Page 47 - MEDIASET ESPAÑA / 2012. Financial Statements, Management and Corporate Governance Report

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FINANCIAL STATEMENTS, MANAGEMENT AND CORPORATE GOVERNANCE REPORT. 2012
Participating loan to Sogecable Media, S.L.U.
During 2012, the Company had a participating loan agreement with Sogecable Media, S.L.U. amounting to 1,600 thousand
euros (during 2011, it agreed to a partial conversion of this line of credit to a participating loan). 82 thousand euros of
the provision was reversed (a provision of 1,463 thousand euros was recognized in 2011, decreasing the amount of the
participating loan).
Participating loan to Conecta 5 Telecinco, S.A.U.
In 2012, the Company had a participating loan agreement with Conecta 5Telecinco, S.A.U. amounting to 6,000 thousand
euros (in 2011, it agreed to a partial conversion of this line of credit to a participating loan). 2,985 thousand euros of
the provision was reversed (a provision of 3,374 thousand euros was recognized in 2011, decreasing the amount of the
participating loan).
7.2.3. Loans to associated companies
Long-term loan to Pegaso Televisión, Inc.
In 2012, 3,344 thousand euros of the long-term loan to Pegaso Television were transferred from short-term to long-
term.
In 2011, 3,410 thousand euros were transferred from short-term to long-term.
7.3. Impairment testing
DTS Distribuidora de TV Digital, S.A.
At December 31, 2012, the performance of Digital+’s business during the year did not give any indications that the
investment was impaired.Therefore, it was not tested for impairment this year.
Telecinco Cinema, S.A.U.
This subsidiary is engaged in cinematographic co-productions in compliance with the legal precepts that apply to
television concessionaires. Therefore, it is not possible to obtain reliably evaluate the amount recoverable either by
calculating the present value of the future cash flows from the investment or by estimating dividends to be received,
which depend on the number of productions made in the future, on the type of production, and on their commercial
success. For this reason, the Company has adjusted the valuation in accordance with the equity of the subsidiary as at
year-and 2012 and 2011. Given that the value of the capital and reserves of Telecinco Cinema, S.A.U. was negative at
December 31, 2011, a provision for the same amount as its negative equity was recognized for the participating loan
granted to the company. In 2012, a portion of this provision was reversed, due to the Company’s business performance
during the year (Note 7.2.2.).
Mediacinco Car tera, S.L.
As indicated above, Mediacinco Cartera, S.L. owns a 33% equity interest in the share capital of EdamAcquisition Holding
I Cooperative U.A., the parent company of Grupo Endemol, and has no other operating activities.
Once the impairment of Mediacinco Cartera, S.L. stemming from its interest in Grupo Endemol was recognized in its
financial statements, the Company’s interest in Mediacinco Cartera, S.L. was adjusted in accordance with its underlying
carrying amount.