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Translation of a report originally issued in Spanish. In the event of a discrepancy,
the Spanish-language version prevails.
ATRESMEDIA AND SUBSIDIARIES GROUP (CONSOLIDATED GROUP)
DIRECTORS' REPORT FOR 2015
Business performance and situation of the Group
The backdrop against which the Atresmedia Group carried on its activities in 2015 was
characterised by the consolidation of the economic growth that had begun in 2014. Thus,
according to initial forecasts released by the Spanish National Statistics Institute, the annual
increase in GDP would have been 3.2%, compared to the 1.4% in 2014 and the significant
falls of the previous three years. It should be noted that demand in Spain and, particularly
due to the impact that it has on our businesses, household spending, have performed highly
positively. Without doubt, the improvement in the labour market with growth in total
employment of 3%, made a major contribution. Unemployment rates also performed
positively, falling from 24.4% to 22.1%, although they continue to stand at excessively high
levels.
The advertising market, in line with the rest of the economy, has returned to significant
growth for the second successive year, with estimates pointing to a figure of 6.9%. Within this
market, television advertising increased by 6.4%, radio by 8.1% and Internet by 14.3%,
media in which the Group has significant ownership interests and which constitute our primary
source of income.
As has previously been indicated, due to enforcement of the judgment of the Supreme Court
that rendered null and void a decision of the Spanish Cabinet, Atresmedia was obliged to
cease broadcasting three television channels, which had the largest audiences among all those
that had to close down.
In the first half of 2015 an agreement was entered into with the lessee of one of the channels
allocated to the licence of Gestora de Medios Audiovisuales La Sexta, S.A., absorbed in
October 2014, obtaining use of this channel from the month of July onwards. Accordingly, in
the second half of the year it was possible to include it in our offering under the name of
Mega.
In April the Ministry of Industry called a public tender for six licences to operate six public
television channels, three of which were to be broadcast in standard quality and three in high
definition. Atresmedia submitted two tender bids in each of the categories. Ultimately, it was
the successful bidder for a high-definition channel, broadcasting on which commenced at the
end of 2015 under the name of Atreseries.