Page 180 - eco_eng

22.4.2. Operating activities

Most of the operating activities of the Group consist of advertising revenues.

Group management has developed a policy whereby credit limit by customer type and authorisation levels in order to approve transactions are established.

The fnancial assets considered as part of the operating activities are trade receivables for sales and services.

From a business standpoint, the Group considers the advertisers to be the end customer; none of these represents signifcant business revenue in terms of the Group’s total turnover, It is standard sector practice to use media agencies as intermediaries between advertisers and the television channel ofering the advertising space, The risk of concentration of balances with these intermediaries is broken down below:

Thousands of Euros

2010 2009

Total amount No. of customers Total amount No. of customers

From 0 to 100 10,660 946 9,657 850 From 100 to 200 8,867 62 7,359 53 From 200 to 500 12,667 41 10,110 34 From 500 to 1,000 13,448 19 15,053 21 Over 1,500 235,651 34 145,004 22

Total 281,293 1,102 187,183 980

Provisions (18,272) (15,960)

Net 263,021 1,102 171,223 980

These balances all mature within less than 12 months.

The movement in provisions was EUR 2,312 thousand.

The Group constantly monitors the age of its debt, and there were no risk situations at year-end.

22.4.3. Investing activities

The fnancial assets considered as investment activity are non-current loans (Note 10), non-current fnancial investments (Note 11) and current fnancial investments (Note 13). Those notes provide information on the concentration of this risk and the related maturities.

A Financial Risk Management Procedures Manual sets forth the general criteria governing investments of the Group’s Treasury surpluses, which, in broad terms, are as follows:

The investments are made with institutions (whether domestic or foreign) of recognized fnancial solvency.

The investments are placed in conservative products (bank deposits, debt repos, etc,) on which, in general, the repayment of the invested capital is guaranteed.

Authorizations for the corresponding investments are limited by the powers granted to the group’s senior executives and, in any event, are highly restricted (according to the amount, the Board Members, General Management and Operations Director, Financial Director).

180

Gestevisión Telecinco, S.A. AND SUBSIDIARIES