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Índice
Index
Índice
Index
I Carta del Presidente
Message from the Chairman
I Carta del Consejero Delegado
Message from the Chief Executive Officer
I Consejo de Administración
Board of Directors
I Comité de Dirección
Management Team
I Vocento, cercano a sus audiencias
Vocento, close to its audiences
I Medios impresos
Print Media
I
I
I
I
Multimedia Regional Regional Multimedia
ABC
Qué!
Suplementos y revistas Supplements and magazines
I Audiovisual
I
I
I
I
I
I
I
I
Punto Radio
Veralia
• Grupo Europroducciones
• Bocaboca Producciones
• Videomedia
• Tripictures
Net TV
Fly Music
Punto TV
Onda6 TV
Urbe TV
Telecinco
4
6
8
9
10
12
14
24
32
34
40
42
44
44
45
46
47
48
48
49
50
52
53
I Internet
54
I Otros negocios
62
Other businesses
I Recursos Humanos
Human Resources
I Vocento y su compromiso social
Vocento and its social commitment
I Directorio
Addresses
68
74
82
3
Carta del Presidente
Quiero, por primera vez como presidente, presentar la memoria de
2007, un año sin duda pródigo en acontecimientos para el grupo.
En este año he aceptado, con optimismo, el honor y la misión de
presidir el proyecto de Vocento ante los nuevos y difíciles retos que
deberemos afrontar en los próximos años.
pluralidad, de la diversidad, de la cohesión y de los derechos
fundamentales mediante la difusión de los valores democráticos y
constitucionales. Vocento quiere que el desarrollo de la labor de
tantos esforzados profesionales constituya una significativa ayuda a
fraguar el entramado de la convivencia nacional.
Iniciamos, por tanto, juntos, una nueva etapa, un proceso de cambio
y de continuidad, una renovación necesaria para consolidarnos
como líderes en el ámbito de los medios de comunicación en
España, como grupo mediático singular cuya malla vertebra los
contenidos informativos que reciben los ciudadanos españoles.
En este año hemos celebrado distintas efemérides en las que hemos
contado con la presencia y el apoyo de la Familia Real, a quien
queremos agradecerles su presencia en distintas actividades del
grupo y manifestarles nuestro agradecimiento y nuestra adhesión
por representar esos principios que hemos enumerado y por los que
merece la pena luchar.
Despedimos con cariño y con nostalgia a las personas que han
guiado Vocento hasta la fecha: Santiago de Ybarra, José María
Bergareche y Juan Ignacio Mijangos. Pero ellos también garantizan la
continuidad pues siguen con nosotros. Y damos la bienvenida a un
nuevo consejero delegado, José Manuel Vargas, joven y viejo en esta
casa, y a competentes equipos gestores que van a llevarnos a nuevas
metas. A unos y a otros, desde este lugar, nuestro agradecimiento y
nuestros mejores deseos.
Nos enfrentamos a un panorama social extremadamente cambiante
y con un dinamismo sobrecogedor que debemos ser capaces de
gestionar bien. La sociedad, los lectores de medios y las distintas
audiencias están adquiriendo nuevos hábitos, que suponen que los
soportes de la información, su tratamiento y la rentabilización de sus
contenidos van a evolucionar a un ritmo vertiginoso. Lo que nos
obligará a atender eficazmente las nuevas demandas. Somos un
grupo de comunicación líder, articulamos una manera de informar y
vertebrar la opinión que nos obliga a dar una respuesta
extremadamente rápida a estas transformaciones para no solamente
adaptarnos a las tendencias, sino ser capaces de seguir jugando ese
papel crucial en nuestro país.
Es este el sentido de los cambios estructurales que se están
emprendiendo para crear a una nueva organización pensada en
mercados, clientes y nuevos soportes, que nos permita una
estructura más eficaz, unos procedimientos más próximos a la
demanda y una cercanía de los contenidos a las áreas y a las
requerimientos de nuestros clientes.
Nuestro compromiso de responsabilidad se extiende a la empresa y
la cultura, ámbitos en los que trabaja intensamente la Fundación
Vocento y la Fundación ABC, con iniciativas que pretenden servir de
punto de encuentro entre los distintos agentes sociales y permitir la
divulgación de bienes sociales superiores. Éste es también el espíritu
que nos inspira y que nos lleva, entre otras cosas, a invertir en
educación a través del Master de Periodismo ABC-Universidad
Complutense de Madrid, que en 2007 ha alumbrado la vigésima
promoción de profesionales formados en nuestras redacciones, así
como el Master de Periodismo El Correo-UPV/EHU, que graduó en el
curso 1989/89 a la primera promoción y es el segundo más antiguo
de España.
Queremos estar muy presentes en el futuro. Por tanto vamos a
seguir siendo un punto de encuentro con los ciudadanos, un
referente en su vida cotidiana contribuyendo a su opinión y a su
información a través de Internet, de medios impresos, de radio o de
televisión. Los ciudadanos que de modo tan masivo apoyan cada día
a este grupo recibiendo información a través de los distintos medios
son nuestra razón de ser. Su satisfacción y su mejor servicio es
nuestro objetivo como empresa comprometida y responsable.
Pido a todos que sigan apoyando a un grupo de profesionales
excepcionales que están proyectando su mejor hacer en este
proyecto y que están dispuestos a construir entre todos un Vocento
para el futuro, aun mayor.
Diego del Alcázar Silvela
Estamos en este año que presentamos los resultados del 2007
despidiendo el ciclo económico alcista más largo que ha conocido la
economía española. Aunque presentamos unos buenos resultados,
el último cuatrimestre ha hecho sentir sobre nuestras cuentas la crisis
económica en la que la economía mundial y la española están
inmersas. Queremos que también las medidas que vamos a tomar
nos permitan con eficacia, ahorrar e invertir más eficazmente.
Vocento, como empresa, no solamente tiene un compromiso con
audiencias y accionistas sino también un compromiso firme con su
entorno social. Por supuesto, la primera responsabilidad está con la
veracidad y con el rigor de todos los contenidos de cualquier medio
del grupo, para seguir siendo referentes de periodismo bien hecho
en cualquiera de los territorios en los que operamos. Pero, Vocento
quiere mantener su compromiso con la labor de concienciación
social y una apuesta decidida por la defensa de la libertad, de la
4
For the first time as Chairman, I would like to introduce the annual
report for 2007, a year which has been exceptionally busy for the
Group. In this year I have accepted, with a sense of optimism, honour
and duty, the privilege of chairing Vocento as we confront the new
and testing challenges that we will have to face in the coming years.
We are together beginning a new stage, and a process of both
change and of continuity, as we look to renew and to consolidate our
Group as a leader in the Spanish media sector and as a media
company whose output provides Spanish citizens with a full range of
information and content.
This year we have said goodbye, with affection and goodwill, to the
people who have led Vocento until now; Santiago de Ybarra, José
Bergareche, Juan Ignacio Mijangos. But they will continue to be at
our side, guaranteeing continuity with the past. And we have also
welcomed a new Chief Executive Officer, José Manuel Vargas, who
brings with him both youth and a long track record at our company,
and new management teams who will ensure that we will be able to
achieve our goals. To all of you, I would like to extend my thanks and
my best wishes.
We are now facing a very rapid pace of social change, and we must be
able to manage this change efficiently and effectively. Society, and
consumers of media, are quickly acquiring new habits, and this means
that the various different media formats, and the management and
monetizing of media content, are now going to evolve very rapidly. We
must be ready to supply these new demands effectively. We are a
major media company in Spanish society, and we must be able to
provide a rapid response to the transformation that we are witnessing,
not only to adapt ourselves to these new tendencies, but also to be
able to continue to play the crucial role that we have in this country.
This year we have celebrated various anniversaries, attended by and
supported by members of the Royal Family, to whom we would like
to express our thanks and our continued commitment to defending
these principles.
Our commitment to responsibility also covers the areas of business and
of culture, where the Vocento Foundation and the ABC Foundation
have major roles, working on various programmes which enable
different areas of society to come together, and which enable higher
human values to be shared. This is also the inspiration which has led us
to invest in education, with the ABC-Universidad Complutense of
Madrid Master’s in Journalism, which in 2007 celebrated its twentieth
year of providing trained professionals for our editorial teams, and the
El Correo-UPV/EHU Master’s in Journalism, whose first intake was in
1988/89 and which is the second oldest course in Spain.
We want to continue to play a major role in the future, to continue
to serve as a meeting space for citizens and to form a part of daily life
in Spain, contributing to national information and opinion by using
the internet, print media, radio and television. It is the massive
support provided every day by these citizens to our various media
which is the reason for our group’s continued existence, and our
ultimate aim as a committed and responsible company is to serve
them well and to satisfy their requirements.
I would like to conclude by asking all of you to continue to support
an exceptional team of professionals, who between them are
dedicating all of their best efforts into building an even better
Vocento for the future.
This is the purpose of the structural changes that we are now
undertaking, which will provide us with a new organisational structure,
focused on markets, clients, and new media, which will enable us to
become more effective, to respond better to new demands, and to be
closer to the content requirements of our clients in all areas.
This year we are witnessing the end of the longest bullish economic
cycle that Spain has enjoyed in its history. Although our results in
2007 were good, in the last four months of the year our accounts felt
the impact of the economic crisis worldwide and in Spain. The
measures that we are taking will enable us to save and invest with
more efficiency, in this new and difficult phase.
Vocento has commitments not only to its audiences and to its
shareholders, but also wider commitments to society. Of course, our
first responsibility is for the accuracy and rigour of all of the
company’s content, whatever the media, so that we can continue to
be a leader in journalism in all the areas where we operate. But
Vocento also wants to maintain its strong commitment to social
issues and to the defense of freedom, plurality, diversity, national
cohesion, and to fundamental human rights, by supporting and
defending democratic, constitutional values. Vocento wants the
efforts of so many hard working professionals to provide a significant
source of support to this framework for national cohesion.
5
Carta del Consejero Delegado
Carta del ConsejeroDelegado
Ponerse al frente de un proyecto como Vocento constituye un
reto profundamente estimulante y una oportunidad inigualable
de desarrollo personal y profesional que en este año he
asumido con ilusión y voluntad de trabajo.
Sin duda, 2008 supondrá el punto de partida del nuevo
Vocento, un Vocento que, manteniendo sus señas de identidad,
las que nos han catapultado al liderazgo de medios en España,
ha de mirar necesariamente al futuro inmediato y dar respuesta
a la cambiante realidad social y mediática de nuestro país. De
ahí que en este año hayamos abordado el comienzo de un
proceso de renovación interna con el fin de tomar impulso para
seguir creciendo y consolidarnos como grupo de comunicación
de referencia.
Afrontamos, pues, el proceso expansivo más ambicioso de la
compañía, que se materializa en el nuevo Plan Estratégico
2008-2010 con el que aspiramos a sentar las bases del futuro
crecimiento de Vocento. Este proyecto exige cambios, que en
este año hemos comenzado a poner en marcha para adaptar
nuestra estructura organizativa a los nuevos requerimientos de
nuestros públicos y anunciantes. Todo ello sin perder de vista
nuestras señas de identidad, esto es, independencia, calidad y
rentabilidad, que son, al tiempo, nuestro valor diferencial ante
la competencia.
A la vista de cómo se ha desarrollado el año 2007, todo indica
que disponemos de una base firme para seguir creciendo. Ha
sido, en general, un año de buenos resultados empresariales:
hemos incrementado la facturación y nos hemos afianzado en
el mercado nacional con Internet, prensa gratuita y radio, lo
que viene a complementar nuestro sólido liderazgo en prensa
regional. En esta dirección pretendemos seguir trabajando a
corto plazo con el ambicioso objetivo de convertirnos en el
grupo multimedia de referencia en España.
Los objetivos económicos no pueden alejarse de nuestra misión
empresarial: somos más que una empresa que vende un
producto; nuestra labor es informar y entretener, y nuestra
vocación es de servicio a la sociedad. Público y accionistas son
Message from the ChiefExecutiveOfficer
To be in charge of a project like Vocento represents an extremely
stimulating challenge as well as an unbeatable opportunity for
personal and professional development that I have taken on this
year with high hopes and a great will to work.
Without a doubt, 2008 will mean the starting point of the
new Vocento, a Vocento that, maintaining its clearly
distinguishing features, those that have propelled us to the
top of the media sector in Spain, must necessarily do so with
the immediate future in mind and respond to the changing
social and media reality of our country. That’s why this year
we have undertaken an internal renewal process to gather
momentum to continue growing and be consolidated as the
leading media group.
Therefore, we face the company’s most ambitious expansion
process, which is reflected in the new 2008-2010 Strategic
Plan, with which we aim to lay the foundations for the future
growth of Vocento. This project requires changes, which we
6
have already initiated this year, to adapt our organizational
structure to the new demands of our audiences and advertisers.
And all this without overlooking our distinguishing features,
i.e., independence, quality and profitability, which are, at the
same time, what differentiate us from the competition.
In view of how the year 2007 has developed, everything
indicates that we have solid foundations on which to continue
growing. It has been, in general, a year of good business
results: we have increased turnover and become strongly
established in the national market in the fields of Internet, free
press and radio, which complements our sound leadership in
the field of regional press. We intend to carry on working in the
same direction in the short term with the ambitious aim of
becoming the leading multimedia group in Spain.
Our economic goals must be in line with our corporate mission:
we are more than just a company selling a product; it is our
task to inform and to entertain, and our commitment, to serve
Carta del Consejero Delegado
nuestra razón de ser, a ellos orientamos nuestro trabajo y
nuestras metas. Sabemos que las alcanzaremos porque
contamos con el mejor grupo de medios de España, un equipo
capaz, comprometido e ilusionado que une sus esfuerzos en un
proyecto único. Los objetivos empresariales forman lógicamente
parte en un grupo de medios, y a éstos hay que sumarles un
fuerte compromiso de todos los que formamos parte de
Vocento en nuestra vocación de servicio de la ciudadanía así
como con la libertad de expresión.
Gracias a cuantos integran el equipo de Vocento y a nuestros
accionistas por su apoyo, dedicación y confianza.
