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Media Audiovisual, S.L. and Mediapro Contenidos, S.L. (Sole-Shareholder Company) an
additional ownership interest equal to 0.248% of the Company's share capital, i.e. a total of
558,957 shares. Also, Gala Desarrollos Comerciales, S.L. received 355,856 shares, equal to
0.158% of the share capital.
In order to fulfil outstanding obligations to Gala Desarrollos Comerciales, S.L. in relation to
the integration agreement entered into with Gestora de Medios Audiovisuales la Sexta, S.A.,
in 2015 558,957 treasury shares were acquired for EUR 7,215 thousand.
As a result of the aforementioned transactions, the number of treasury shares in the
Company's balance sheet is 789,738, equal to 0.350% of the share capital.
Use of financial instruments by the Company and main financial risks
The Company performs transactions with financial instruments mainly to hedge the foreign
currency risk on the purchases of broadcasting rights in the year.
At 31 December 2015, the Company had arranged instruments to hedge its foreign currency
asset and liability positions amounting to USD 244,048 thousand, at a weighted average
exchange rate of USD 1.1821/EUR 1. The net fair value of these hedging instruments gave
rise to a financial asset of EUR 15,882 thousand and a financial liability of EUR 310 thousand
at year-end.
Also, interest rate swaps were arranged in order to fix the financial cost arising from the
floating rates established in the syndicated financing agreement entered into in May 2015.
The fair value of these swaps at 31 December 2015 gave rise to a financial liability of EUR
2.6 thousand.
The Company and the Group as a whole have a risk management and control system in
place which is periodically reviewed and updated based on the changes in the Group's
business activities, the materialisation of risks, legislative developments and the
organisation's own development
This risk management and control system is a tool to aid in management decision-making
and to effectively manage risks by identifying and implementing the controls and actions
plans, if any, that are necessary for all the identified risks, thereby improving the ability to
generate value and minimising any impact that may arise from the materialisation of any
risk.
Risk analysis and control affects all Group businesses and activities and also involves all
organisational units. It is therefore a corporate risk management and control system in which
the entire organisation actively participates and which is managed and overseen by the
Board of Directors, with the functions that are granted in this regard to the Audit Committee
and the coordination and participation of the Regulatory Compliance Committee and, in
particular, the Legal area in risk management and compliance controls, the Finance area in
relation to financial risks and the set of controls that compose the System of Internal Control
over Financial Reporting and, lastly, the Internal Audit and Process Control area in the
coordination and supervision of the overall functioning of the risk management system.
The Group has the tools and the organisation necessary to ensure the effectiveness of the
approved control procedures.
The Company’s main financial risks are as follows:
a) Foreign currency risk. Foreign currency risks relate mainly to the payments to be made in
international markets to acquire broadcasting rights. In order to mitigate this risk, the
Company arranges hedging instruments (mainly foreign currency hedges).
b) Liquidity risk. The Company’s liquidity policy is to arrange credit lines and current financial
assets that are sufficient to support its financial needs, on the basis of expected business
performance.