Page 6 - MEDIASET ESPAÑA / 2013. Corporate Responsibility Report

6
INTRODUCTION
“Whoever stops to weep, whoever despairs against the hostile rock
of discouragement, whoever does anything other than fight, will not
be a victor, but a slow loser”.
Miguel Hernández
I have started this letter with a quote from the Spanish poet
Miguel Hernández which exemplifies the attitude we all take
every day at Mediaset España, a team which has completed
another difficult year in economic terms, with results that again
place us in a privileged position among Spain’s media groups.
To understand our excellent position in the market, it is worth
looking back for a moment. Since our first market listing in
2004, the value of the entity which was then Telecinco has
risen from €2,503 million to €3,413 million, over €900 million
which has been added to the capitalisation of the company
now called Mediaset España.This figure exceeds the combined
value of the other three media companies traded on the
continuous market. Over these nine years we have generated a
consolidated net profit of €1,666.8 million and we have created
a sustainable future model which has enabled us, during the
years in which the economic instability has shaken and, sadly,
sunk many companies, to maintain our course without ever
losing sight of our commitment to profitability.
This profitability is linked to the objective we have set in the
television business, namely keeping viewers company through
eight diversified TV channels for all ages which have hoisted
us to a leadership position in audiences, with a record 29%
of audience share in the channels as a whole, digital content
on web sites and social networks which are leaders in their
sector, and films which have again positioned us as one of the
major producers in the Spanish film industry. This audio-visual
range helps us to achieve a perfect connection with advertisers’
messages, who have again chosen us as the best option for their
advertising spending.
Looking at 2013, it could be described as the year in which
television commenced a second childhood, a new stage in
which we have moved from consuming this medium only on a
family basis to sharing it from a variety of platforms with millions
of people at the same time, thanks to the capacity provided by
social networks and the new technologies.
The numbers prove this, but just as important is our spirit of
pride and achievement. Adjusted net profit at the year end
amounted to €49.3 million with a significant improvement in
operating margins (adjusted EBITDA at €87.2 million and EBIT
amounting to €70.2 million), a positive cash position (+€93.5
million) and a debt-free balance sheet. Despite the slump
in the TV advertising market, which has shrunk by 6.2%, our
advertising concessionaire Publiespaña has once again led the
television market with a share of 43.7% and ended the year
with gross advertising income totalling €802.2 million, again
the best figure for any media company in Spain. Concerning
stock market performance, our shareholders’ confidence has
made it possible to achieve some impressive figures.The share
price grew by 64.81%, the highest annual rise in the Company’s
history, with an increase of €1.343 million in capitalisation
compared with the previous year. Our shares achieved the
sixth-best performance on the Ibex35.
LETTER FROMTHE
CHAIRMAN