José Manuel Vargas
society. Audience and shareholders are our raison d’être, and
they are the target of our work and our goals. We can be
certain that we will achieve these goals, as we have at our
disposal the best media in Spain, and a very capable,
committed, and passionate team, who are devoting all their
efforts to this project. And in addition to the company's targets
for its business, we at Vocento also have a very strong vocation
to serving citizens across Spain, and to defending the freedom
of expression.
Thanks to all the members of the Vocento team and to our
shareholders for their support, dedication, trust and confidence.
José Manuel Vargas
7
Consejo de Administración
Board of Directors
ConsejodeAdministración
BoardofDirectors
Presidente | Chairman
D. Diego del Alcázar Silvela*
Consejero Delegado | Chief Executive Officer
D. José Manuel Vargas Gómez*
Vicepresidente Primero | Senior Vice President
D. José María Bergareche Busquet
Vicepresidentes | Vice Chairmen
Dña. Catalina Luca de Tena García-Conde
D. Enrique Ybarra e Ybarra
Consejeros | Board Members
D. Claudio Aguirre Pemán
D. Santiago Bergareche Busquet*
Dña. María del Carmen Careaga Salazar
D. Carlos Castellanos Borrego
D. Santiago de Ybarra y Churruca
Dña. Soledad Luca de Tena García-Conde*
D. Víctor Urrutia y Vallejo*
D. Álvaro Ybarra y Zubiría*
Atlanpresse, S.A.R.L. (representada por Dña. Hélene Lemoîne)
Mezouna, S.L. (representada por D. Ignacio Ybarra Aznar)*
Secretario no Consejero y Letrado Asesor |
Non-board member Secretary and Legal Advisor
D. Emilio José de Palacios Caro*
*
8
Pertenecen a la Comisión Delegada
*
They belong to the executive committee
Comité de Dirección
Management Team
ComitédeDirección
ManagementTeam
Consejero Delegado | Chief Executive Officer
José Manuel Vargas Gómez
Directora General Financiera | Chief Financial Officer
Beatriz Puente Ferreras
Director General de Medios Nacionales | General Manager of National Media
Santiago Alonso Paniagua
Director General de Medios Regionales | General Manager of Regional Media
Iñaki Arechabaleta Torróntegui
9
Vocento cercano a sus audiencias
Mediosregionales
RegionalMedia
10
Vocento cercano a sus audiencias
Mediosnacionales
NationalMedia
.com
11
12
13
Medios impresos Multimedia Regional
Print media Regional Multimedia
DURANTE 2007, Y A PESAR DE LA ALTA COMPETITIVIDAD DEL SECTOR, VOCENTO
HA REVALIDADO UNA VEZ MÁS SU DESTACADA POSICIÓN COMO GRUPO LÍDER DE
PRENSA EN LA MAYORÍA DEL TERRITORIO ESPAÑOL.
MultimediaRegional2007
Esta situación refleja que la estrategia multimedia del grupo,
un modelo de negocio que se inició hace años, se ha
convertido en un sólido soporte de cara al futuro del sector
en nuestro país.
DURING 2007, AND IN SPITE OF A GREAT DEAL OF COMPETITION IN THE SECTOR, ONCE
MORE VOCENTO HAS CONFIRMED ITS OUTSTANDING POSITION AS LEADING MEDIA
GROUP THROUGHOUT MOST OF SPANISH TERRITORY.
2007RegionalMultimedia
This situation shows that the group’s multimedia strategy,
a business model that was adopted years ago, has
14
become a solid base regarding the future of the sector in
our country.
La tendencia sectorial apunta hacia un periodismo de
cercanía, fomentando la participación con Internet como
principal instrumento de periodismo participativo. En este
sentido, la convergencia va a ser la pieza clave para conectar
con el público del futuro. Vocento se encuentra en una
inmejorable situación gracias a la apuesta que desde hace
años ha realizado por la convivencia de medios y soportes,
productos y servicios, así como la privilegiada posición de
liderazgo que ostenta en cada uno de sus mercados. Cabe
destacar el caso de La Voz de Cádiz, un periódico con tres
años de vida, cuyo portal de Internet ha consolidado en
2007 el liderazgo que alcanzó el año anterior y es el
referente ineludible en su zona de influencia, por delante
de su más que centenario competidor.
Así, los medios regionales multimedia continúan otorgando
a Vocento el dominio de los mercados locales. Esta
estructura (periódico, portal local, radio, televisión local y
diario gratuito), cuyo núcleo central es el periódico regional,
permite llegar a cada lector, internauta, oyente o espectador
a través de su medio más afín y consigue crear una
The trend of the sector is inclined towards a journalism of
proximity, encouraging participation with the Internet as the
main instrument of participative journalism. In this sense,
convergence will be key to connecting with the public of the
future. Vocento stands in an unbeatable situation thanks to its
commitment made years ago regarding the coexistence of
media and supports, products and services, as well as the
privileged position of leadership that it holds in each one of its
markets. It is necessary to highlight the case of La Voz de
Cádiz, a newspaper that has been being published for three
years now, and whose Internet portal in 2007 has
consolidated the leadership obtained during the previous year,
and which is the unquestionable leader in its area of influence,
ahead of its more than one-hundred-year-old competitor.
Therefore, regional multimedia continues to give Vocento the
leading position in local markets. Thanks to this structure
(newspaper, local portal, radio, local television and free
newspaper), of which the main nucleus is the regional
newspaper, each reader, Internet user, listener or spectator is
reached through their favourite channel, and it is possible to
create a multimedia audience providing our advertisers with
the possibility of obtaining the greatest and most efficient
advertising impact.
Besides bringing contents nearer to the information interests
of its readers, Vocento is committed to quality and
innovation, which is reflected in the constant evolution of
the group’s newspapers, in its ongoing search for
improvement and a closer approach to the idiosyncrasy of
each region. In this sense, it is important to highlight the
15
audiencia multimedia proporcionando a nuestros
anunciantes, la posibilidad de obtener el mayor y más
eficiente impacto publicitario.
Además de acercar los contenidos a los intereses
informativos de sus lectores, Vocento apuesta por la calidad
y la innovación, lo que se plasma en la constante evolución
de los periódicos del grupo y en la búsqueda permanente de
la mejora y de la aproximación a la idiosincrasia de cada
territorio. Así, es importante la firme apuesta de los diarios
de Vocento por la cultura y el deporte de sus regiones.
La calidad también se mide en términos de excelencia
industrial. En este sentido cabe destacar la innovación que
supuso la inauguración en 2007 de una nueva planta de
impresión desde donde se imprime La Verdad. Esto permite
contar con todos los avances que la tecnología pone al
servicio de los periódicos. Avances todos estos de los que
nos beneficiaremos en Valladolid, donde durante 2007 se ha
iniciado el proyecto de una nueva planta de impresión de la
que disfrutaremos en 2008.
Esta estrategia ha dado como resultado la consolidación de
las 12 cabeceras regionales de Vocento como marcas
reconocidas y de prestigio en su zona de influencia, donde
han logrado un fuerte arraigo social. Este liderazgo de
nuestras marcas locales se mantiene y acrecienta gracias a la
fuerte imbricación social de nuestros medios presentes en la
práctica totalidad de eventos deportivos, sociales,
económicos y culturales que se desarrollan un sus respectivas
zonas de cobertura. No en vano, los diarios regionales se han
convertido en un referente social en sus ámbitos geográficos.
Los medios regionales de Vocento aúnan en su filosofía dos
conceptos complementarios, como son tradición y
vanguardia. Por una parte, ofrecen al público la experiencia
16
high level of commitment on the part of Vocento’s
newspapers towards regional culture and sport.
Quality is also measured in terms of industrial excellence
To this effect it is necessary to emphasise the innovation
entailed by the opening, in 2007, of a new printing plant
where La Verdad is printed. This state-of-the-art technology
enables major advances in the newspapers. We shall also be
able to benefit from all these advances in Valladolid, where
during 2007 the project for a new printing plant has been
initiated and we will enjoy it in 2008.
The result of this strategy is the consolidation of Vocento’s
12 regional publications as well-respected and recognised
brands in their area of influence, where they have become
socially well-accepted and established. This leadership of our
local brands remains and is on the increase as a result of the
strong social interlinking of our media present at practically
all sports, social, economic and cultural events that are held
in their respective areas of coverage.
With good reason, the regional newspapers have become a
social benchmark in their geographical environments.
y las garantías del diario testigo de la historia que mantiene
su espíritu y su compromiso; y, al mismo tiempo, son
pioneros en la innovación de soportes y contenidos,
adaptándose a las cambiantes necesidades del público.
Vocento’s regional media bring two complementary concepts
together in their philosophy: tradition and vanguard. On the
one hand, they offer the public the experience and the
guarantees of the daily newspaper that is a witness to
history, which keeps its spirit and commitment; and, at the
same time, they are pioneers in the innovation of supports
and contents, adapting to the public's changing needs.
Como resultado, en 2007, los diarios regionales de Vocento
revalidaron su liderazgo en difusión y audiencia, que fue de
496.294* ejemplares y 2.466.000** lectores, respectivamente.
A su vez, los ingresos alcanzaron los 413,41 millones de euros y
el resultado de explotación, los 104,92 millones de euros.
As a result, in 2007, Vocento’s regional newspapers
confirmed their leadership in readership figures and
audience, with 496,294* copies and 2,466,000** readers,
respectively. Revenues hit 413.41 million euros and the
operating return, 104.92 million euros.
El éxito se mide también en años. Si bien ya contamos con
un importante grupo de periódicos que ya han superado la
mítica barrera de los 100 años, todavía seguimos festejando
aniversarios significativos de alguno de nuestros diarios.
En este sentido, durante 2007 hemos celebrado el 140
aniversario de Las Provincias, y el 75 cumpleaños de Ideal.
Success is also measured in years. Although we already have
an important group of newspapers that have passed the
mythical 100-year-old mark, we continue to celebrate
significant anniversaries of some of our newspapers. For
example, in 2007, we have seen the 140th anniversary of Las
Provincias, and the 75th of Ideal.
*Datos mensuales OJD 2007. Pendiente de certificación anual
**Fuente: EGM PRENSA: 3er Año Móvil 2007
*OJD 2007 Monthly Data. Pending annual certification
**Source: EGM PRENSA: 3rd 2007 Moving year
17
Audiencia 2007Audience*
520.000
lectores
readers
Perfil del lector Reader Profile*
Difusión 2007 Circulation***
ejemplares
118.108 issues
Audiencia Audience*
Álava&Vizcaya
45,6%
De 20 a 44 años
Aged 20 to 44
63,0%
Estudios de BUP, COU
o superiores
Secondary or third-level
education
56,7%
Hombres
Male
Difusión Circulation**
Álava&Vizcaya
55,4%
Residentes en urbes
+50.000 habitantes
Resident in cities with
+50,000 people
77,3%
Clase alta, media alta
y media media
Upper, upper-middle and
middle-middle class
296.000
lectores
readers
ejemplares
84.222 issues
Audiencia Audience*
Guipúzcoa
46,7%
De 20 a 44 años
Aged 20 to 44
60,6%
o superiores
education
51,7%
Hombres
Male
Guipúzcoa
37,2%
Residentes en urbes
+50.000 habitantes
+50,000 people
74,2%
y media media
middle-middle class
18
*Fuente: EGM PRENSA: 3er Año Móvil 2007
**OJD (enero-diciembre 2006)
***Datos mensuales OJD 2007. Pendiente de
certificación anual
*Source: EGM PRENSA: 3rd 2007 Moving year
**OJD (January-December 2006)
***OJD 2007 Monthly Data. Pending annual
certification
190.000
lectores
readers
ejemplares
39.200 issues
Audiencia Audience*
Cantabria
46,9%
De 20 a 44 años
Aged 20 to 44
60,0%
o superiores
education
57,0%
Hombres
Male
Cantabria
48,8%
Residentes en urbes
+50.000 habitantes
+50,000 people
72,9%
y media media
middle-middle class
230.000
lectores
readers
ejemplares
38.712 issues
Audiencia Audience*
Murcia
52,3%
De 20 a 44 años
Aged 20 to 44
58,7%
o superiores
education
67,2%
Hombres
Male
Murcia
64,0%
Residentes en urbes
+50.000 habitantes
+50,000 people
79,8%
y media media
middle-middle class
certification
19
189.000
lectores
readers
ejemplares
32.560 issues
Audiencia Audience*
Almería, Granada&Jaén
53,1%
De 20 a 44 años
Aged 20 to 44
61,1%
o superiores
education
63,5%
Hombres
Male
Almería, Granada&Jaén
56,2%
Residentes en urbes
+50.000 habitantes
+50,000 people
75,5%
y media media
Upper, upper-middle
and middle-middle class
157.000
lectores
readers
ejemplares
22.785 issues
Audiencia Audience*
Cáceres&Badajoz
56,1%
De 20 a 44 años
Aged 20 to 44
59,1%
o superiores
education
65,8%
Hombres
Male
Cáceres&Badajoz
40,9%
Residentes en urbes
+50.000 habitantes
+50,000 people
74,5%
y media media
Upper, upper-middle
20
certification
186.000
lectores
readers
ejemplares
31.784 issues
Audiencia Audience*
Málaga
50,8%
De 20 a 44 años
Aged 20 to 44
60,6%
o superiores
education
64,8%
Hombres
Male
Málaga
61,9%
Residentes en urbes
+50.000 habitantes
+50,000 people
74,6%
y media media
Upper, upper-middle
107.000
lectores
readers
ejemplares
16.740 issues
Audiencia Audience*
La Rioja
49,8%
De 20 a 44 años
Aged 20 to 44
57,3%
o superiores
education
55,3%
Hombres
Male
La Rioja
54,3%
Residentes en urbes
+50.000 habitantes
+50,000 people
71,8%
y media media
Upper, upper-middle
certification
21
227.000
lectores
readers
ejemplares
36.359 issues
Audiencia Audience*
Castilla y León
53,3%
De 20 a 44 años
Aged 20 to 44
62,4%
o superiores
education
60,4%
Hombres
Male
58,2%
Castilla y León
Residentes en urbes
+50.000 habitantes
+50,000 people
68,4%
y media media
Upper, upper-middle
152.000
lectores
readers
ejemplares
25.979 issues
Audiencia Audience*
Asturias
44,0%
De 20 a 44 años
Aged 20 to 44
50,7%
o superiores
education
57,3%
Hombres
Male
Asturias
78,6%
Residentes en urbes
+50.000 habitantes
+50,000 people
74,9%
y media media
Upper, upper-middle
22
certification
32.000
lectores
readers
ejemplares
9.515 issues
Audiencia Audience*
Cádiz
54,1%
De 20 a 44 años
Aged 20 to 44
60,8%
o superiores
education
54,5%
Hombres
Male
Cádiz
88,8%
Residentes en urbes
+50.000 habitantes
+50,000 people
70,0%
y media media
Upper, upper-middle
180.000
lectores
readers
ejemplares
40.330 issues
Audiencia Audience*
Comunidad Valenciana
49,7%
De 20 a 44 años
Aged 20 to 44
55,4%
o superiores
education
64,5%
Hombres
Male
Comunidad Valenciana
51,8%
Residentes en urbes
+50.000 habitantes
+50,000 people
77,0%
y media media
Upper, upper-middle
certification
23
Medios impresos ABC
Print media ABC
ABC
ABC HA REVALIDADO DURANTE 2007 SU POSICIÓN DESTACADA EN EL PANORAMA MEDIÁTICO ESPAÑOL,
AFIRMÁNDOSE COMO UNO DE LOS PERIÓDICOS MÁS IMPORTANTES DEL PAÍS Y PUNTO DE REFERENCIA
SOCIAL POR INFLUENCIA POLÍTICA, INTELECTUAL Y CULTURAL.
