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MEDIASET ESPAÑA COMUNICACIÓN, S.A. AND SUBSIDIARIES
MANAGEMENT REPORT FOR THEYEAR ENDED DECEMBER 31, 2013
(Expressed in thousand of euros)
euros par value each, taking the total to 203,430,713 euros. All the shares are of the same class and represented by
book entries.
The Company’s shares are listed on the Madrid, Barcelona, Bilbao, and Valencia stock exchanges. The ISIN code is
ES0152503035.
Mediaset España Comunicación, S.A. is a member of the IBEX 35 since January 3, 2005.
BUSINESS OUTLOOK
Our business is mainly dependent on advertising, which in turn is closely and directly linked to private consumption
trends, as well as employment. Considering this, the Group’s activity in 2014 cannot be considered outside the prevailing
macro-economic context in which it carries out its business; as discussed in the Management Report, economic data for
the last two quarters of 2013 indicate the end of the recession and the beginning of recovery which, based on estimates
and projections, may very well lead to moderate growth.
As regards free-to-air television wee believe that the consolidation process of the last year in which the Group was
pioneer is going to posively mark its evolution forging a strong presence based on a more rational use and transparency,
making it more easily adaptable to the changing economic cycle; this includes strategies aimed at the recovery of
advertising rates which went into free fall from 2007 to 2012.
Available data onTV consumption and its share of the total advertising income pie indicate that the sector has undergone
a crisis brought on by the economic recession; however, structural factors remain solid.
Within this context of the concentration and consolidation of operators, the Company’s business strategy will be
focused on how to maintain its strong lead, in both terms of audience as well as advertising market, while being fully-
adapted to the environment which affects cash generation as well as its cost structure, in order to protect its financial
margins as well as foster growth if indeed income improves as indicated over recent months.
As far as its programming lineup is concerned, the Company will continue to support genres which have traditionally been
popular, thereby making it the indisputable leader of the market; it will also continue with its strategy of diversification,
focusing on the different audience to which the family of channels is tailored. Also, it will endeavor to better position
each channel in advertising terms, while remaining cognizant of sporting events which, in an increasingly-fragmented
market, are very popular and attract large audiences. All this will take place with close supervision of acquisition costs
and attention to advertising opportunities, which are key to obtaining economic benefits, as well as a relevant goal within
our programming strategy and commercial operations.
A final first-line goal is to maintain a solid financial and equity position (while remaining virtually debt-free and with
positive cash-flow), thereby making it possible to objectively and independently consider operational and business
opportunities as they arise within the context of the current ever-changing environment, while bolstering the Company’s
competitive edge in the face of the high financial leverage which affects the majority of the companies competing in
its sector.
RESTRICTIONS ONVOTING RIGHTS
There are no legal or bylaw stipulated restrictions on exercising voting rights. Each share carries one vote.
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