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MEDIASET ESPAÑA COMUNICACIÓN, S.A. AND SUBSIDIARIES
MANAGEMENT REPORT FOR THEYEAR ENDED DECEMBER 31, 2013
(Expressed in thousand of euros)
the 5.5% obtained in 2012, which once again demonstrates the Group’s effor ts at protecting and increasing
operational margins through efficient cost control measures aimed at optimizing results based on prevailing
market conditions.
• Lastly, profit for 2013 attributable to the parent amounted to 4,161 thousand euros, compared to 50,143 thousand
euros in 2012.This decrease is the result of an impairment write-down for th.
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 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 Group’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.
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