DURING 2007 ABC HAS CONFIRMED ITS OUTSTANDING POSITION IN THE
SPANISH MEDIA INDUSTRY, BEING ONE OF THE MOST IMPORTANT
NEWSPAPERS IN THE COUNTRY AND A SOCIAL BENCHMARK DUE TO ITS
POLITICAL, INTELLECTUAL AND CULTURAL INFLUENCE.
24
Medios impresos ABC
Print media ABC
El permanente compromiso de ABC por
ofrecer a sus lectores una información de
calidad, rigurosa, veraz y próxima a sus
intereses e inquietudes ha sido atendido
desde la fidelidad a sus señas de
identidad fundacionales.
La cobertura de la intensa agenda informativa nacional e
internacional a través de una amplia, puntual y completa
oferta periodística, ha encontrado su complemento ideal en
la opinión cualificada, la interpretación y el análisis que
desde sus páginas han ofrecido las más prestigiosas y
reconocidas firmas, así como en la edición de un amplio
número de páginas especiales, suplementos y monográficos,
productos todos ellos que han alcanzado altas cotas de
calidad y notoriedad.
El permanente compromiso de ABC por ofrecer a sus
lectores una información de calidad, rigurosa, veraz y
próxima a sus intereses e inquietudes ha sido atendido
desde la fidelidad a sus señas de identidad fundacionales:
los principios editoriales que desde su origen, hace más de
cien años, han hecho de ABC el gran referente del sector
liberal-conservador de la sociedad española, defensor de los
valores cristianos, de la unidad nacional y de la Monarquía
parlamentaria y constitucional.
Dicho compromiso de ABC, ha permitido durante 2007 la
consolidación de las modificaciones introducidas en su oferta
a finales del ejercicio anterior: una nueva puesta en página
del periódico, la incorporación de contenidos y secciones
adicionales y una nueva ordenación de los bloques
informativos tradicionales. Al mismo tiempo se han abordado
otras transformaciones de similar relevancia: se ha extendido
la distribución de la revista Mujer Hoy Corazón a todo el
ámbito nacional, se han ampliado las ediciones de ABC a la
Comunidad Valenciana y Castilla La Mancha, Aragón cuenta
con un nuevo suplemento ZHT (Zaragoza, Huesca y Teruel) y
se han creado páginas temáticas dedicadas a los colegios
profesionales, al medio ambiente, a la educación, a la
comunicación, a la religión, al teatro, al cine y a la salud.
Durante 2007, ABC ha continuado ofreciendo a sus lectores
una cobertura periodística global a la vez que local.
The performance of the intense national and international
news coverage by means of a wide, detailed and full
journalistic offer, has found its ideal complement in the
qualified opinion, interpretation and analysis given by the
most prestigious and renowned personalities from its pages,
as well as in the publication of a great variety of special
pages, supplements and monographs, products that have all
achieved high levels of quality and fame.
ABC’s ongoing commitment to offer its readers quality news
that is rigorous, truthful and close to the citizens' interests
and concerns, has been carried out staying true to its
distinguishing foundational marks: the editorial principles
that, since the very beginning, more than one hundred
years ago, have made ABC the principal benchmark of the
liberal-conservative sector of Spanish society, defender of
Christian values, national unity and parliamentary and
constitutional Monarchy.
This commitment on the part of ABC has enabled, in 2007,
to consolidate the changes incorporated in its offer at the
end of the previous year: a new layout of the newspaper,
25
Medios impresos ABC
Print media ABC
Las delegaciones regionales de ABC en la Comunidad
Valenciana, Castilla La Mancha, Castilla y León, Galicia,
Aragón, Cataluña, Canarias y Andalucía (Sevilla y Córdoba),
han acrecentado su gran protagonismo en la cobertura de
los principales acontecimientos informativos de sus
respectivos ámbitos geográficos, a la vez que se afianzan
como un ineludible referente social. En cuanto a la oferta
editorial complementaria de ABC a sus lectores, durante
2007 se han abordado distintas y numerosas iniciativas para
poner al alcance de estos un conjunto de productos
singulares y exclusivos que inciden en la oferta cultural
(colecciones y productos editoriales de consulta, divulgación,
etc.), el entretenimiento, las últimas tecnologías y los
productos para el ocio electrónico.
Por su parte, Abc.es, la versión electrónica de ABC, ha
alcanzando durante 2007 importantes logros en su
propósito por convertirse en un actor destacado dentro del
mundo de las nuevas tecnologías y entre los usuarios de
Internet. Al mismo tiempo ha visto cómo han crecido de
manera extraordinariamente significativa sus cifras de
visitantes y usuarios.
Respecto al mundo de la cultura, un año más y son ya
dieciséis desde su aparición, ABCD las Artes y las Letras,
el ambicioso proyecto editorial en el que ABC vuelca sus
esfuerzos en este ámbito, ha dado puntual cuenta de
cuantas noticias y acontecimientos se han generado en
torno a los libros, el teatro, las artes plásticas, la
26
the incorporation of additional contents and sections, and a
new arrangement of the traditional news groups. At the
same time, other similarly relevant changes have been
made: the distribution of the magazine Mujer Hoy Corazón
has been extended to the whole national territory; there has
been an increase in the editions of ABC to the Comunidad
Valenciana and Castilla La Mancha; Aragón has a new
supplement, ZHT (Zaragoza, Huesca y Teruel), and theme
pages have been created on professional associations, the
environment, education, communication, religion, theatre,
cinema and health.
During 2007, ABC has continued to offer its readers both
global and local journalistic coverage. The regional delegations
of ABC in Comunidad Valenciana, Castilla La Mancha, Castilla
y León, Galicia, Aragón, Cataluña, Canarias and Andalucía
(Sevilla and Córdoba) have increased their great protagonism
in covering the main news events in their respective
geographical areas, and have become established as an
indisputable social benchmark. As for ABC’s complementary
publications for its readers, during 2007 different and
numerous initiatives have been launched to offer them a
Medios impresos ABC
Print media ABC
ABC’s ongoing commitment to offer its
readers quality news that is rigorous,
truthful and close to the citizens’
interests and concerns, has been carried
out staying true to its distinguishing
foundational marks.
arquitectura, el diseño, el cine, la música y las restantes
manifestaciones artísticas celebradas en nuestro entorno.
El acontecimiento más relevante de 2007 en el ámbito de la
cultura y la divulgación lo ha constituido el nacimiento de la
Fundación Colección ABC, una fundación cultural sin
ánimo de lucro que tiene por objeto la conservación,
custodia, difusión y promoción de la colección artística del
diario ABC, compuesta por más de 200.000 originales,
dibujos e ilustraciones de diversas categorías, utilizados para
su publicación en el referido diario y en otras publicaciones
desde 1891 hasta nuestros días.
La Fundación Colección ABC nace con la voluntad de
impulsar la creación del futuro Centro ABCD ARTE
AMANIEL. Este centro, cuya sede se situará en la
Comunidad de Madrid, es una iniciativa que por su
singularidad, relevancia e indudable valor artístico e histórico
de la colección, ha sido valorado muy positivamente tanto
por el Ayuntamiento como por la Comunidad de Madrid,
instituciones que han decidido prestar su apoyo al proyecto y
que están colaborando de manera decisiva en su desarrollo.
number of exceptional and exclusive products that have their
impact on cultural offerings (collections and editorial products
of reference, popular dissemination, etc.), entertainment,
state-of-the-art technologies and electronic leisure products.
On the other hand, Abc.es, the electronic version of ABC,
has made, during 2007, important achievements in its goal
to become a leading reference in the field of new
technologies and among Internet users. It has also seen how
its number of visitors and users has grown in an
extraordinarily significant way.
With regard to the world of culture, yet another year and it
has now been sixteen since ABCD las Artes y las Letras
first appeared, the ambitious editorial project in which ABC
spares no effort in this field, which has given detailed
account of all the news and events related with books, the
theatre, plastic arts, architecture, design, cinema, music and
other artistic expressions occurring in our environment.
The most relevant event of 2007 in the world of culture and
public dissemination has been the birth of the Fundación
27
Medios impresos ABC
Print media ABC
ABC en Clase ABC Universitario-ABC Solidario Premios Mariano de Cavia, Luca de Tena y Mingote Premio Joaquín Romero Murube Premios de Pintura y Fotografía de ABC Premio ABC Mejor coche del año 2007 Foro ABC En el ámbito del compromiso social, la actuación solidaria y las
relaciones con la comunidad, 2007 ha visto cómo se añadían
nuevas ediciones de iniciativas de gran relieve y trascendencia
que se han convertido en una tradición de ABC para con su
entorno. Entre ellas, merecen especial consideración:
ABC en Clase es la iniciativa que materializa el esfuerzo
de ABC por acercar el periódico a los alumnos de primaria
y secundaria y presentar a las nuevas generaciones una
visión analítica y sosegada de la realidad social y política.
ABC en clase ha acudido a su cita diaria con más de
60.000 escolares durante el pasado curso académico.
ABC Universitario-ABC Solidario es el proyecto donde
ABC concreta su esfuerzo por aproximarse a los jóvenes y a
los temas que les preocupan e interesan, merced a la
magnífica acogida que le viene dispensando tanto la
comunidad docente como la de los alumnos. Un año más,
en 2007 ha convocado y fallado sus ya tradicionales premios
anuales en los que participa un amplio colectivo de jóvenes
estudiantes de diversas universidades españolas y en los que
son galardonados instituciones y proyectos que destacan
por su compromiso social y su acción solidaria.
Premios Mariano de Cavia, Luca de Tena y
Mingote. Los más antiguos y prestigiosos galardones del
periodismo español, los tradicionales premios Cavia, Luca
de Tena y Mingote, que en la edición de 2007 se
otorgaron bajo la presidencia de los duques de Palma,
recayeron en el escritor Jon Juaristi (Cavia), por el artículo
Teología publicado en ABC; en el escritor, subdirector de
ABC y director de la Real Academia de Extremadura, José
Miguel Santiago Castelo (Luca de Tena), por su trayectoria
profesional y en el dibujante Agustín Sciammarella
(Mingote), por un tríptico publicado en El País tras las
últimas elecciones catalanas con las caricaturas de Artur
Mas, José Montilla y Carod Rovira.
28
Colección ABC, a non-profit cultural foundation whose
purpose is the conservation, safekeeping, dissemination and
promotion of the Colección artística del diario ABC,
consisting of more than 200,000 originals, drawings and
illustrations of various categories, used for publication in the
newspaper in question as well as in other publications since
1891 until nowadays.
Fundación Colección ABC was founded with the intention
of promoting the creation of the future Centro ABCD ARTE
AMANIEL. This centre, whose headquarters will be in the
Comunidad de Madrid, is an initiative that, due to the
singular nature, relevance and unquestionable artistic and
historical value of the collection, has been very positively
valued by both the Madrid City Council and the regional
government of the Comunidad de Madrid, institutions that
have decided to give their support to the project and which
are collaborating in its development in a decisive way.
As for social responsibility, acts of solidarity and community
relations, 2007 has seen how new editions were held of
highly significant and important initiatives that have become
a tradition of ABC regarding its environment. Among them,
the following deserve special mention:
ABC en Clase is the initiative that materializes ABC’s
effort to bring the newspaper closer to primary and
secondary school pupils, and to present the new
generations with an analytic and serene vision of social
reality and politics, both national and international. ABC
en clase was present at its daily meeting with more than
60,000 schoolchildren during the past school year.
ABC Universitario-ABC Solidario is the project in
which ABC materializes its effort to approach young
people and the subjects that concern and interest them,
thanks to the magnificent reception being given by
Medios impresos ABC
Print media ABC
Premio Joaquín Romero Murube, el galardón que
concede ABC de Sevilla al mejor trabajo periodístico sobre
temática sevillana, fue entregado en su octava edición al
periodista y columnista de ABC Carlos Herrera por su
artículo El Príncipe de las Tabernas publicado en el
suplemento XLSemanal.
teaching community and students alike. Once again, in
2007 the traditional annual prizes have been awarded, in
which a wide range of students from various Spanish
universities take part, and prizes are awarded to
institutions and projects that are outstanding for their
social responsibility and acts of solidarity.
Premios de Pintura y Fotografía de ABC. En su
octava edición este prestigioso galardón, que convoca a
centenares de obras y artistas de toda España, recayó en
Maider López con accésit para Juan Carlos Bracho, Jesús
Segura Cabalero y Moisés Mahiques Benavent, y
menciones honoríficas para Javier Arce, Martín Freire, Iván
Pérez Vidal e Igor Arrieta Varela.
