2007 ANNUAL REPORT GRUPO ANTENA 3 Dirección de Comunicación y Marketing Corporativo Av. Isla Graciosa nº 13 San Sebastián de los Reyes 28703 Madrid comunicació[email protected] [email protected] [email protected] T (+ 34) 91 623 47 52 F (+ 34) 91 654 92 04 ÍNDICE 2007 ANNUAL REPORT 5 LETTER FROM THE PRESIDENT 6 LETTER FROM THE CEO 8 MILESTONES 2007 11 FINACIAL RESULTS 12 AUDIENCES 13 GRUPO ANTENA 3 19 A SHAREHOLDER STRUCTURE WITH A STRONG FOCUS ON COMMUNICATION 20 A FORMIDABLE MULTIMEDIA GROUP 26 ANTENA 3 TV EN BOLSA 29 ANTENA 3, TELEVISION 33 INFORMATION AND ENTERTAINMENT, BASED ON QUALITY AND INNOVATION 34 THE STABILITY OF ANTENA 3 TV IN THE MOST COMPETITIVE YEAR EVER 37 ANTENA 3 TV FICTION, NEW PHASE, NEW HITS 39 RADIO AND LOCAL TELEVISION 43 Profitability IN RADIO; ONDA CERO AND Europa FM 44 NEW BUSINESS 49 SEEKING NEW WAYS OF COMMUNICATING 50 EVENTS 55 EFFECTIVE COMMUNICATION IN GREAT EVENTS 56 ADVERTISING 59 GLOBAL ADVERTISING 60 CORPORATE RESPONSIBILITY 67 Corporate RESPONSIBILITY IN GRUPO ANTENA 3 68 2007 FINANCIAL REPORT 71 2007 ANNUAL REPORT 2007 ANNUAL REPORT LETTER FROM THE PRESIDENT 2007 was the second best year of all time for GRUPO ANTENA 3, and while Last April 25th 2007, the AGM approved, against 2006 accounts, a 1 x 48 it is true that is was a difficult year, it was also very positive. The financial bonus issue to be paid out of retained earnings. In addition, a gross interim performance of the GRUPO ANTENA 3 is a clear reflection of the company’s DPS of €0.40 was already paid in October 2007. The dividend yield is and will stability. continue to be our ultimate objective. Once again, I feel great satisfaction in heading a Board of Directors that is We should not forget the context in which we have been operating, especially aware of the challenges and difficulties involved in managing a media com- in television. Audience fragmentation, the entry into the market of new com- pany in an environment characterized by constant technological, social and petitors, and the inroads made by theme channels have taken market share economic changes. from the large television channels. However, the birth of Digital Terrestrial Tel- evision and new modes of television consumption, led by the internet, should The growth registered by the Spanish stock market in 2007 was less than not be seen as threats, but rather as new business opportunities. in the previous year. The IBEX 35 increased only 7.3%, and the rest of Eu- rope and the US registered similar performances. The media sector suffered a In fact, this strategic vision has led us to multiply our investment in DTT and to strong correction this year. Nevertheless, with respect to its share price when it explore the enormous potential of the internet, both of which represent the went public, at year end ANTENA 3 TV was still up by 66.5%. future of television. In fact, in 2007 one of our channels, ANTENA.NEOX, was the most watched in the Spanish DTT market. This is only the beginning of a ANTENA 3 TV, with a dividend yield of 8%, is one of the most attractive com- new era to which we are making a serious commitment. We do not fear the panies for investors in the Spanish market. This figure would not have been future because we are already a part of it. possible without the confluence of two important factors: shareholders’ sup- port of the company’s management team and the determination of the Board At GRUPO ANTENA 3 we also want to play an active part in the education of Directors to reciprocate this vote of confidence with a high dividend yield. and training of citizens because we are conscious of the role a media com- LETTER FROM THE PRESIDENT 7 pany can and should play in this respect. FUNDACIÓN ANTENA 3 implements our Social Responsibility projects through a series of initiatives aimed mainly at children and young people. In 2007 the FOUNDATION made an active contribution towards improv- ing our society and directing assistance towards the groups that need it most. We hold an enviable position in television and radio thanks to an editorial model that understands how to connect with our public, even as we develop more efficient management with the help of ATRES ADVERTISING, which understands how to take advantage of the multiplier effect that is unique to our Group. But the most important asset of all is our enthusiasm, which comes from doing something we believe in. These are the cards we hold as we start off 2008, a year in which we plan to keep on winning. JOSÉ MANUEL LARA LETTER FROM THE CEO There is nothing better to prove the mettle of an organization than a year full With net revenues of €1,015.9 mn and net profits of €200.0 mn, GRUPO of challenges, like 2007. This was a year a