and responds to questions and doubts raised by those in attendance. The most popular subjects of discussion with the financial community include: Performance of the advertising market for both television and other media (month to month, and outlook for 2018) Although monthly market data does not qualify as official data, Atresmedia still checks the data for signs of changing trends and patterns within the media sector. Official data are published quarterly and are provided by two main external sources: Infoadex and Arce. In early 2017, the market is offered advertising growth “guidance” for the period. However, visibility remains extremely poor, at no more than two or three weeks. As the year progresses, quarterly data will gradually shed more light on the situation and growth guidance can be modified accordingly. Quarterly performance of investment in advertising by advertiser sector The automotive, health and beverages sectors were consistently the biggest investors in advertising during 2017, as shown by the quarterly figures. Telecom companies, while buying slightly less advertising time in the first quarter, remained committed to their campaigns during the following three quarters of the year. Meanwhile, the hygiene and beauty sector reversed the trend seen in the first three quarters (falling levels of investment) to close out the year with 1% growth. Impact that new technologies and new ways of watching television are having on traditional TV figures and relationship to investment in advertising Consumption of audiovisual content on platforms other than traditional television has had a significant impact on linear television consumption. Nonetheless, market figures reveal that while live television is loosing minutes, non-linear television has been rallying. If television consumption drops, the format will lose audience coverage. However, at Atresmedia the drop in coverage due to lower television consumption has been offset by an increase in advertising occupancy and in prices. On balance, investment in TV advertising has not been adversely affected in either absolute or relative terms. Television remains the most effective format and offers the best coverage when advertising products and brand names. Penetration of pay TV and OTT. The Company's positioning in the digital world While it is certainly true that the market penetration of pay television has climbed from 23.1% to 34% in the last four years, the share of the audience of pay channels has failed to surpass 8%, whereas traditional television accounts for 92%, showing that linear television coverage is still far higher than the coverage of OTT platforms. 7. OUR CONTRIBUTION  | 113 | ATRESMEDIA  |  ANNUAL AND CORPORATE RESPONSIBILITY REPORT 2017