Mariano de Cavia, Luca de Tena and Mingote
Awards. The oldest and most prestigious Spanish
journalism awards, the traditional Cavia, Luca de Tena and
Mingote Awards, which in 2007 were chaired by the Duke
and Duchess of Palma, and were awarded to the writer Jon
Juaristi (Cavia), for his article Teología Publisher in ABC; the
writer, assistant manager of ABC and director of the Real
Academia de Extremadura, José Miguel Santiago Castelo
(Luca de Tena), for his professional career, and the artist
Agustín Sciammarella (Mingote), for a triptych published in
El País following the last elections in Cataluña with the
caricatures of Artur Mas, José Montilla and Carod Rovira.
Premio ABC Mejor coche del año 2007. El evento
que convoca anualmente al mundo del motor, pionero en
su ámbito y otorgado por un jurado del que forman parte
más de 50 periodistas del motor de distintos medios
nacionales, concedió en su edición de 2007 el galardón al
Peugeot 207. La distinción fue entregada por el ministro
de Industria, Turismo y Comercio, Joan Clos i Matéu en
una ceremonia presidida por la presidenta de ABC,
Catalina Luca de Tena.
Foro ABC. Esta iniciativa de ABC, con la que se pretende
contribuir al debate político, económico y social, ha
convocado durante el ejercicio 2007 a las más relevantes
personalidades del mundo de la economía y de la política
en torno a las figuras del presidente del Gobierno, D. José
Luis Rodríguez Zapatero, el líder la oposición, D. Mariano
Rajoy, el presidente de la Comunidad de Murcia, D.
Ramón Luis Valcárcel, el presidente de la Generalitat
Valenciana, D. Francisco Camps, la presidenta de la
Joaquín Romero Murube Award, the prize awarded
by ABC Sevilla to the best journalistic work on the theme
of Sevilla, was given, during its eighth edition, to the ABC
journalist and columnist Carlos Herrera for his article El
Príncipe de las Tabernas published in the XLSemanal
supplement.
ABC Photography and Painting Awards. During
its eighth edition, this prestigious award, which brings
together hundreds of works and artists from all over Spain,
was given to Maider López, with second award
for Juan Carlos Bracho, Jesús Segura Cabalero and Moisés
Mahiques Benavent, and honorary mentions for Javier
Arce, Martín Freire, Iván Pérez Vidal and Igor Arrieta Varela.
29
Medios impresos ABC
Print media ABC
Comunidad de Madrid, Dª. Esperanza Aguirre, el alcalde
del Ayuntamiento de Madrid, D. Alberto Ruiz-Gallardón,
el ministro de Industria, D. Joan Clos, y el vicepresidente
segundo del Gobierno y ministro de Economía y
Hacienda, D. Pedro Solbes.
ABC Mejor coche del año 2007 Award. The event
that annually summons the motoring world, pioneer in its
environment and awarded by a jury consisting of more
than 50 motoring journalists from different national
media, in 2007, gave the award to Peugeot 207. The
award was presented by the Minister of Industry, Tourism
and Trade, Joan Clos i Matéu at a ceremony chaired by
the chairwoman of ABC, Catalina Luca de Tena.
Por último, 2007 ha visto el nacimiento del Premio
Gastronómico Blog Salsa de Chiles. Iniciativa pionera
que nace por la voluntad de ABC de acercar la comunidad
de lectores tradicionales del periódico, el mundo de la
gastronomía y el de las nuevas tecnologías. A partir del
exitoso blog de Abc.es “Salsa de chiles”, un jurado
compuesto por Ymelda Moreno (presidenta), Raimundo
García del Moral, Manuel Quintalero, Javier Ferradal y
Carlos Maribona designó como ganadores del certamen a
los establecimientos El Bulli (Mejor restaurante), El Poblet
(Cocina creativa), Etxebarri (Cocina tradicional), Baby Grill
Rubaiyat (Cocina económica y rápida) y El Celler de Can
Roca (Postres). Al tiempo, los usuarios y visitantes de Abc.es
otorgaban otras cinco distinciones a El Celler de Can Roca
(Cocina creativa), Príncipe de Viana (Cocina tradicional), La
Paninoteca D´E (Cocina económica y rápida), Casa Gerardo
(Postres) y Calima (Restaurante del año).
30
Foro ABC. This ABC initiative, which seeks to contribute
to the political, economic and social discussion forum, in
2007, has brought together some of the most relevant
personalities in the economic and political world around
the figures of the Spanish Prime Minister, José Luis
Rodríguez Zapatero, the leader of the opposition, Mariano
Rajoy, the President of the Comunidad de Murcia, Ramón
Luis Valcárcel, the President of the Generalitat Valenciana,
Francisco Camps, the President of the Comunidad de
Madrid, Esperanza Aguirre, the Mayor of Madrid, Alberto
Ruiz-Gallardón, the Minister for Industry, Joan Clos, and
Second Vice President of the Government and Minister of
Economy and Finance, Pedro Solbes.
Finally, in 2007 the Premio Gastronómico Blog Salsa de
Chiles award was created. This is a pioneer initiative created
by ABC with the purpose of bringing closer the community of
the newspaper’s traditional readers, the world of gastronomy
and that of new technologies. From the successful Abc.es
blog called “Salsa de chiles”, a jury formed by Ymelda
Moreno (Chairwoman), Raimundo García del Moral, Manuel
Quintalero, Javier Ferradal and Carlos Maribona, chose the
following establishments as the winners: El Bulli (Best
Restaurant), El Poblet (Creative Cooking), Etxebarri (Traditional
Cooking), Baby Grill Rubaiyat (Economic and Fast Cooking)
and El Celler de Can Roca (Desserts). At the same time,
Abc.es users and visitors awarded five more prizes to El Celler
de Can Roca (Creative Cooking), Príncipe de Viana (Traditional
Cooking), La Paninoteca D´E (Economic and Fast Cooking),
Casa Gerardo (Desserts) and Calima (Restaurant of the Year).
Medios impresos ABC
Print media ABC
662.000
lectores
readers
Difusión 2007 Circulation**
ejemplares
235.595 issues
40,8%
De 20 a 44 años
Aged 20 to 44
68,2%
Estudios de BUP, COU o superiores
Secondary or third-level education
59,4%
Hombres
Male
67,6%
Residentes en urbes +50.000 habitantes
Resident in cities with +50,000 people
83,3%
Clase alta, media alta y media media
Upper, upper-middle and middle-middle class
Difusiónpormeses**
Circulationpermonth**
**Datos mensuales OJD 2007. Pendiente de certificación anual
**OJD 2007 Monthly Data. Pending annual certification
31
Medios impresos Qué!
Print media Qué!
EL DIARIO GRATUITO QUÉ! ENTRÓ A FORMAR PARTE DE VOCENTO EL 1 DE AGOSTO DE 2007, Y VINO A
REFORZAR EL LIDERAZGO QUE EL GRUPO TIENE EN PRENSA EN ESPAÑOL, TANTO POR LA DIFUSIÓN TOTAL COMO
POR EL NÚMERO DE LECTORES.
Qué!
THE FREE NEWSPAPER QUÉ! JOINED VOCENTO ONL 1ST AUGUST 2007, STRENGTHENING THE GROUP’S
LEADERSHIP IN THE SPANISH PRESS, REGARDING BOTH ITS TOTAL CIRCULATION AND ITS NUMBER OF READERS.
32
Qué! tiene 17 ediciones y está presente en más de 19
ciudades: Madrid, Barcelona, Sevilla, Bilbao, Valencia,
Vigo, La Coruña, Gijón, Oviedo, Zaragoza, Palma de
Mallorca, Alicante, Málaga, Murcia, Cartagena, Lorca, San
Sebastián, Irún, Santander y Torrelavega, entre otras.
With 17 editions, it is present in more than 19 cities:
Madrid, Barcelona, Sevilla, Bilbao, Valencia, Vigo, La
Coruña, Gijón, Oviedo, Zaragoza, Palma de Mallorca,
Alicante, Málaga, Murcia, Cartagena, Lorca, San Sebastián,
Irún, Santander and Torrelavega, amongst others.
Con el diario nacional gratuito Qué! Vocento afianza su
presencia en algunas comunidades autónomas como
Cataluña, Galicia, y Baleares, donde la presencia del grupo
se producía a través de ABC.
With the free national newspaper Qué! Vocento confirms its
presence in some autonomous communities such as
Cataluña, Galicia, and Baleares, where the presence of the
group took place through ABC.
Este diario, cuyo contenido se basa en la cercanía a los
lectores, dispone de redacciones y equipos comerciales en
cada una de sus ediciones. Además, incorpora contenidos
especializados, como el suplemento semanal Qué Casas!
–que se publica los jueves–, y el recientemente lanzado Qué
Empleo! –todos los martes–. El diario se distribuye mediante
entrega en mano, por la mañana, y a través de expositores
en numerosos establecimientos durante todo el día.
This newspaper, the content of which is based on its proximity
to its readers, has editorial offices and commercial teams in
each one of its editions. It also includes specialized contents,
such as the weekly supplement Qué Casas! –published on
Thursdays–, and the recently launched Qué Empleo! –every
Tuesday–. The papers are handed out personally to readers in
the morning, and are also left on special newsstands in
numerous establishments during the day.
Medios impresos Qué!
Print media Qué!
1.955.000
lectores
readers
Difusión 2007 Circulation**
ejemplares
956.585 issues
55,9%
De 20 a 44 años
Aged 20 to 44
62,5%
Estudios de BUP, COU o superiores
Secondary or third-level education
49,6%
Hombres
Male
83,9%
Residentes en urbes +50.000 habitantes
Resident in cities with +50,000 people
75,6%
Clase alta, media alta y media media
Upper, upper-middle and middle-middle class
Audiencia Audience*
**PGD (enero-diciembre 2007)
**PGD (January-December 2007).
33
Medios impresos Suplementos y Revistas
Print media Supplements and Magazines
VOCENTO ES LÍDER EN LA PUBLICACIÓN DE SUPLEMENTOS
DE INFORMACIÓN GENERAL Y EN REVISTAS ESPECIALIZADAS.
SuplementosyRevistas
Taller de Editores (TESA) edita XLSemanal, TVMás, Mujer
Hoy y Mujer Hoy Corazón, suplementos semanales líderes
en sus respectivos sectores y que se sitúan entre las cuatro
revistas más leídas en nuestro país.
VOCENTO IS THE LEADER IN THE PUBLICATION OF GENERAL
NEWS SUPPLEMENTS AND SPECIALIZED MAGAZINES.
SuplementsandMagazines
Taller de Editores (TESA) publishes XLSemanal, TVMás,
Mujer Hoy and Mujer Hoy Corazón, weekly supplements
34
which are leaders in their respective sectors and are four of
the most-widely read magazines in our country.
XLSemanal
XLSemanal
DOS DÉCADAS DE VIDA
TWO DECADES OF LIFE
En noviembre de 2007 XLSemanal cumplió 20 años. Su
rigor y calidad informativa han convertido a esta revista en
la más leída en español. XLSemanal cuenta con una
audiencia que supera los 3,3 millones de lectores* y llega
todos los fines de semana a todos los rincones de España a
través de 22 diarios.
November 2007 marked the 20th anniversary of
XLSemanal. The accuracy and standard of its reporting
have turned this magazine into the most-widely read one
in Spanish. XLSemanal has a readership that exceeds 3.3
million* and every weekend it reaches every corner of
Spain through 22 newspapers.
XLSemanal se distribuye con todos los periódicos del grupo
(ABC, El Correo, El Diario Vasco, El Diario Montañés, La
Verdad, Ideal, Hoy, Sur, La Rioja, El Norte de Castilla, El
Comercio, La Voz y Las Provincias) y otros regionales líderes
en su ámbito geográfico (La Voz de Galicia, Heraldo de
Aragón, Diario de Navarra, Diario de Tarragona, Diario de
Burgos, Diario de León, Diario de Avisos, Diario de Menorca
y Diario de Ávila).
XLSemanal is distributed with all the newspapers belonging
to the group (ABC, El Correo, El Diario Vasco, El Diario
Montañés, La Verdad, Ideal, Hoy, Sur, La Rioja, El Norte de
Castilla, El Comercio, La Voz de Cádiz y Las Provincias) and
other regional papers that are leaders in their geographical
area (La Voz de Galicia, Heraldo de Aragón, Diario de Navarra,
Diario de Tarragona, Diario de Burgos, Diario de León, Diario
de Avisos, Diario de Menorca and Diario de Ávila).
De esta forma, casi cuatro de cada diez personas que
adquieren un dominical se decantan por el de Vocento que
cuenta, entre otros atractivos, con un importante elenco de
firmas como Carlos Herrera, Arturo Pérez-Reverte, Juan
Manuel de Prada o Carmen Posadas.
Nearly four out of every ten persons getting a Sunday paper
choose Vocento’s, which has, amongst other attractions,
articles signed by such renowned personalities as Carlos
Herrera, Arturo Pérez-Reverte, Juan Manuel de Prada or
Carmen Posadas.
Mujer Hoy
Mujer Hoy
REFERENCIA DEL SECTOR
SECTOR BENCHMARK
Es la revista para público femenino que se distribuye con los
periódicos de Vocento durante el fin de semana. Los datos
de audiencia de más de 2,1 millones de lectores* la colocan
como una de las publicaciones de referencia dentro de este
segmento y en sus páginas se pueden encontrar noticias
sobre moda, belleza, decoración y salud.
This is the women’s magazine distributed with Vocento
newspapers at the weekend. Its readership of 2.1 million*
means it is one of the benchmark publications in this sector,
with articles about fashion, beauty, decoration and health.
TVMás
LA TELEVISIÓN HECHA REVISTA
Vocento renovó su suplemento televisivo Semanal TV en el
mes de junio con el salida a los quioscos de su sucesor
TVMás. Con él, el grupo pretende hacer una revista
innovadora y de calidad. Más allá de la mera información
audiovisual, TVMás se acerca a las nuevas formas de ver y
hacer televisión con una cobertura especial del campo de las
nuevas tecnologías, como Internet, la telefonía o los
videojuegos.
*Fuente: EGM: 3er Año Móvil 2007
TVMás
TELEVISION IN A MAGAZINE
Vocento upgraded its television supplement Semanal TV in
the month of June, launching its successor TVMás. With this
supplement, the group seeks to publish an innovative and
quality magazine. Beyond the mere audiovisual news,
TVMás comes closer to the new ways of watching and
making television with a special coverage of the field of new
technologies, such as Internet, telephony or video games.
