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FINANCIAL STATEMENTS, MANAGEMENT AND CORPORATE GOVERNANCE REPORT.
2011
10. EQUITY METHOD INVESTMENTS
The amounts and changes in 2011 and 2010 in the items composing “Equity method investments” are as follows:
EQUITY METHOD INVESTMENT
Balance at December 31, 2009
132,141
Increases/Decreases
532,094
Equity Method Investments
(176,798)
Dividends Receipts
(1,015)
Other non Comprehensive Income
10,851
Other Movements
(548)
EQUITY METHOD INVESTMENT
Balance at December 31, 2010
496,725
Increases/Decreases
Equity Method Investments
7,460
Dividends Receipts
(20,275)
Other non Comprehensive Income
Other Movements
(823)
Balance at December 31, 2011
483,083
The main changes in 2011 relate to the dividend paid by DTS Distribuidora de Televisión Digital, S.A.This dividend was
paid out of profit generated before the acquisition of that company by Mediaset España Comunicación, S.A.
The amounts shown under “Increase” and “Decrease” for 2010 include:
1.
The acquisition of 22% of DTS, Distribuidora de TV Digital, S.A. for EUR 487,988 thousand.
2.
The capitalisation of a loan granted to PegasoTelevisión Inc. for EUR 4,063 thousand.
3.
The capitalisation of part of a debt acquired from Endemol, for EUR 40,229 thousand (Note 11).
4.
The sale of the investment in Publieci Televisión, S.A. for EUR 186 thousand.
In 2010, as explained in the consolidated financial statements for that year, Mediaset España Comunicación, S.A., based
on the outcome of the impairment test carried out, wrote down the value of the stake in Edam Acquisition Holding,
Coop. to zero. Once the value of the investment was reduced to zero, in accordance with accounting criteria, Mediaset
España Comunicación, S.A. no longer recognised the por tion corresponding to additional losses, as there were no
fur ther entries which, in substance, formed par t of the net investment, nor did the Group have additional investment
commitments.
In 2011, the Edam Group entered into negotiations with its bank creditors for a potential debt restructuring as it was
unable to meet the financial covenants of the syndicated loan granted in 2007 for the acquisition of Endemol.A qualified
majority of credits agreed to grant waivers, extending the terms so the June 2011 covenants would not be missed and
to help the negotiation of the debt restructuring, led by senior debt creditors.