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MEDIASET ESPAÑA COMUNICACIÓN, S.A. AND SUBSIDIARIES
A comparison of the Company’s results in 2012 with those of 2011 indicate that:
• Total operating income decreased from 1,009,330 thousand euros in 2011 to 886,727 thousand euros in 2012,
mainly as a result of decreased ad income.
• Operating expenses decreased from 844,801 thousand euros to 837,924 thousand euros, which is slight when
viewed in overall terms, mainly the result of a reduction in general expenses, the most noteworthy of which are
directly linked to the Company’s legal commitments.These expenses include those related to sporting events (namely
the 2012 Euro Cup Football Championship), which were compensated by savings from other television programs, as
well as the magnificent audience share obtained during the year, as mentioned previously.
• Profit from operations amounted to 48,803 thousand euros, down from 164,529 thousand euros in 2011, leaving an
operating margin (profit from operations/operating income) of 5.5% in 2012 compared to 16.3% in 2011. Given the
high operational gearing inherent in the TV business, the decrease relates mainly to the downturn in the advertising
market in the year.
• Lastly, profit for 2012 attributable to the parent amounted to 50,143 thousand euros, compared to 110,519 thousand
euros in 2011.
DIVIDENDS
In 2012, the Group paid a total of 55,260 thousand euros of dividends.
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 fertile ground for
the advertising business.The Group placed special emphasis once again on investment in Spanish Series.
Worth highlighting were the activities undertaken by Telecinco Cinema, S.A., a wholly owned subsidiary of Mediaset
España Comunicación, S.A. 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 Group
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 certain size and scope that are apt for international showing bearing in mind market
conditions and the Group’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 short, the aim is to combine financial wherewithal, talent, profitability, and opportunities efficiently for our brightest
and most promising professionals in order to maximize the return on investment -in light of global conditions, maximum
importance 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.
Without a doubt, 2012 was an extraordinary year for our film co-production activity: “The Impossible” broke the 40
million euro mark in Spain, and now ranks as the top-grossing Spanish film in history, and second in absolute terms right
behind “Avatar,” surpassing movies such as “Titanic,”“The Lord of the Rings, or “Pirates of the Caribbean.”
In international terms, the film has been sold all over the world and results until now have been very encouraging.The
film as been present in international festivals, including theToronto International Film Festival and the San Sebastian Film
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