That’s why TVMás includes Conéctate, a section written by
journalists specialized in new technologies who every week
address topics related with the multimedia world in detail.
*Source: EGM: 3rd 2007 Moving year
35
Para ello, TVMás incluye Conéctate, una sección impulsada
por periodistas especializados en nuevas tecnologías que
profundizan cada semana en temas relacionados con el
universo multimedia.
It is the most widely-read magazine in its sector, with more
than 1.1 million readers* and an audience share of 51% in
terms of specialised TV magazines, four times the share of
its most direct competitor.
Es la revista más leída de su sector con más de 1,1 millones
de lectores* con una cuota del 51% de la audiencia de las
revistas especializadas en el mundo de la televisión, por lo
que cuadruplica a su competencia más directa.
I
I
Mi Cartera de Inversión
En sus páginas, cada semana el lector puede encontrar
análisis bursátiles y económicos en los que la independencia,
la rigurosidad y la seriedad son las características más
importantes. Mi Cartera de Inversión ha conseguido fidelizar
a la audiencia gracias a sus contenidos diferenciados.
Esta revista organiza las dos ferias de referencia en el sector
económico, Bolsalia (Madrid) y Borsadiner (Barcelona) y
numerosos premios como Fomento de la Cultura Económica
y Financiera, Buen Gobierno Corporativo, Obra Social de las
Cajas de Ahorros y Mejores Productos Financieros.
Su audiencia es de 80.800* lectores y su difusión de
16.788** ejemplares.
Mi Cartera de Inversión
Every week the reader can find in these pages market and
economic analyses, which are to be highlighted for their
independence, rigour and reliability. Mi Cartera de Inversión
has earned its readers loyalty thanks to its different
contents.
This magazine organizes the two most important finance
fairs, Bolsalia (Madrid) and Borsadiner (Barcelona) as well as
various awards such as Fomento de la Cultura Económica y
Financiera, Buen Gobierno Corporativo, Obra Social de las
Cajas de Ahorros and Mejores Productos Financieros.
It has a readership of 80,800* and a circulation of 16,788**
copies.
I
Motor 16
Motor 16 is a weekly magazine that has great prestige in
the motoring sector.
I
Motor 16
It has a readership of 99,000* and a circulation of 27,177***
copies.
Motor 16 es un semanario con gran prestigio dentro del
sector de la automoción.
Tiene una audiencia de 99.000* lectores y una difusión de
27.177*** ejemplares.
I
Mujer Hoy Corazón
WITH NO COMPETITION IN THE WEEKEND
SUPPLEMENT MARKET
I
Mujer Hoy Corazón
SIN COMPETENCIA EN EL MERCADO DE SUPLEMENTOS
DE FIN DE SEMANA
Taller de Editores completa su oferta editorial con Mujer Hoy
Corazón, revista dedicada a la actualidad de los famosos
caracterizada por un tratamiento de la información dinámico,
respetuoso y elegante. Desde su lanzamiento, en octubre del
año 2006, acompaña la oferta editorial de los sábados del
diario ABC y es muy bien valorada por su lectores.
36
**Fuente: OJD (enero-diciembre 2006)
***Fuente: OJD (octubre 2006-junio 2007)
Taller de Editores rounds off its publications with Mujer Hoy
Corazón, a magazine dealing with the latest on celebrities,
with a dynamic, respectful and elegant way of reporting.
Since it was first published in October 2006, it is distributed
with ABC Saturday papers and is very highly valued by its
readers.
***OJD (October 2006-June 2007)
3.379.000
lectores
readers
Difusión 2006Circulation**
ejemplares
1.186.570 issues
Audiencia Audience*
47,0 %
De 20 a 44 años
Aged 20 to 44
61,5 %
o superiores
education
51,7 %
Mujeres
Female
56,8 %
Residentes en urbes +50.000
habitantes
+50,000 people
74,5 %
y media media
middle-middle class
2.197.000
lectores
readers
ejemplares
981.070 issues
Audiencia Audience*
47,2 %
De 20 a 44 años
Aged 20 to 44
60,3 %
o superiores
education
70,4 %
Mujeres
Female
55,4 %
habitantes
+50,000 people
74,0 %
y media media
middle-middle class
37
1.109.000
lectores
readers
ejemplares
830.260 issues
Audiencia Audience*
45,7 %
De 20 a 44 años
Aged 20 to 44
55,5 %
o superiores
education
55,7 %
Mujeres
Female
54,8 %
habitantes
+50,000 people
68,6 %
y media media
middle-middle class
80.800
lectores
readers
ejemplares
16.788 issues
Audiencia Audience*
63,5 %
De 20 a 44 años
Aged 20 to 44
81,3 %
o superiores
education
69,3 %
Hombres
Male
61,6 %
habitantes
+50,000 people
88,0 %
y media media
middle-middle class
38
99.000
lectores
readers
Difusión Circulation***
ejemplares
27.177 issues
Audiencia Audience*
56,5 %
De 20 a 44 años
Aged 20 to 44
55,3 %
o superiores
education
77,9 %
Hombres
Male
57,9 %
habitantes
+50,000 people
74,6 %
y media media
middle-middle class
Difusión 2007 Circulation
325.000
ejemplares
issues
***Fuente: OJD (octubre 2006-junio 2007)
***OJD (October 2006-June 2007)
39
40
41
Audiovisual Punto Radio
Audiovisual
I
Punto Radio
After having been on air now for three years, Punto Radio
has fulfilled the aims that led to its creation, now being one
of the largest radio channels, as well as being established as
a national benchmark in its sector.
I
Punto Radio
Después de tres años de operaciones, Punto Radio ha
alcanzado los objetivos que impulsaron su creación al
situarse entre las grandes cadenas radiofónicas y al
consolidarse como medio nacional de referencia.
A lo largo de este ejercicio destacan dos claves que explican el
prestigio y reconocimiento alcanzado por Punto Radio y que
forman parte de los principios que inspiraron el nacimiento de
la cadena: el compromiso con el rigor y la objetividad en la
información y la apuesta por una programación de calidad. En
este año y en el contexto del producto radiofónico, merece
una mención aparte la incorporación de María Teresa Campos
que vuelve a la radio de la mano de Luis del Olmo, al que
complementa a la perfección al frente de Protagonistas.
También en este marco cabe señalar la calidad y creciente
contribución de las emisoras a la mejora de la programación
con contenidos locales.
Pero el año 2007 ha quedado marcado en la historia de la
Radio como el Año Protagonistas. La celebración de la
edición número 10.000 del programa pionero de la radio
española puso en marcha una gira sin precedentes por toda
nuestra geografía. Luis del Olmo y Punto Radio han llevado
Protagonistas en directo a 20 ciudades, con el colofón en
Zaragoza de la emisión 10.000. Un homenaje del mundo de
la radio y de la sociedad española a Luis del Olmo, en el que
se reunieron más de 600 personalidades.
42
During this year, there are two keys to explaining the
prestige and recognition achieved by Punto Radio and which
are part of the principles that inspired the creation of the
channel: its commitment to rigour and objectivity in
reporting and its emphasis on quality programmes. During
this year, and within the context of the radio product, it is
important to highlight the incorporation of María Teresa
Campos who has returned to radio, working together with
Luis del Olmo, whom she perfectly complements leading the
Protagonistas team. Also within this framework it is
necessary to point out the quality and growing contribution
of the radio stations to the improvement of programmes
with local contents.
But the year 2007 has gone down in the history of Radio
as “Protagonistas Year”. The celebration of programme
number 10,000 of the pioneer programme of Spanish
radio resulted in an unprecedented tour throughout the
country. Luis del Olmo and Punto Radio have taken the
Protagonistas show live to 20 cities, culminating in
Zaragoza with programme number 10,000. A tribute on
the part of the radio world and Spanish society to Luis del
Olmo, bringing together more than 600 well-known
public figures.
In short, the high commitment to the product in its different
formats has been ever-present in the growing success of
Punto Radio and it will continue to be essential for the
project development.
Audiovisual Punto Radio
Programas&Comunicadores
Programmes&Presenters
En resumen, la apuesta por el producto en sus diferentes
formatos ha estado presente en el creciente éxito de Punto
Radio y continuará siendo fundamental para el desarrollo
del proyecto.
Tan relevante como los contenidos ha sido la progresiva
ampliación de la red, que se ha acelerado con la resolución
de los primeros concursos del Plan Técnico Nacional de
Radio. El plan ha permitido a Punto Radio crecer con siete
nuevas frecuencias en La Rioja y Baleares. Estos magníficos
resultados nos permiten ser optimistas en cuanto a los
futuros concursos que se espera se resuelvan a lo largo del
año 2008 y en los primeros meses de 2009.
En 2007 también se ha trabajado en potenciar el canal
Internet, mejorando las herramientas de escucha y
participación de los oyentes y adaptando el audio a nuevos
soportes y formatos que ahora ya pueden ser disfrutados
por el público en la nueva web (www.puntoradio.com).
I
Protagonistas. Luis del Olmo & María Teresa Campos
I
Primera plana. José Miguel Azpiroz
I
La Tarde de Ramón García. Ramón García
I
De costa a costa. Félix Madero
I
El Mirador. Josep Pedrerol
I
Cinco Lunas. Rosa García Caro
I
A día de hoy. Alejandro Ávila
I
Ana en Punto Radio. Ana García Lozano
I
La buena vida. Elena Markínez
I
Nuevos ciudadanos. Sara Infante
I
Salud y calidad de vida. Ricardo Aparicio
I
Salimos de caza. Marcelo Verdeja
I
La trilla. Juan Quintana
I
Luces en la oscuridad. Pedro Riba
The progressive extension of the network has been just as
relevant as the contents, which has been sped up thanks to
the awarding of contracts for the first calls for bids of the
Plan Técnico Nacional de Radio. Thanks to this plan, Punto
Radio has been able to grow with seven new wavelengths
in La Rioja and Baleares. These magnificent results allow us
to be optimistic regarding future bids that should be
awarded throughout the year 2008 and during the early
months of 2009.
In 2007 the channel has also been working on promoting
the Internet channel, improving the listening tools and
the listeners' participation, as well as adapting the audio to
new supports and formats that can already be enjoyed by
the public on the new website (www.puntoradio.com).
43
Audiovisual Veralia
Radio Digital
Digital Radio
El desconocimiento del público acerca de los servicios DAB
es la principal causa del lento desarrollo de la radio digital.
A esto se une además, el limitado desarrollo del mercado
de receptores.
The public's lack of knowledge regarding DAB services is the
main reason for the slow development of digital radio. This,
and also the limited development of the receiver market.
Ante esta situación, los concesionarios han avanzado
solicitando al Ministerio de Industria, Turismo y Comercio la
modificación de los compromisos incluidos en sus ofertas y la
adopción de medidas que engloben a todos los agentes
implicados para el desarrollo de la radio digital DAB en España.
I
Veralia
Para la creación y gestión de contenidos, Vocento ha creado
Veralia, sociedad holding en la que ha agrupado las
participaciones que tiene en varias productoras y una
distribuidora de contenidos. Forman parte de Veralia las
productoras Grupo Europroducciones, BocaBoca
Producciones, Videomedia y la distribuidora Tripictures.
Grupo Europroducciones
Grupo Europroducciones se creó en 1991 y es una de las
más importantes empresas del sector con sedes en Madrid,
Italia, Portugal, Polonia y Turquía, además de realizar
operaciones en Grecia y Estados Unidos. La principal
actividad de Grupo Europroducciones se centra en la
producción de programas de entretenimiento, concursos de
gran formato, magazines, canales temáticos y series de
ficción, además de contar con medios técnicos y platós.
44
Therefore, applications have been made to the Spanish
Ministry of Industry, Tourism and Trade requesting the
modification of the agreements included in their offers and
the adoption of measures including all the agents involved
in developing DAB digital radio in Spain.
I
Veralia
For the creation and management of contents, Vocento has
created Veralia, a holding company in which it has grouped
together the shares it holds in various production companies
and a content distributor. Veralia is formed by the production
companies Grupo Europroducciones, BocaBoca Producciones,
Videomedia and the distribution company Tripictures.
Grupo Europroducciones
Grupo Europroducciones was founded in 1991 and is one of
the most important companies in the sector with offices in
Audiovisual Veralia
Además de contar con medios técnicos y platós, también
realiza labores de representación de artistas, entre los que se
encuentran María Teresa Campos, Alfredo Urdaci, Terelu
Campos y Dani Mateo.
Durante 2007, Grupo Europroducciones ha emitido varios
programas de entretenimiento con mucho éxito: Grand Prix
que ha conseguido récords de audiencia en un gran número
de cadenas autonómicas con los presentadores Bertín
Osborne y Cristina Urgel y el concurso musical Se llama
Copla, presentado por Eva González, que se ha convertido en
el gran éxito de Canal Sur con una media de cuota de más
del 32%, desafiando cada sábado a los programas emitidos
en cadenas nacionales. Se llama Copla seguirá en emisión
hasta marzo de 2008. También sigue produciendo el
magazine de actualidad Locos x Madrid, presentado por
Alfredo Urdaci y Terelu Campos, que ha iniciado su segunda
temporada en Onda6 TV en octubre de 2007.
Hay que destacar que Grupo Europroducciones está a cargo
de toda la programación de la cadena musical Fly Music,
canal que se emite en abierto a través de la TDT y que
cumplió dos años en noviembre de 2007. Fly Music ha
conseguido situarse como un canal de referencia para los
amantes de la música.
En el área de ficción, Grupo Europroducciones ha producido
durante el año 2007 la serie diaria CLA no somos ángeles
para Antena 3, protagonizada por actores como Mariano
Alameda, Héctor Colomé y William Miller, entre otros.
BocaBoca Producciones
BocaBoca Producciones es una de las principales
productoras españolas de la que Veralia posee el 70%.
Desde su nacimiento en 1988 se ha especializado en la
producción de series de ficción, cine y entretenimiento. El
Comisario, Pasapalabra o Al Salir de Clase son algunos
de los productos más conocidos elaborados por esta
compañía y que han gozado del respaldo de las audiencias
desde su nacimiento.
Madrid, Italy, Portugal, Poland and Turkey, besides doing
business in Greece and the United States. The main activity
of Grupo Europroducciones is the production of
entertainment programmes, large format game shows, talk
shows, special-interest channels and fiction series.
