Page 105 - MEDIASET ESPAÑA / 2013. Financial Statements, Management and Corporate Governance Report

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MEDIASET ESPAÑA COMUNICACIÓN, S.A.
MANAGEMENT REPORT FOR THEYEAR ENDED DECEMBER 31, 2013
(Thousands of euros)
DIVIDENDS
During 2013, no dividends were distributed against results, due to the exceptionally negative conditions of the audiovisual
sector in general, as well as the advertising market during the first part of the year.
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.U., 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 certain 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 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.
After a very successful 2012, this was a year of transition for Telecinco Cinema, focused on developing highly ambitious
projects which will be launched during the upcoming two years.Also, three new films were premiered:“Volver a Nacer”.,
“Afterparty”, and “Séptimo”. They earned more than 4.5 million euros at the box office. Four new films began filming
during the year, with a projected 2014 debut, as well as another ambitious animation project which should be ready for
the public in 2015.
It is also worth noting that in 2013, the economy caused a swath of destruction in the Spanish film sector: box office
takings decreased 17%, and market share went down 14% vs. 19% in 2012. The Group nonetheless carries on with
diligent efforts to produce quality movies aimed at all segments of the public