Message from the Chief Executive Officer

For the first time, we present to you a single document that, at the same time, fulfils a need and answers a concern. We are under a statutory duty to account to the public regarding non-financial matters; we are also historically committed to transparency facing our stakeholders. Until now, these two duties were discharged with two separate documents. By integrating those two documents into a single publication we hope to fulfil both of those goals, providing specific information with the rigour and transparency in which we take pride.

The complexity and the swift pace of change we now see in the audiovisual industry lends a fresh meaning to our corporate purpose and reinforces our belief that, through reflection and emotion, we shall find the right answers to the economic, technological and social challenges we now face. In 2019, the advertising market and consumer trends continued to transform and evolve, as witnessed in previous years. However, yet again this year, television proved to be advertisers’ preferred medium due to its effectiveness and reach. Every year, the Group strengthens and extends its proven capabilities in terms of the quality, innovativeness and popular appeal of our media formats. That is why we are still a powerfully attractive linear platform in the audiovisual market. In 2019, advertisers’ trust and Atresmedia’s ambition to retain its leadership encouraged the Group to review and relaunch its advertising strategy: from now on, we will be integrating the linear and digital environments within a single audiovisual market where the offering to advertisers will be hybrid and segmented.

Despite a tumultuous 2019, our results prove that over the year we worked on the right things. We ended the year with revenue of EUR 1,039 million, EBITDA of EUR 183.9 million and consolidated profit of EUR 118 million. 02 MESSAGE FROM THE CHIEF EXECUTIVE OFFICER Our belief in our business model and content, guided by principles of quality, innovation and social sensitivity, continued to deliver strong results. Yet again, surveys showed we are perceived as the best media company across variables such as quality, variety and popular appeal of our content, and in our social sensitivity and viewpoint diversity. Our news programmes enjoy high credibility, and topped the league table for the second consecutive year. We are strongly determined to fight misinformation and “fake news”. Our use of augmented reality technology brings current affairs to our viewers’ attention in a more appealing, visual and attractive way. Our efforts to ensure that the general public receives the best news reporting were recognised by the Reuters Institute, which acknowledged Antena 3 Noticias and laSexta Noticias as the leading news sources for the Spanish public in terms of credibility and trust.

We are grateful for the milestone achievements of the year: every day, 21.5 million people chose our channels for news and entertainment, making us the Spanish communications group with the largest daily audience for our content; in addition, 3.5 million people tuned into our radio stations.

We are grateful for the milestone achievements of the year: every day, 21.5 million people chose our channels for news and entertainment, making us the Spanish communications group with the largest daily audience for our content; in addition, 3.5 million people tuned into our radio stations every day. Our international channels now reach 59 million households around the world. By revamping our Atresplayer Premium streaming platform and our web content, we ended the year as the leading online media company, with 26 million unique users.

An example of our leadership that shows why the audience chooses us was the premiere of La Voz in 2019. This was the most-watched television entertainment production of the past six years. Moreover, the Premios Ondas prizes acknowledged the quality of our radio programming by awarding the Ondas Nacional de Radio accolade to our show Más de uno.

The Group’s fiction output is synonymous with innovation, creative partnership, rising demand and success. In 2019, our strategic alliance with Telefónica to produce and distribute content enabled Atresmedia to scale up and become the undisputed leaders in fiction creation for the Spanish and international markets. A further feature of this partnership was that Atresmedia Cine became a division of Atresmedia Studios, further strengthening our position as a global audiovisual content factory. Atresmedia’s films drew acclaim from the public and made EUR 29 million at the box office. We won Spanish and international awards: 10 Goyas for our motion pictures El Reino and La Sombra de la Ley; while our animated film Klaus was a triumph, winning a BAFTA and a nomination for the 2020 Oscars.

Our consistent ability to achieve these goals arises from a balance between profitability and a commitment to society. At Atresmedia, we believe we are doing our job right only if we meet the expectations of our stakeholders and raise awareness of social causes that demand our full attention and action. We have the power to communicate, appeal to and influence people. So, we are under a responsibility to use our power to communicate not just to inform or entertain but also to build a better world. Atresmedia plays its role as a responsible media firm internally and externally by implementing a Corporate Responsibility Master Plan, as described later in this publication.

Looking inward, as a media company, our efforts focus on quality, diversity and accessibility in our content, while upholding ethics, truthfulness and independence in our news reporting. One of the key tools we use to achieve these goals is to attract talent and train our employees continuously in all the skills needed to undertake new projects and successfully face emerging technological change.

Looking outward, we ensure that the most pressing social causes receive the attention and space they deserve in order to stimulate debate and raise the awareness needed to bring about real change that improves our society. For more than a decade our vehicles for this work have been Compromiso Atresmedia and Fundación Atresmedia. We are proud to have witnessed their achievements in key areas for the Group, such as road safety, the fight against gender violence, medical research, heritage protection, health, the environment and education. This year, we launched our new initiative Levanta la cabeza (‘raise your head’) which raises awareness of the need to use technology responsibly.

I am eager to join all of you in facing the challenges of the industry in 2020, during which we shall celebrate the 30th anniversary of Antena 3 and Onda Cero: three decades of news and entertainment; three decades of reflection and emotion.