In addition to having technical media and sets, it also
handles the representation of artists such as María Teresa
Campos, Alfredo Urdaci, Terelu Campos and Dani Mateo
amongst others.
During 2007, Grupo Europroducciones has broadcasted
various highly successful entertainment programmes: Grand
Prix which has obtained record numbers of viewers on many
regional channels with the presenters Bertín Osborne and
Cristina Urgel, and the music contest Se llama Copla, hosted
by Eva González, which is now a hit on the Canal Sur with an
average market share of more than 32%, every Saturday
competing with the programmes shown on national
channels. Se llama Copla will run until March 2008. The
current affairs talk show Locos x Madrid, presented by
Alfredo Urdaci and Terelu Campos, is still on the air, having
started its second year on Onda6 TV in October 2007.
It is important to point out that Grupo Europroducciones is
in charge of all the programming of Fly Music channel,
which broadcasts unscrambled through DDT and which has
been running since November 2007. Fly Music has now
become a benchmark channel for music fans.
As for fiction programmes, in 2007 Grupo Europroducciones
has produced the daily series CLA no somos ángeles for
Antena 3, starring actors such as Mariano Alameda, Héctor
Colomé and William Miller, amongst others...
45
Audiovisual Veralia
BocaBoca Producciones
Durante el año 2007, BocaBoca ha seguido emitiendo
grande éxitos de audiencia como El Comisario y
Pasapalabra en Telecinco, así como el concurso Metro a
Metro en Telemadrid y la telenovela Laberint de Passions
en IB3. Por otra parte, durante 2007 se inició el rodaje de
Yo soy el Solitario, una historia de acción e intriga basada
en la investigación que llevó a la detención del presunto
ladrón de bancos más famoso de los últimos tiempos. Yo
soy el Solitario está protagonizada por Pepo Oliva y Emilio
Gutiérrez Caba, y su estreno en enero 2008 en Antena 3
supuso un éxito de audiencia.
Videomedia
Creada en 1982, es uno de los principales grupos
independientes de producción de contenidos en televisión.
Actualmente su actividad se centra en la producción de
series de ficción, aunque tiene amplia experiencia en la
producción de concursos, magazines y canales temáticos.
Videomedia es la productora de programas como Hospital
Central, MIR, El Precio Justo y Lo que necesitas es
amor, títulos que han marcado un hito en la televisión
BocaBoca Producciones is one of the main Spanish
production companies, of which Veralia holds a 70% share.
Since its creation in 1988, it has specialized in the production
of fiction series, films and entertainment programmes. El
Comisario, Pasapalabra or Al Salir de Clase are some of
the best-known programmes produced by this company and
that have been very successful since the first day.
During 2007, BocaBoca has continued to have huge
viewership ratings with the programmes El Comisario and
Pasapalabra on channel Telecinco, as well as with the
contest Metro a Metro on Telemadrid and the soap opera
Laberint de Passions on IB3. On the other hand, during
2007 shooting has begun on Yo soy el Solitario, an
action-thriller series based on the investigations that led to
the arrest of the most famous bank robbers of recent times.
The series stars Pepo Oliva and Emilio Gutiérrez Caba, and
its first episode broadcasted in January 2008 on Antena 3
was an overwhelming success.
Videomedia
Created in 1982, it is one of the main independent
television content production groups. It currently produces
fiction series, although it also has extensive experience in
the production of games shows, talk shows and specialinterest channels. A sample of programmes produced by
Videomedia are Hospital Central, MIR, El Precio Justo
and Lo que necesitas es amor, all milestones of Spanish
television. It also created, designed and produced the
special-interest channel Canal Cocina in its early years.
46
Audiovisual Veralia
española. También creó, diseñó y produjo el canal temático
Canal Cocina en los primeros años de su vida.
Durante 2007, Videomedia ha producido tres series de
ficción, Hospital Central, MIR y RIS para Telecinco, así como
dos programas de entretenimiento para Antena 3, Sorpresa,
sorpresa y Si yo fuera tú. Cabe destacar el récord de
Hospital Central, que en su decimocuarta temporada se ha
convertido en la serie española más longeva, con sus 205
capítulos emitidos desde su estreno en el año 2000. En el
mundo del teatro, el musical Fama, después de terminar las
representaciones de Madrid, ha hecho una gira por más de
40 ciudades españolas, que continúa, a día de hoy, con un
gran éxito de audiencia. En el mes de noviembre se estrenó la
nueva producción titulada El rey de bodas (The Wedding
Singer) en el Teatro Nuevo Alcalá de Madrid.
During 2007, Videomedia has produced three fiction
series, Hospital Central, MIR and RIS for Telecinco, as
well as two entertainment programmes for Antena 3,
Sorpresa, sorpresa and Si yo fuera tú. Hospital
Central, now running in its fourteenth year, is the longestrunning Spanish series, 205 episodes having been
broadcasted since it began in 2000. In the world of
theatre, the musical Fama, after closing in Madrid, has
toured more than 40 Spanish cities, still being a great hit
today. In November the new production El rey de bodas
(The Wedding Singer) opened at the Teatro Nuevo Alcalá
in Madrid.
Tripictures
Es la primera distribuidora independiente de España. Centra
su actividad en la compra de derechos de películas
americanas y europeas para distribuirlas a lo largo de todo el
ciclo de explotación en las diferentes posibilidades expositivas.
2007 ha sido un gran año para Tripictures. Lo confirman
títulos como Hairspray, la película musical del año,
Fracture, la apuesta de calidad con Anthony Hopkins como
protagonista y Hora Punta 3, que fue número uno en la
recaudación de taquilla el fin de semana de su estreno.
El broche final para este año de éxitos fue la
superproducción americana de 250 millones de dólares,
La brújula dorada. Se estrenó en los cines el pasado 5 de
diciembre de 2007 y ha sido la película con más ingresos de
taquilla estas Navidades al obtener una recaudación cercana
a los 13 millones de euros.
Tripictures
It is the top independent distributor in Spain. It deals with the
purchase of American and European film rights to distribute
them in all the different staged of their whole cycle.
2007 has been a great year for Tripictures. This can be seen
with the success of films like Hairspray, the musical film of
the year, Fracture, the quality film starring Anthony
Hopkins, and Hora Punta 3 (Rush Hour 3), which was a
number one box office hit the weekend it was released.
The finishing touch for this year full of hits was the
American 250 million dollar super production, La
brújula dorada (The Golden Compass), which was released
on 5th December 2007 and has been the biggest box office
hit this Christmas, with nearly 13 million euros.
47
Audiovisual Net TV Fly Music
I
Net TV
Durante 2007 han continuado las emisiones de Net TV y se
ha apostado por la variedad de géneros (música, cine,
teleseries, telenovelas, etc.). Según TNSofres, a finales de
año la penetración de la TDT en hogares españoles era del
23,4% y el consumo del 9,49%, lo que supone un gran
incremento respecto a años anteriores y un cambio en las
tendencias de consumo.
I
I
Net TV
During 2007 Net TV has continued broadcasting a variety of
genres (music, cinema, TV serials, soap operas, etc.).
According to TNSofres, at the end of the year DTT was
present in 23.4% of Spanish households and its use was
9.49%, showing a significant increase with regard to
previous years and a change in consumer trends.
Fly Music
Vocento, además, sigue apostando con firmeza por la
Televisión Digital Terrestre y participa de manera activa en
la Asociación para el Impulso de la TDT con el objetivo de
lograr la completa implantación de esta tecnología y
asegurar el apagón analógico en 2010. Fly Music es el
segundo canal otorgado a Vocento en octubre de 2005.
Se trata de un canal especializado en música producido por
Grupo Europroducciones.
I
Fly Music
Vocento continues to firmly commit itself to Digital
Terrestrial Television and actively takes part in the
Association for DTT promotion, in order to achieve full
implementation of this technology and ensure analogue
television close-down in 2010. Fly Music is the second
channel awarded to Vocento in October 2005.
It is a specialized music channel produced by Grupo
Europroducciones.
48
Audiovisual Punto TV
I
Punto TV
La televisión local ha conseguido mantenerse durante 2007
como una alternativa audiovisual tanto para los espectadores
como para el sector publicitario. A pesar de la fuerte
competencia en el sector de la televisión y la mayor
fragmentación de audiencias que se ha producido en este
ejercicio, Punto TV ha alcanzado una cuota de pantalla sobre
el consumo total de televisión de un 2,9% frente al 3,4% del
año pasado. Esta disminución viene en gran parte derivada
de la reclasificación de televisiones que anteriormente
TNSofres incluía en el apartado de locales (Onda6 TV Madrid
y TD8 autonómica en Cataluña) y que en 2007 han pasado a
la clasificación de televisiones autonómicas privadas.
Punto TV, la marca que engloba a las televisiones
autonómicas y locales de Vocento, se ha afianzado durante
2007 y ha conseguido aprovechar las sinergias en materia
de contenidos y comercialización, con 45 televisiones en 37
provincias y con una cobertura de doce millones de
ciudadanos. Cuenta con más de 2,6 millones de
espectadores diarios según los últimos datos de TNSofres.
Finalizó 2007 con una cuota del 14,39% del total del
mercado de televisión local frente al 14,43% del año
anterior, alcanzando una cuota de pantalla sobre el mercado
total de la televisión del 0,42%, frente al 0,50% de 2006.
La apuesta de Punto TV es un modelo de televisión de
calidad basado en una información y actualidad de
proximidad y que ocupa los espacios de máxima audiencia
prime time de las cadenas locales y autonómicas. A ésta se
suman los contenidos comunes de tipo generalista pero con
el criterio de ser alternativos a las grandes cadenas
generalistas que se proporcionan desde la cadena.
I
Punto TV
In 2007 local television has managed to maintain its position
as an audiovisual alternative for both viewers and the
advertising sector. In spite of the strong competition existing in
the television industry and the greater fragmentation of
audiences that has occurred this year, Punto TV has reached a
viewership share of 2.9% in comparison with last year’s 3.4%.
This drop is largely due to the reclassification of televisions that
TNSofres had previously included in the section of local
televisions (Onda6 TV Madrid and TD8 in Cataluña) and which
in 2007 have been listed as private regional televisions.
Punto TV, the brand that includes Vocento’s regional and
local televisions, has secured its position during 2007 and
has been able to make the most of the content and
marketing synergies, with 45 televisions in 37 provinces,
reaching twelve million citizens. It has more than 2.6 million
viewers every day according to the latest data published by
TNSofres. It ended 2007 with a 14.39% share of the local
television market in comparison with the previous year’s
14.43%, reaching a total television market share of 0.42%,
with regard to the figure of 0.50% in 2006.
Punto TV is a model of quality television providing local
information on current affairs, with prime-time positions on
49
Audiovisual Punto TV Onda6 TV
En 2007, además de las televisiones que ya contaban con
licencia digital autonómica (Madrid, Comunidad Valenciana,
Murcia y La Rioja) y con licencia digital local (Urbe TV en la
demarcación principal de Barcelona), en las que Vocento
ostenta participación mayoritaria, Vocento resultó
adjudicatario de la concesión de televisión digital de la
Comunidad Autónoma de Andalucía. Se han conseguido
igualmente las concesiones de doce demarcaciones digitales
locales en País Vasco y las tres principales demarcaciones
digitales locales de Asturias (Oviedo, Gijón y Avilés) a las que
se presentaron las televisiones locales de cada área.
local and regional channels. It also offers common contents
of general interest but with the criterion of being an
alternative to the other large general-interest channels
provided from the channel.
In 2007, apart from the televisions that already had their
regional digital licence (Madrid, Comunidad Valenciana,
Murcia and La Rioja) and with a local digital licence (Urbe
TV in the main demarcation of Barcelona), in which
Vocento holds a majority stake, Vocento was awarded the
digital television concession of the autonomous community
of Andalucía.
2007 ha sido un año de consolidación de la oferta de
contenidos de Punto TV, y es destacable la significativa
reducción del 26% del total gastos frente al año anterior.
I
Onda6 TV
Sociedad Gestora de TV OndaSeis obtuvo en diciembre de
1999 una licencia de Servicio Público de TDT otorgada por
la Comunidad de Madrid. Esto supone la explotación de un
programa integrado en el Canal 63, con capacidad para
cuatro programas, situando sus posibilidades de emisión en
esta nueva tecnología en las mismas condiciones operativas
que el operador público Telemadrid.
Onda6 TV ha mejorado a lo largo de 2007 su apuesta por
contenidos de calidad cercanos a los madrileños, y ha
logrado convertirse en la primera cadena privada de la
Comunidad de Madrid, solo por detrás de los canales
nacionales y de Telemadrid.
Según TNSofres, Onda6 TV se ha convertido en la opción
líder y referente del entorno local. Las emisiones de la cadena
en su media anual han sido sintonizadas por más de 3,8
millones de madrileños. De ellos, y en cómputo anual, su
media diaria ha ascendido hasta los 553.000 espectadores
50
Likewise, twelve local digital television concessions have
been awarded in País Vasco and the three main local digital
demarcations of Asturias (Oviedo, Gijón and Avilés) for
which the local televisions of each area had forwarded
their proposals.
2007 has been a year of consolidation for Punto TV
contents offer, and it has experienced a 26% reduction
in total costs with regard to the previous year.
I
Onda6 TV
In December 1999 Sociedad Gestora de TV OndaSeis was
awarded a DTT Public Service Licence by the Comunidad de
Madrid. This entails broadcasting an integrated programme
Audiovisual Onda6 TV
aportando una media anual del 0,8% de Share Total
Televisión y del 34,5% en Cuota de Televisión Local. Estas
cifras de audiencia suponen un crecimiento medio anual, con
respecto al año 2006, del 37% de la cuota local de televisión
en Madrid. De esta audiencia, su perfil es bien considerado
desde el punto de vista de target comercial, al
corresponderse con el de una persona de clase media-alta.
Además, ha actualizado sus emisiones con nuevos
contenidos que han evolucionado su programación próxima,
cercana, variada y diferente, con la implicación y
participación de reconocidos profesionales de la televisión
como Alfredo Urdaci y Terelu Campos, presentadores de
Locos x Madrid, Javier Reyero, presentador de Fútbol6 y
Alonso Caparrós, conductor de Oh la la! A lo largo del año,
se han producido programas junto con las principales
productoras de televisión: Grupo Europroducciones,
Mediapro, Korpa etc., con buenos resultados de audiencia.
