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FINANCIAL STATEMENTS, MANAGEMENT AND CORPORATE GOVERNANCE REPORT.
2011
Given the high operational gearing inherent in the TV business, the decrease relates mainly to the downturn in the
adver tising market in the year despite major effor ts to rein in costs, as explained above.
• Finally, net profit in 2011 amounted to EUR 137,264 thousand, compared to EUR 113,934 thousand in 2010.
DIVIDENDS
In 2011, the Company paid a total of EUR 140,160 thousand of dividends, EUR 97,912 thousand in ordinary dividends
out of 2010 profit and EUR 42,248 thousand of extraordinary dividends, representing a total of EUR 0.35 per outstanding
share, paid on 4 May.
INVESTMENT IN RIGHTS AND FILM PRODUCTION
The Mediaset España Group maintained its policy of investing in audiovisual broadcasting rights, carefully selecting the
type of rights and content in order to maintain audience figures in the future and provide the most fer tile ground for the
adver tising business.The Group placed special emphasis once again on investment in Spanish Series.
Wor th highlighting were the activities under taken by Telecinco Cinema, S.A. (formerly Estudios Picasso S.A.), a wholly
owned subsidiary of the Company charged with film production under the legal requirement of TV concessionaires to
earmark 3% of operating revenue for Spanish and European film production.
As investment in film production arises from a legal obligation and not a decision made freely by the network, the
Company has opted for quality and ambitious projects based on global strategic criteria guiding its activity in this field.
Where possible, it opts for productions of a cer tain size and scope that are apt for international showing bearing in mind
market conditions and the Company’s financing capacity as this obligation outweighs the revenues generated, regardless
of the trend and without any consideration to costs incurred or margins commanded.
In shor t, the aim is to combine financial wherewithal, talent, profitability and oppor tunities efficiently for our brightest
and most promising professionals in order to maximise the return on investment -in light of global conditions, maximum
impor tance is attached to this- considering that the activity is not voluntary, and to produce films that bring together
quality and commercial appeal under the network’s logo.
Highlights of 2011 include the success among critics and viewers alike of the film “No habrá paz para los malvados”. It
was the 5th most watched film of the year. It received 14 nominations for the Goya awards (more than any film), winning
six.This was an excellent result, underscoring the quality of this production. “Verbo”, which also premiered in 2011, won
three nominations, including “Best direction” and “Best new actress”.
Finally, the film “Amigos” was a hit at the box office. It was one of the summer’s top comedies and won the Viewers’
choice award (Premio de Público) at the Málaga Spanish film festival.
INTERNET
The Group considers Internet a strategically impor tant current and future activity.
Telecinco.es wants to become a web with its own personality and identity, with content close to users and coordinated
with the Group’s most recognisable formats.
Telecinco is one of the most viewed websites in the media industry.
Also notewor thy are the production of exclusive Internet content and the launch of the new “Mi Tele” webpage.