year in which the Spanish market ANTENA 3 is one of the most profitable communication companies in Europe confirmed its status as what many international experts and analysts consider today. To this should be added the company’s ability to generate value for the the most competitive market in Europe. shareholder: in 2007, the dividend yield stood at about 8%. In these twelve months, which could end up becoming a case study in business For ANTENA 3 TV, 2007 was about innovation, because we believe that the schools, the three main channels registered an audience share that was four creation of new content is the right path to take. This year we were the televi- points lower than the previous year, due to a series of factors whose simul- sion channel that had the highest number of premieres, especially in fiction, taneous appearance multiplied the magnitude of their effects. On one hand, the king of television genres. the new analogue competitors authorized in 2006 carved out their niches and started to consolidate their market positions. It should not be overlooked that In addition to the creative efforts made towards increasing our portfolio, we even the smallest of these new competitors had fairly strong programming, also hit another milestone in 2007: our news programmes maintained their including the Football League and Eurobasket. In addition, there was another ranking as the most watched and valued by audiences. This is three years of new development that should be mentioned: the appearance of an attractive uninterrupted leadership. selection of 20 Digital Terrestrial Television channels, which in only 12 months doubled their penetration. GRUPO ANTENA 3 continues to look to the future, with the confidence of a com- pany that is intent on staying cutting edge. New technologies like the internet, For all of these reasons, the Company’s economic results, which were the and of course new television formats, whether via mobile telephony or DTT, are second best ever, are conclusive proof of the maturity GRUPO ANTENA 3 has the areas where the company is investing the most effort, resources and talent. attained in recent years, and are even more impressive in light of the fact that they were obtained in a market context characterized by an extraordinary in- ANTENA.NEOX and ANTENA.NOva are the digital channels that boast the crease in competition. The figures presented in this report are the fruit of the biggest audiences in the country. And this not a passing fad. Digital Terres- efforts of a great professional team. But they are also the consequence of a trial Television represents the future of the audiovisual market, a future that is certain vector and an astute business model that have strengthened our posi- defined by the ascendancy of new technologies, which will contribute more tion in a very complex and exciting market. venues and new opportunities which complement our multimedia business. LETTER FROM THE CEO 9 In addition to television, Radio has also set a new record. UNIPREX, a subsidi- ary of GRUPO ANTENA 3, which owns ONDA CERO and EUROPA FM, closed 2007 with its best figures ever, thanks to the increase in its broadcasters’ au- diences and efficient commercial management. ONDA Cero’S performance was spectacular in 2007, registering growth of +7% with respect to 2006. EUROPA FM, also had a robust performance, revolutionizing the music radio format. The excellent results obtained by the Group wouldn’t have been possible with- out the hard work of ATRES ADVERTISING. For yet another year they were able to put each of our companies at the forefront in terms of commercial efficiency. Lastly, we should also mention UNIPUBLIC, the event management company which, three years after its integration into GRUPO ANTENA 3, has established itself as a leader in the promotional events sector thanks to its broad range of projects. In closing, I would like to especially thank our shareholders for their confi- dence in us. It is this confidence that gives us the motivation to continue on our quest for outstanding performance in management, creativity and innova- tion. We look forward to achieving business excellence once again in 2008, and to demonstrate that the value and spirit of an organization grow when it knows how to meet difficult challenges with professionalism, imagination and optimism. MAURIZIO CARLOTTI MILESTONES 2007 MILESTONES 2007 12 GRUPO ANTENA 3 | INFORME ANUAL 2007 FINANCIAL RESULTS GRUPO ANTENA 3 In 2007 had the best year regarding Net Revenues, despite the difficult competitive environment. Net Revenues reached 1,015.9 million Euros. The Group reported an operating profit of 334.0 million Euros, while the EBITDA margin stood at 32.9%.