2007 ha sido también el del crecimiento de los servicios
informativos de Onda6 TV al ser uno de los pilares de la
programación y una referencia informativa regional, tanto en
sus ediciones diarias como en sus programas especiales.
En el ámbito de la ficción y del entretenimiento, la apuesta
más fuerte de Onda6 TV ha sido Rebelde. La serie
mexicana emitida en la programación de tarde que ha
conseguido fidelizar al público joven de la cadena, ha
obtenido elevados registros de audiencia.
En la Comunidad de Madrid, la evolución de la TDT ha sido
creciente a lo largo de todo el año al alcanzar a finales del
mismo aproximadamente el 17% del consumo televisivo. La
emisión Digital Terrestre de Onda6 TV funciona y ha
funcionado en 2007 como uno de los motores de
crecimiento del canal, consolidando y mejorando sus datos
en este sistema de transmisión. Onda6 TV ha sido capaz de
on Canal 63, with the capacity for four programmes,
placing the broadcasting possibilities of this new technology
in the same conditions as the public operator Telemadrid.
During 2007 Onda6 TV has improved its commitment to
quality contents that are close to the inhabitants of Madrid,
having become the leading private channel in the
Comunidad de Madrid, only behind the national channels
and Telemadrid.
According to TNSofres, Onda6 TV has become the leading
local option and benchmark. A yearly average of more than
3.8 million viewers in Madrid have tuned into the
programmes broadcasted by this channel. According to the
yearly calculations, the average daily number of viewers has
risen to 553,000, giving a Total Television Share of 0.8% and
a Local Television Share of 34.5%. These viewership figures
mean an average yearly growth, with regard to the year
2006, of 37% in the Madrid local television market share.
With regard to these viewers, their profile is well considered
from a commercial target point of view, as they belong to
the upper-middle class.
It has also updated its programmes with new contents that
have improved its close-up, customized, varied and different
programming, with the involvement and participation of
well-known television personalities such as Alfredo Urdaci
and Terelu Campos, hosts of Locos x Madrid, Javier Reyero,
presenter of Fútbol6 and Alonso Caparrós host of Oh la la!
During this year, programmes have been produced together
with the main television production companies: Grupo
Europroducciones, Mediapro, Korpa etc., with good
viewership ratings. 2007 has also been the year of the
51
Audiovisual Onda6 TV Urbe TV
situarse en el prime time dentro de las cadenas más vistas en
la comunidad de Madrid, superando a opciones nacionales
como T5Sport, Canal 24 horas, Veo TV, o CNN+, entre otras.
growth of Onda6 TV news programmes, being one of the
pillars of its programming and a regional news benchmark,
both in its daily editions and its special programmes.
Onda6 TV comenzó en el mes de diciembre sus emisiones a
través de la plataforma Imagenio, en su dial número 9 en
Madrid. Con esto, la programación de Onda6 TV puede ser
recibida actualmente por todos los sistemas de difusión de
televisión en la práctica totalidad de la Comunidad de
Madrid, siendo accesible a todos los madrileños.
With regard to fiction and entertainment, Onda6 TV’s
strongest bet has been Rebelde. This Mexican series shown
in the afternoon has secured the loyalty of young viewers,
obtaining high viewership ratings.
In the Comunidad de Madrid the evolution of DTT has
increased during the whole year, reaching approximately 17%
of the television audience at the end of the year. Onda6 TV
Digital Terrestrial Television is, and has been in 2007, one of
the channel’s driving forces, consolidating and improving its
position in this broadcasting system. Onda6 TV has been one
of the most-viewed channels during prime-time in the
Comunidad de Madrid, beating national options like T5Sport,
Canal 24 horas, VeoTV, or CNN+, amongst others.
In December Onda6 TV began to broadcast through
Imagenio, on its dial number 9 in Madrid. With this, the
Onda6 TV programmes can be currently received by all
television broadcasting systems in practically the whole of
the Comunidad de Madrid, thus being accessible to all
Madrid residents.
En el mes de junio Onda6 TV lideró la creación del Grupo de
Televisiones Autonómicas Privadas dentro del sistema de
medición de audiencias de TNSofres, así como impulsó, siendo
miembro fundador, la creación de ASODAL, Asociación de
carácter nacional que engloba el conjunto de televisiones
Privadas Autonómicas y Locales con licencia digital de emisión.
I
Urbe TV
Dos hechos han marcado 2007 para Urbe TV. Por un lado la
puesta en marcha de la emisiones de Televisión Digital
Terrestre en Barcelona y por otro, la pérdida del canal
principal en analógico de Barcelona debido a la adjudicación
de éste para La Sexta.
La audiencia de Urbe TV ha descendido este año un 0,16%
respecto a 2006, cerrando 2007 con una media de 0,28%
de share. Este dato es especialmente significativo ya que en
el mes de julio se produjo el cambio de frecuencia del canal
principal de Barcelona y fue a partir de entonces cuando
se perdió gran parte de la audiencia. Fue en el mismo mes de
julio cuando comenzaron las emisiones en TDT. La aportación
de audiencia en TDT durante el mes computado es de
11,8%, con un 88,2% de aportación analógica.
52
In June, Onda6 TV headed the creation of the “Private
Regional” television group within the TNSofres audience
measuring system, and it also promoted, being the founding
member, the creation of ASODAL, a national Association
that groups together Private Regional and Local televisions
with a digital broadcasting licence.
I
Urbe TV
There have been two important events in 2007 for Urbe TV.
On the one hand, the implementation of Digital Terrestrial
Television in Barcelona, and, on the other, the loss of the
main analogue channel in Barcelona due to the latter being
awarded to La Sexta.
This year Urbe TV viewership has fallen 0.16% with regard
to 2006, 2007 closing with an average share of 0.28%. This
fact is especially significant since in July the main channel in
Barcelona changed its frequency, and since then it lost a
Audiovisual Telecinco
I
Telecinco
La cadena de televisión Telecinco, de la cual Vocento posee
un 13%, ha firmado en 2007 su cuarto liderazgo de
audiencia consecutivo con un 20,3% de share, un registro
que le ha llevado a establecer la mayor distancia histórica
sobre Antena 3 y TVE 1, a las que ha superado en 2,9 y 3,1
puntos, respectivamente.
La programación de Telecinco se ha impuesto un año más
en la banda horaria de mayor consumo televisivo, el prime
time, en la que ha crecido hasta un 20,9% de share, y ha
abierto una distancia superior a los 4 puntos sobre sus
inmediatos competidores. Este éxito se ha cimentado en la
variada oferta de la cadena, un compendio de las series
nacionales y extranjeras más vistas del año y de programas
de producción propia –la mayoría en directo– con mayor
aceptación entre los espectadores.
Telecinco ha liderado 2007 con rotundidad durante 256
días, 27 jornadas más que en 2006, y ha batido su propio
récord al imponerse de forma consecutiva en los 12 meses
del año. Un ejercicio más, su supremacía ha resultado
contundente tanto en las principales franjas horarias como
en el target comercial (22,5%), segmento en el que ha
encadenado 9 años de liderazgo ininterrumpido y que
confirma la sintonía absoluta de la cadena con el público
preferido por los anunciantes.
En este sentido, la acertada política comercial de
Publiespaña, la gestora de la publicidad de Telecinco, ha
marcado un hito en la historia de la televisión en España con
la superación de la barrera de los 1.000 millones de euros
de ingresos publicitarios televisivos brutos en el ejercicio
2007, una cifra nunca antes alcanzada por ningún operador
en España.
great part of its viewers. It was in the same month of July
when DTT broadcasting began. DTT viewership during the
month in question is 11.8%, and 88.2% for analogue
television.
I
Telecinco
Telecinco, a channel in which Vocento holds a 13% stake,
has seen its fourth consecutive year of leadership in 2007
with a 20.3% share of viewership, the largest ever
difference regarding Antena 3 and TVE 1, having surpassed
them in 2.9 and 3.1 points, respectively.
Once again Telecinco programmes have been top of the
prime-time ratings, its share having risen to 20.9%, being 4
points ahead of its immediate competitors. This success is
due to the varied offer of the channel, the most-widely
viewed national and foreign series and programmes is has
produced itself –most of them live– with the greatest
acceptance among viewers.
In 2007 Telecinco has by far been the leader in viewership
ratings during 256 days, 27 more than in 2006, having
broken its own record, since it has been so for a period of
12 months running. Once again, its supremacy has been
firmly established in both prime-time and commercial target
(22.5%), a segment in which it has been the leader for 9
years running, and which confirms the absolute connection
of the channel with the public preferred by advertisers. In
this sense, the excellent marketing policy on the part of
Publiespaña, Telecinco’s advertising management company,
has marked a milestone in Spanish television, exceeding
1,000 million euros in gross advertising revenues in 2007, a
figure that had never been obtained by any other operator
before in Spain.
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55
Internet
DURANTE EL AÑO 2007, Y SIGUIENDO LA TENDENCIA DEL ÚLTIMO TRIENIO, EL NÚMERO DE USUARIOS DE INTERNET
EN ESPAÑA HA IDO EN AUMENTO. EL PASADO AÑO, ESTE NÚMERO ALCANZÓ LA CIFRA DE 19,7 MILLONES, SEGÚN
EL ÚLTIMO ESTUDIO DE RED.ES.
Internet
DURING THE YEAR 2007, AND FOLLOWING THE TENDENCY OF THE LAST THREE YEARS, THE NUMBER OF INTERNET USERS
HAS RISEN IN SPAIN. LAST YEAR THIS FIGURE WAS 19.7 MILLION, ACCORDING TO THE LATEST STUDY BY RED.ES.
En esta tendencia alcista, la posición de Vocento durante
2007 ha sido muy destacada, con una línea de constate
crecimiento. Este año, según Nielsen/NetRatings Site
Census, el grupo ha superado los 15,4 millones de usuarios
únicos mensuales. Esta cifra supone que el 77% de los
internautas españoles visitaron el pasado año alguno de los
portales online de Vocento.
Por otra parte, el crecimiento experimentado por Vocento
en esta área de negocio le ha situado como el primer grupo
de comunicación en audiencia en Internet. Con el mayor
índice de crecimiento del sector, Vocento ha registrado
durante el último año –diciembre 2006/diciembre 2007– un
incremento del 84,7%, casi duplicando el crecimiento anual
medio del mercado (43,7%).
In this rising trend, Vocento’s position during 2007 has been
quite outstanding, with a constant line of growth. This year,
according to Nielsen/NetRatings Site Census, the group has
had more than 15.4 million monthly unique users. This
figure means that last year 77% of Spanish Internet users
visited some of Vocento’s online portals.
On the other hand, the growth experienced by Vocento in
this business area has placed it as the top communication
group regarding Internet users. With the highest growth rate
in the sector, during the last year –December 2006/December
2007– Vocento has registered an increase of 84.7%, almost
twice the average market annual growth rate (43.7%).
LATEST TRENDS
NUEVAS TENDENCIAS
Las actividades de Vocento en el campo de las nuevas
tecnologías abarcan: Portales Locales, Portales Verticales,
Portal Generalista, Portales de Anuncios Clasificados,
comercialización de contenidos, comercio electrónico,
conectividad y servicios de valor añadido en Internet.
56
Vocento’s business activities in the field of new technologies
cover: Local Portals, Vertical Portals, General Interest Portal,
Classified Ads Portals, content marketing, e-commerce,
connectivity and value-added Internet services.
The growth registered this last year confirms the successful
strategy followed by Vocento in this business area.
Internet
The group has diversified its offer on the Internet and made
a firm bet on new trends, such as the so-called civic
journalism.
I
El crecimiento registrado este último año confirma el éxito
de la estrategia seguida por Vocento en esta área de
negocio. El grupo ha diversificado su oferta en Internet y ha
apostado por las nuevas tendencias en la Red, como es el
caso del llamado periodismo ciudadano.
I
Portales Locales
Vocento cuenta con la mayor red de prensa local, a través
de la cual los usuarios pueden disponer de toda la
información que acontece en su entorno más cercano.
En 2007, el grupo ha llevado a cabo un rediseño de sus
ediciones digitales con el objetivo de dar un mayor
protagonismo y participación a los usuarios.
Las tendencias actuales de Internet y la web 2.0 han sido
los pilares básicos sobre los que se ha fundamentado este
nuevo diseño, primando la participación del usuario, la
rápida localización de la información y los contenidos
multimedia.
Esta estrategia, junto con la especialización geográfica con
la que ya contaban las ediciones digitales de Vocento, ha
contribuido a consolidar el liderazgo de estos portales en
sus regiones como referente informativo, de comunidad y
de servicios para el usuario.
Local Portals
Vocento has the largest network of local press, through
which users can get all the news on what is going on in
their area. In 2007, the group has redesigned its digital
editions in order to give users more protagonism and
participation.
Current Internet trends and Web 2.0 have been the basic
pillars on which this new design has been based, prevailing
the user's participation, the quick localization of information
and the multimedia content.
This strategy, together with the geographical specialization
which Vocento’s digital editions already had, has contributed
to consolidating the leadership of these portals in their
regions as community news benchmarks, providing services
for the user.
I
Vertical Portals
In a complementary way to local portals and ABC.es,
Vocento has a series of vertical portals that are distributed as
special-interest channels inside each one of the group
websites.
In these channels –vertical business with specialized
contents to attract segmented advertising– we can
highlight:
57
Internet
I
Portales Verticales
De forma complementaria a los portales locales y a Abc.es,
Vocento dispone de unos portales verticales que se
distribuyen como canales temáticos dentro de cada una de
las webs del grupo.
Dentro de estos canales –negocios verticales con contenidos
especializados para atraer publicidad segmentada– destacan:
www.hoycinema.com
En 2007 se ha consolidado como el portal netamente
español dedicado al cine. Según Nielsen Site Census ha
alcanzado una audiencia de 1,4 millones de usuarios únicos
en diciembre de 2007. El crecimiento, y el éxito frente a sus
competidores, se basa en la participación del usuario y en la
especialización temática.
