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LETTER FROMTHE CHAIRMAN AND CHIEF EXECUTIVE OFFICERS
In 2011 a new milestone was achieved in this company’s
history because in the 21 years separating the “young”
Telecinco from the present, we have become the largest
audiovisual conglomerate in Spain and one of the most
impor tant in Europe with the formation of Mediaset
España Comunicación, a group made up of seven channels
created at the right time and just when the market and
management efficiency allowed: LaSiete, Factoría de
Ficción, Boing, Cuatro, Divinity and already in 2012, Energy.
We were not showing psychic powers when some years
ago we asser ted that the industry was not ready for
the large number of channels that would follow in the
wake of the digital switchover. When we assured that
some that would end in bankruptcy, there were people
who thought that our position was deliberate in order
to hold a quasi- monopoly over the industry. Now, a few
years later, we have been proved right and within a more
adverse economic scenario than what was first envisaged,
the consequences have been dramatic: channels cancelled
and re-rented, new mergers in the pipeline and a future in
the public sector which is far from encouraging.
Our position in these circumstances is the best possible
thanks to daily hard work. More than one year ago, we
signed the merger for the acquisition of 100% of Cuatro
and 22% of Digital +; we went to the market for funding
and achieved it in record time and with a surplus offering.
In January 2011 we star ted the integration process which
was conducted smoothly in barely two months and with
no setbacks either internally or with viewers or adver tisers.
Thanks to these changes, we have included Cuatro in our
por tfolio, which is the best positioned channel in terms of
image, with the most alternative, original and appropriate
content for the most interesting audience from a
commercial viewpoint. We have also included an interest
in Digital +, the platform with the best pay content on the
Spanish market.
While under taking the most impor tant expansion of an
audiovisual communications group in Spain – handling the
largest volume of audiovisual content in the sector – in
one of the most complicated years from an economic
and therefore adver tising viewpoint, Mediaset España
has been able to adapt to the circumstances and with an
extraordinary effor t to contain costs, has repor ted the
best results in the industry with a net profit of €110.52
million and a net adjusted profit of €143.45 million,
representing a margin of 14.2% over income (compared
with 13.7% in 2010) the highest of any communications
company in Spain, amounting to €1,009.33 million.
These results would have not been possible without an
unquestionable lead in audience ratings with a 26.4%
audience share as a group following outstanding work
in the highly complicated task of programming. And
nor would it have been possible without the efficient
commercial management of the Publiespaña team, that has
known how to adapt to the new legislation approved in
July and new market conditions, creating new adver tising
suppor t such as the vir tual
product placement,
adver tising
slots of less than six minutes during prime time and special
innovative initiatives with which adver tisers have been able
to tailor communication to target products and viewers.
LETTER FROMTHE
CHAIRMAN