MEDIASET Responsibility Report
Total Page:16
File Type:pdf, Size:1020Kb
2014 INDEXÍNDICE INTRODUCTION Letter from the Chairman 6 Letter from the Chief Executive Officer 8 GOVERNANCE MODEL Group Organizational Structure 11 Corporate Governance System 21 Risk Management System 29 Data Protection 36 Supply Chain Management 38 Content Management Content Management Model 41 Content Accessibility 45 Advertising Management 47 Team Management 49 Stakeholder relations 53 Involvement in Public Policy Development 55 Involvement in Corporate Responsibility initiatives 57 BUSINESS MODEL Industry outlook 60 Strategy and Business Model 61 Key Success Elements 66 Performance Key Performance Indicators 68 Audiovisual Business 69 Advertising Business 114 Workforce 119 Shareholder Value 135 Environmental Performance 144 Financial-economic value and tax situation 149 Other Performance Indicators 152 ABOUT THIS REPORT Scope 155 International Standards 155 Preparation of the Report 156 External verification 157 GRI Content Index 160 Glossary 172 Directory 175 INTRODUCTION INTRODUCTION LETTER FROM THE CHAIRMAN The main indicators performed as forecast and 2014 on the previous year), the company ended the year at a ended with the first signs of economic recovery, although value of €1,450 million, entailing a rise of 24.5% on 2013 still within the negative cycle in terms of macroeconomic and an increase of €1,636 million in the capitalisation gap highlights. In this context, remaining faithful to our over our immediate competitor. commitment to shareholders, advertisers, suppliers and audiences, Mediaset España again closed a virtuous circle As regards the television viewers variable, which guides in which the level of rigour in business management once advertisers in their investment decisions, Mediaset España more placed us at the head of European audiovisual was the leading audiovisual group with its highest-ever industry companies; leadership was maintained in media share at 30.7%. Telecinco was the most watched channel channel results on television, in cinemas, in the Internet and for the third consecutive year, hitting its highest share in social media, plus a maximum share of the advertising in the past four years; Cuatro also ended the year at market and the number one position in terms of stock its highest figure for the same period; and the theme market capitalisation among listed media companies. channels continued to grow, Factoría de Ficción being the most viewed niche channel in 2014 and the others Our financial performance confirmed that we are Spain’s (Divinity, Energy and Boing) having led the field in top media business, adjusted EBITDA having totalled their respective target audiences. With respect to our €163.9 million, 87.9% up on 2013, a net income margin presence in the Internet and social media, we could say of 17.6%, total net revenue of €932.1, which is 12.7% that we are in the best possible position to reach multi- higher than the 2013 figure, and advertising market screen consumers, since the interactive and cross-channel leadership at 44.2% of advertising investment made in the nature of our television content place us in an unbeatable company’s media. position, as the audiovisual group with the highest Internet traffic at a monthly average of 10 million unique users and As a listed company, exactly 10 years have gone by 54.1 million social media comments in 2014. since we were admitted to the stock exchange in the best media industry IPO in our country’s history. And The obligation to invest 5% of our revenue in film the positive headlines continue, since we are still at the production bore its best fruit in 2014, once again fulfilling head of stock market capitalisation in comparison with the popular maxim to “make virtue of necessity”, which Spanish media companies and among the leaders in in an extraordinary manner led us to achieve record Europe, behind the giants ITV, ProSieben and Mediaset results. We played a role in creating Spain’s greatest Italy, having risen one spot with respect to 2013. With movie phenomenon of all time, the biggest box office hit 24.5% growth and 542.3 million shares traded (36.4% up in the history of Spanish cinema, “Ocho apellidos vascos”; 6 CORPORATE RESPONSIBILITY REPORT 2014 Alejandro Echevarría Chairman together with other movies that stood out in 2014, our a daily basis in each project and in each process, feeling productions accounted for 60% of Spanish cinema’s total pride in providing our consumers with the most attractive box office takings at €127 million, 12 million moviegoers audiovisual content offering, our advertisers with the having enjoyed the films produced by our subsidiary most effective communication platform for their Telecinco Cinema. messages, and our shareholders with an interest in a company that increases in value and endorses their In addition to reaffirming our transparency objectives in trust in us year after year. I view of this, I can only add a Corporate Governance, the company’s commitment to