Page 128 - MEDIASET ESPAÑA / 2013. Financial Statements, Management and Corporate Governance Report

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MEDIASET ESPAÑA COMUNICACIÓN, S.A. AND SUBSIDIARIES
NOTES TOTHE CONSOLIDATED FINANCIAL STATEMENTS AT DECEMBER 31, 2013
(Expressed in thousand of euros)
1. CORPORATE PURPOSE OF THE MEDIASET ESPAÑA
COMUNICACIÓN, S.A. GROUP COMPANIES
MEDIASET ESPAÑA COMUNICACIÓN , S.A. - PARENT
Mediaset España Comunicación, S.A. (“Mediaset España”, the “Company” or the “parent”) domiciled at the Carretera de
Fuencarral to Alcobendas, nº 4, 28049 Madrid, was incorporated in Madrid on March 10, 1989.
The Company is devoted to the indirect management of Servicio Público de Televisión, and at December 31, 2013,
operates eight different TV channels:Telecinco, Siete, Factoria de Ficción, Boing, Cuatro, Divinity, Energy, and Nueve.The
licenses to operate these channels were granted as follows:
• Based on the terms of the concession granted by the government as per the General Communications Secretary’s
resolution of August 28, 1989, and a concession contract ratified by public deed on October 3, 1989, as well as the
transactions resulting from these arrangements.
• This agreement was renewed for ten years from April 3, 2000 by virtue of a Council of Ministers’ resolution 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’ resolution of March 26, 2010 renewed this concession for an additional ten years. The
Company has 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 withTransitional ProvisionTwo of 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). After year-end 2012, the new “Nueve” channel began broadcasting definitively.
• Per Article 4 of its bylaws, the Company was incorporated for an indefinite period.
• The Company was admitted for listing on the Stock Exchange on June 24, 2004, and its shares are traded on the
Madrid, Barcelona, Bilbao, and Valencia Stock Exchanges. The shares were included in the IBEX-35 index on January
3, 2005.
• The Group’s main business activity is selling advertising on the TV channels it operates as a concessionaire, as well as
similar, complementary, and related activities such as: