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Corporate Responsibility 2010

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2010 was a decisive year for the audiovisual industry and in particular, for the Publiespaña group. It was the year in which advertising was defnitively eliminated from Spanish public television and we were able to satisfactorily verify that investment continued in television and Telecinco obtained more than 35% of it.

This decisive change was accompanied by two of the most awaited events by the industry in the last few years: the defnitive digital switchover and the entry into efect of the new General Law on Audio-visual Communication. This new legislation has introduced major changes in relation to advertising, enabling us to reinvent our ofering of special initiatives tailored to our customers and explore new lines of business for Publiespaña such as product placement, which will undoubtedly ofer a good return.

It has been a demanding scenario, strongly marked by audience fragmentation, where Telecinco maintained its position through the constant and gradual growth of its LaSiete and Factoría de Ficción thematic ofering, and the launch of Boing, a new children’s channel. This wealth of inter-complementary channels has been key to our growth of 30.2% in turnover compared with 2009, with a market share of 32.1%.

The most important sporting event in Spain in the last few years contributed to this fgure, namely Spain’s World Cup victory in South Africa, which was broadcast by Telecinco. This was a remarkable achievement which we feel proud of and an economic challenge that Publiespaña successfully leveraged.

At Publimedia Gestión we also improved the fgures for our main lines of business: pay television, Internet and outdoor digital, and at the year end, more than

20 Digital + channels and the Digital + subscriber magazine and the Cuatro webpage.

However, if there is one event which we should specifcally remember this year, this was the formation of the leading audio-visual communications group in Spain and one of the most noteworthy in Europe, following the integration of Cuatro and the acquisition of 22% of Digital+ by Telecinco. This transaction would not have been possible without the legal framework that allowed it However, it would have been impossible without our shareholders’ confdence in this project. The good audience ratings, turnover and management of the last few years ensured that the deal would go ahead.

We therefore take on 2011 from a new perspective: we have more channels, we ofer more and better profles, we have a leading free television ofering, we have more technical resources in the pay and Internet market and in particular, we have the best team. This new perspective calls for greater accountability to the company, to shareholders and to the market. We are aware that success is not a gift but a daily achievement.

Giuseppe Tringali

Chief Executive Ofcer