collective “THANK YOU”. corporate social responsibility was once again clear in our constant task of making social awareness messages accessible. Through “12 meses”, the initiative that best reflects our mission to act as a loudspeaker by way of our media windows, in 2014 we drew attention to organ donation, specifically bone marrow, gender equality, food conditions for minors at risk of social exclusion and the fight against child labour. In short, the virtuous circle formed by our results mentioned at the start of this letter mirrors another equally well-built circle that is drawn by all the employees who make Mediaset España possible: it combines reason in management with passion and the will to succeed on 7 INTRODUCTION LETTER FROM CHIEF EXECUTIVE OFFICER Paolo Vasile Chief Executive Officer Following a year that brought the worst results in Mediaset España also tripled its revenue growth memory, the recovery commenced in 2014, although percentage (12.7%) in relation to costs, which rose by major uncertainties remained, especially in the political only 4.1%, a low figure considering that the company arena, where there were attacks, particularly from broadcast major sports events in 2014, the football and institutions, as well as agitation and hostility towards the basketball world cups. media, above all the freest media without ties to any political party, old or new. Nonetheless, Mediaset España The company’s balance sheet also remained debt-free, again demonstrated its capacity to bewitch viewers, ending the year with a net financial position of €265.7 inform citizens and reward shareholders. million. Free cash flow generation totalled €144.7 million. Indeed, Mediaset España had one its most brilliant years Finally, net profit amounted to €59.5 million. This excellent in 2014, driving the audiovisual industry’s growth thanks result would have been even better, reaching €112.1 to magnificent viewing figures and advertising revenue, million, were it not for the accounting impact of the DTS combined with tight cost control, allowing us to post divestment and the tax credit adjustment. outstanding operating margins. All these data make Mediaset España the most profitable In 2014 Mediaset España was once more the leading Spanish audiovisual company and one of the leading audiovisual company, achieving its highest-ever total European media companies, thanks once again to the day audience at 30.7% and a 32.9% commercial target strength of our business model and to our excellent share. During prime time, Mediaset España obtained the human team. highest share since 2008 at 29.6% and was the most watched group (31.2% share) during daytime TV. Mediaset España was also the audiovisual group with the most Internet traffic, achieving a monthly average of 10 million unique users, close to 117 million videos served according to Comscore. Mediaset España was also the leader in social media attention, accumulating over 54.1 million comments, 56% of the total social media impact on television. From an economic perspective, the company ended 2014 with adjusted EBITDA growth of 87.9%, amounting to €163.9 million and a net income margin of 17.6%. EBIT increased by 106.3%, well above twice the 2013 figure (€70.2 million) to reach €144.8 million, entailing a 15.5% net income margin. 8 CORPORATE RESPONSIBILITY REPORT 2014 9 GOVERNANCE MODEL CORPORATE RESPONSIBILITY REPORT 2014 GROUP ORGANIZATIONAL STRUCTURE The media group Mediaset España consists of companies Fully-consolidated engaged in businesses related to the audiovisual sector, Country 2013 2014 the core activities being television content production companies and broadcasting, and the exploitation of advertising Publiespaña, S.A.U. Spain 100% 100% space on its TV channels. Publimedia Gestión, S.A.U. (1) Spain 100% 100% Mediaset España Comunicación, S.A. (“Mediaset España” Grupo Editorial Tele 5, S.A.U. Spain 100% 100% or “the Company”), incorporated in Madrid on 10 March Telecinco Cinema, S.A.U. Spain 100% 100% 1989, heads the corporate group named Grupo Mediaset Mediacinco Cartera, S.L. Spain 75% 75% España Comunicación, S.A. (“the Mediaset Group” or “the Group”). Conecta 5 Telecinco, S.A.U. Spain 100% 100% Premiere Megaplex, S.A.U. Spain 100% 100% Integración Transmedia, Mediaset España, the parent company Spain 100% 100% S.A.U. (1) Mediaset España’s corporate purpose is the indirect Sogecable Media, S.L.U. Spain 100% 100% management of public television services; at 31 December 2014 it commercially operates the TV channels Telecinco, Sogecable Editorial, S.A.U. Spain 100% 100% Cuatro, Factoría de Ficción, Boing, Divinity and Energy, having obtained the licences necessary to provide audiovisual communication services. Equity-consolidated Country 2013 2014 The company has its registered office at Carretera companies de Fuencarral a Alcobendas 4, 28049, Madrid; it was Pegaso Televisión, Inc USA 44% 44% admitted to the stock exchange on 24 June 2004 and is currently listed on the Madrid, Barcelona, Bilbao and Bigbang Media, S.L.