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MEDIASET ESPAÑA COMUNICACIÓN, S.A.
The abrupt corrections in the securities markets are occurring in a context in which the economic performance of the
European Union was more dynamic than in prior years, although growth rates (estimated at 1.6% for the year overall)
have hardly been spectacular: nearly all the lagging countries, such as France and Italy, seemed to have gained traction,
while the United Kingdom is still growing over the Eurozone average.
As mentioned previously, data for Spain available at the date of the preparation of these financial statements indicates
that the GDP grew 3.2% in 2015, which is nearly twice the expected rate for Germany, four times over Italy, over 2.5
times higher than France, and a third higher than the UK.This figure is not at all bad, although the financial crisis hit Spain
with much more force than other European Union members; several more years must pass in order to attain balanced
positions recorded in 2007.
In any case, these figures are heartening and should not be dismissed: consumption will overtake the GDP, and serve
as a catalyst for greater dynamism in the labor market: although it is still lagging due to a disproportionate 20.9%
unemployment rate, 525,000 new jobs were created during the year, shrinking this rate 5 points since its highest point
during the first quarter of 2013.
The performance of the Spanish economy in 2015 was boosted by strong tailwinds which simultaneously assisted this
recovery: the drop in the price of oil (fantastic news for such an oil-dependent country), tax reductions for companies
and individuals, and the continuation of the European Central Bank’s expansive monetary policies.
Apart from the steep unemployment rate, there are another two aspects worth mentioning about Spain’s economy
during the year: its indebtedness vs. other markets (in which public debt surpassed 100% of the GDP at year end), and
the deficit of Public administrations which clearly has surpassed European Union commitments.
In this sunny economic scenario, which also has its shadows, the current political uncertainty due to the fragmented
and highly-complex result of the General Elections held on December 20, which still have not been resolved; a new
government still has not been formed, and indeed, there are few expectations that it will without the need to once again
call for elections. Recent encounters between the PSOE (the political party called upon to attempt to reach agreements
aimed at investiture) and other parties within the parliamentary scope; however, it is impossible to guess whether a
sufficient majority will be attained, or if new elections will be necessary.
Whatever the end result, it is clear that the sooner a new government is formed terminating this current legislative
impasse, the better it will be for Spain, since the climate of volatility and uncertainty, as well as the lack of overall political
instability is exerting a negative effect.
THETELEVISION INDUSTRY IN 2015:THEYEAR INWHICH MANY SECTOR
UNCERTAINTIESWERE DISPELLED
As reflected in the 2014 Management Report, the investment inTV advertising investment grew 10.9% during the year,
unheard of since prior to the crisis.
According to unofficial data at the date of preparation of these consolidated financial statements,TV advertising grew
6.4% in 2015, which is under 2014 and sequentially reflected a more positive performance at the first half of the year.
This is explained by the increasingly demanding comparisons with prior years, and also because TV advertising took
off about six months before the overall Spanish economy did, creating a shift in the comparison bases as the cycle
progressed.
In any event, once more,TV advertising demonstrated its strength in the overall advertising market, increasing its presence
to 40.1%, all despite the growing predominance of online advertising; both platforms are potentially convergent and
non-exclusive as regards advertiser penetration targets.