Page 16 - MEDIASET ESPAÑA / 2012. Financial Statements, Management and Corporate Governance Report

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MEDIASET ESPAÑA COMUNICACIÓN, S.A.
NOTESTOTHE FINANCIAL STATEMENTS FORTHEYEAR
ENDED 31 DECEMBER 2012
(THOUSANDS OF EUROS)
1. ACTIVITY
MEDIASET ESPAÑA COMUNICACIÓN, S.A. (called Gestevisión Telecinco, S.A. until April 12, 2011), (hereinafter
“the Company”) was incorporated in Madrid on March 10, 1989. Its registered address is Carretera de Fuencarral a
Alcobendas 4, 28049 Madrid.
The Company engages in the indirect management of a public television service. The Company operated seven TV
channels (Telecinco, Siete, Factoría de Ficción, Boing, Cuatro, Divinity, and Energy), having commenced test broadcasting
in 2012 of a new channel: “9.”The licenses to operate these channels were granted as follows:
• Under the terms of the State concession granted by the General Secretariat of Communications’ Resolution of
August 28, 1989 and the concession agreement contained in the public deed of October 3, 1989, as well as all natural
operations related to and as a consequence of that management.
• This agreement was renewed for ten years from April 3, 2000 under a Council of Ministers’ agreement dated March
10, 2000.
• A Council of Ministers’ resolution of November 25, 2005 extended this concession agreement as well as those of
other national concessionaires to include three DTT (digital terrestrial television) channels.
• A Council of Ministers’ agreement of March 25, 2010 renewed this concession for an additional ten years. The
Company made all the investments required to start digital transmissions pursuant to Royal Decree 2169/1998,
of October 9, which approved the Spanish National Technical Plan for Digital Terrestrial TV. Without prejudice to
the above and in conformity with Transitional Provision Two of the Audiovisual Law, on May 3, 2010 the Company
requested that the concession be changed to a license to offer an audiovisual communication service. Under the
Council of Ministers’ resolution of June 11, 2010 the concession became a 15-year license to offer an audiovisual
communication service.This license is automatically renewable for the same period provided the Company meets the
requirements of Article 28 of the Audiovisual Law 7/2010, of March 31.
• Since the analogical blackout on April 3, 2010 (when analogical broadcasts ended), and by virtue of Additional
ProvisionThree of Royal Decree 944/2005 on May 4, 2010, the Company has access to a multiple digital license with
national coverage, which increases the channels it manages to four.
• Following the acquisition of Sogecuatro, S.A. in 2010, the Company obtained Cuatro’s multiplex licenses (Cuatro and
three more channels).
Per Article 4 of its bylaws, the Company was incorporated for an indefinite period.
The Company became exchange-listed on June 24, 2004, when it was listed on the stock exchanges of Madrid,
Barcelona, Bilbao, and Valencia and became an IBEX-35 company on January 3, 2005.