Este portal ofrece una completa cartelera nacional, una base
de datos de más de 25.000 películas y sus protagonistas,
áreas para los fans del cine de terror y cine fantástico, así
como la posibilidad de compra de entradas online.
www.hoyinversion.com
2007 ha sido el segundo año en la actividad de este canal
que en diciembre, según Nielsen Site Census, ha alcanzado
una audiencia de 208.000 usuarios únicos. Este portal
especializado en finanzas es un práctico canal de consulta
para todo tipo de audiencia, no sólo para profesionales.
Dispone de información bursátil, análisis de valores y
cotizaciones en tiempo real.
www.hoymotor.com
En este portal el usuario puede encontrar una amplia base de
datos de vehículos de primera y segunda mano, con
comparativas de modelos y precios. En su segundo año de
actividad, este canal ha contado con una audiencia de 140.000
usuarios únicos en diciembre de 2007 (Nielsen Site Census).
www.hoycinema.com
In 2007 it has become firmly established as the Spanish
portal dedicated to the film world. According to the Nielsen
Site Census, in December 2007, it has reached an audience
of 1.4 million unique users. The growth, and the success in
comparison with its competitors, is based on the
participation of the user and theme specialization.
This portal offers a full national What’s On Section, with a
database of more than 25,000 films and their actors, areas
for lovers of horror and fantasy films, as well as the
possibility to purchase tickets online.
2007 has been the second year in the activity of this
channel that, in December 2007, according to the Nielsen
Site Census, has reached an audience of 208,000 unique
users. This portal specializes in finances and is a practical
channel for all types of users, not just for professionals. It
has real-time market information, stock analysis and rates.
www.hoymotor.com
On this portal the user can find a large database containing
first and second-hand vehicles, with model and price
comparisons. In its second year of activity, this channel has
had 140,000 unique users in December 2007 (Nielsen Site
Census).
I
Special-interest Channels
www.laguiatv.com
This is the group’s interactive channel specialized in
television that provides information on all television
programmes, and which is constantly being updated. Users
can find exclusive interviews with the stars of the different
currently successful series and programmes such as Gran
Hermano (“Big Brother”), House and Escenas de
58
Internet
Matrimonio, amongst others. According to the Nielsen Site
Census, this channel has been visited by 661,000 unique
users in December 2007.
www.mhmujer.com
I
Canales Temáticos
The website specializing in issues of special interest to
women, in its first year of running after its relaunching, in
December 2007, has been visited by 223,000 users.
www.laguiatv.com
El canal del grupo especializado en televisión cuenta con
una parrilla interactiva y ofrece información de toda la
programación de televisión en continua actualización. Los
usuarios pueden encontrar, asimismo, entrevistas en
exclusiva con los protagonistas de las series y programas de
éxito actual como Gran Hermano, House y Escenas de
Matrimonio, entre otros. Según Nielsen Site Census, este
canal ha sido visitado por 661.000 usuarios únicos en
diciembre de 2007.
www.mhmujer.com
La web especializada en el mundo de la mujer, en su primer
año de funcionamiento después de su relanzamiento, ha
contado en diciembre de 2007 con 223.000 usuarios.
Besides these, Vocento has other special-interest channels
such as the online version of the magazine XLSemanal,
www.xlsemanal.com; the one dealing with weather news,
www.canalmeteo.com; the channel dedicated to football
news, which includes live coverage of Spanish league
matches, and www.canalciclista.com, from where you can
see updated live information on main cycling events: Giro
d’Italia, Tour de France and Vuelta a España; the channel
specialized in all types of sports news www.hoysport.com;
and www.hoytecnologia.com which deals with the
increasingly omnipresent technological world and highly
based on the participation and assessment of news on the
part of the users.
Además de éstos, Vocento cuenta con otros canales
temáticos como la versión online de la revista XLSemanal,
www.xlsemanal.com; la dedicada a información
meteorológica, www.canalmeteo.com; el canal dedicado
a la información futbolística que incluye el seguimiento en
directo de los partidos de la liga española, y
www.canalciclista.com, desde el que se puede seguir en
directo los principales eventos de este deporte: Giro, Tour y
Vuelta a España; el canal especializado en todo tipo de
información deportiva www.hoysport.com y
www.hoytecnologia.com en torno al cada vez más
omnipresente mundo tecnológico y muy basado en
la participación y valoración de noticias por parte de
los usuarios.
59
Internet
I
General Interest Portal
Vocento has a majority shareholding in Ozú, a generalinterest portal that, with ten years of experience, has an
extensive offer in vertical channels, interactive and
community services.
I
I
Portal Generalista
Vocento cuenta con una participación mayoritaria en Ozú,
un portal generalista que, con diez años de experiencia,
cuenta con una amplia oferta en canales verticales, servicios
interactivos y de comunidad.
I
Clasificados
Con el objetivo de potenciar la transaccionalidad en
Internet, el grupo cuenta con un área de clasificados que
incluye cinco portales: dos dedicados al mundo del motor:
www.autocasion.com –versión digital de la revista líder en
el mercado de anuncios de automóviles de segunda mano,
Autocasión– y www.unoauto.com, portal para la venta de
vehículos de primera mano. El tercer portal,
www.infoempleo.com, está especializado en temas de
formación y empleo. El cuarto, dedicado al sector
inmobiliario, se denomina www.sacacasa.com y se
posiciona como un punto de referencia en la búsqueda de
vivienda. Y el quinto, www.tusanuncios.com, es un portal
de carácter generalista en el que se pueden encontrar
diversos anuncios clasificados por categorías. Todos ellos
han renovado sus webs a lo largo de 2007 y se han
colocado a la vanguardia de servicios a sus usuarios.
60
Classified Ads
With the purpose of promoting business on the Internet,
the group has an area of classified ads that includes five
portals: two dedicated to the motoring world:
www.autocasion.com –the digital version of the market
leader magazine dealing in second-hand vehicle ads,
Autocasión– and www.unoauto.com, portal for the sale
of first-hand vehicles. The third portal,
www.infoempleo.com, is specialized in training and
employment themes. The fourth, dealing in real estate, is
called www.sacacasa.com and is now a benchmark in the
house-hunting sector. And the fifth,
www.tusanuncios.com, is a general-interest portal in
which various ads can be found classified in categories. They
have also updated their websites during 2007 and are now
at the forefront in the provision of services to their users.
I
B2B
In this business area, Vocento is present in three fields:
integrated services, content creation and commercial
management. To do so, the group holds shares in:
I Sarenet (www.sarenet.es). It is a company providing
integrated Internet services. It has its own network of
interconnection nodes and a Type A. Sarenet project
telephony operator license, and Vocento holds the
majority shareholding in the company. It also has a
Internet
I
B2B
En esta área de negocio, Vocento está presente en tres
ámbitos: los servicios integrales, la creación de contenidos y
la gestión comercial. Para ello, el grupo participa en:
I Sarenet (www.sarenet.es). Es una empresa de
servicios integrales de Internet. Dispone de una red de
nodos de interconexión propios y una licencia de
operador de telefonía Tipo A. Sarenet, que está
participada mayoritariamente por Vocento, cuenta
también con una división de proyectos, está especializada
en medios de comunicación y desarrolla soluciones
tecnológicas y de asesoramiento para todo tipo de
empresas. Durante 2007 Sarenet ha comprado la empresa
Bitmailer, lo que le ha conferido un importante
crecimiento y de penetración en el mercado de Madrid.
I Mediatrader. Esta sociedad realiza contenidos
digitalizados para portales de Internet, instituciones y
empresas, y servicios de asesoramiento editorial. En el
último año ha centrado aún más su estrategia en la venta
de contenidos y el ámbito del product placement.
division specialized in media in which it develops
technological and advisory solutions for every type of
company. During 2007 Sarenet has bought the company
Bitmailer, which has given it an important growth and
penetration in the Madrid market.
I Mediatrader. This company provides digitized contents
for Internet portals, institutions and companies, and
editorial advisory services. During this last year it has
focused its strategy even more on the sale of contents
and the field of product placement.
I La Trastienda Digital
(www.latrastiendadigital.com). This company
manages the e-commerce stores integrated in the local
and vertical portals. In 2007, besides updating its website,
it has made important progress in incorporating topquality products into sectors such as sports, technology or
women’s issues, as well as in the distribution of products
through syndication in third-party networks (financial
companies or large distribution centres, amongst others).
I La Trastienda Digital
(www.latrastiendadigital.com). Esta sociedad es la
encargada de gestionar el comercio electrónico de las
tiendas integradas en los portales locales y verticales.
Durante 2007, además de la renovación de su web, ha
alcanzado importantes logros en la agregación de
productos de primer nivel en ámbitos como el deporte, la
tecnología o la mujer, así como en la distribución de
productos a través de la sindicación en redes de terceros
(entidades financieras o grandes centros de distribución,
entre otros).
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62
63
Otros negocios
Other businesses
VOCENTO ESTÁ PRESENTE EN TODA LA CADENA DE VALOR DEL SECTOR DE LA COMUNICACIÓN, CON
ACTIVIDADES COMPLEMENTARIAS QUE ENGLOBAN LA IMPRESIÓN, DISTRIBUCIÓN, SERVICIOS DE TELEFONÍA
DE VALOR AÑADIDO Y LA ORGANIZACIÓN DE EVENTOS Y PATROCINIOS. ESTO PERMITE APROVECHAR
SINERGIAS ENTRE LAS DISTINTAS ÁREAS DE NEGOCIO Y OFRECER UN SERVICIO INTEGRAL.
Otrosnegocios
Otherbusinesses
VOCENTO IS PRESENT IN THE WHOLE VALUE CHAIN OF THE MEDIA SECTOR, WITH COMPLEMENTARY
ACTIVITIES INCLUDING PRINTING, DISTRIBUTION, VALUE-ADDED TELEPHONY SERVICES AND THE
ORGANIZATION OF EVENTS AND SPONSORSHIPS. THIS ENABLES THE COMPANY TO MAKE THE MOST OF THE
SYNERGIES BETWEEN THE DIFFERENT BUSINESS AREAS AND OFFER AN INTEGRATED SERVICE.
64
Otros negocios
Other businesses
PRINTING
IMPRESIÓN
Comeco Impresión es la empresa del grupo que gestiona esta
actividad mediante sus sociedades participadas. En 2007, el
negocio de impresión ha crecido sustancialmente con la
expansión a nuevos mercados y el desarrollo de inversiones
significativas en aquellos en los que ya estaba presente.
En el País Vasco y sus zonas limítrofes, Vocento ofrece
servicios de impresión a través de Bilbao Editorial
Producciones S.L. y de Sociedad Vascongada de
Producciones, S.L.U., ambas participadas al 100% por
Comeco Impresión.
En enero de 2007, Comeco abordó la expansión en el
mercado levantino a través de Localprint S.L. Esta sociedad
–participada al 50% por Comeco Impresión y Editorial
Prensa Ibérica– cuenta con dos rotativas que dan cobertura
a la costa levantina, desde Alicante a Almería.
Comeco Impresións is the group company that manages
this activity through its affiliated companies. In 2007, the
printing business has grown substantially with expansion
to new markets and the development of significant
investments in which it was already present.
In País Vasco and its bordering areas, Vocento provides
printing services through Bilbao Editorial Producciones S.L.
and Sociedad Vascongada de Producciones, S.L.U., both
wholly owned by Comeco Impresión.
In January 2007, Comeco undertook expansion in the
Levante market through Localprint S.L. This company
–owned 50% by Comeco Impresión and Editorial Prensa
Ibérica– has two newspapers that cover the Levante coast,
from Alicante to Almería.
Finally, Comeco Impresión has invested in a printing plant in
Valladolid (Printolid), with the aim of providing services for
the Castilla y León market. The new plant will be operative
during the third quarter of the year 2008.
DISTRIBUTION
Por último, Comeco Impresión ha acometido la inversión de
una planta de impresión en Valladolid (Printolid), con el fin
de atender el mercado de Castilla y León. La nueva planta
entrará en funcionamiento previsiblemente a lo largo del
tercer trimestre del año 2008.
Distribution management mainly affects written press, one
of the group’s principal business areas. This activity includes
point of sale or home delivery and is supplemented with the
distribution of commercial products for sale at newsstands
65
Otros negocios
Other businesses
Desde 2007, Comeco cuenta con dos rotativas que dan cobertura a la costa levantina,
desde Alicante a Almería.
DISTRIBUCIÓN
La gestión de la distribución atañe fundamentalmente a la
prensa escrita, una de las principales áreas de negocio del
grupo. Esta actividad engloba la entrega en punto de venta
o en el domicilio y se complementa con la distribución de
productos comerciales para venta en quioscos y librerías o
los servicios mediante datáfonos (recarga de móviles,
tarjetas de transporte etc).
Distribuciones Comecosa S.L.U. es la empresa matriz que
agrupa las participaciones en diferentes distribuidoras
regionales, entre las que destacan Distribución de Prensa
por Rutas (DistriRutas) y Beralán.
DistriRutas opera fundamentalmente en la Comunidad de
Madrid, al ser la distribuidora de ABC y otros productos
editoriales. Por su parte, Beralán realiza su actividad en el
área del País Vasco y provincias limítrofes (Navarra, La Rioja,
Burgos y Cantabria), a través de sus sociedades participadas,
Banatu y Sector MD (especializada en reparto de prensa a
domicilio, reparto de prensa gratuita en la calle y
distribución de publicidad y propaganda).
La distribución en el resto de la península se ejecuta a través
de Cirpress (www.cirpress.com), Valdisme
(www.valdisme.com), Distrimedios (www.distrimedios.es),
Papiro, Gelesa (www.gelesa), Dasa, Boreal y Marina Press
(www.marinapress.com), todas ellas participadas por
Distribuciones Comecosa.
66
and bookstores or dataphone services (mobile phone topups, transport cards etc).
Distribuciones Comecosa S.L.U. is the main company that
has holdings in different regional distribution companies,
amongst those being Distribución de Prensa por Rutas
(DistriRutas) and Beralán.
DistriRutas operates mainly in the Comunidad de Madrid,
since it distributes ABC and other editorial products. On the
other hand, Beralán does business in the area of the País
Vasco and bordering provinces (Navarra, La Rioja, Burgos
and Cantabria), through its affiliated companies, Banatu and
Sector MD (specialized in press home delivery service, the
handing out of free press on the street and publicity and
propaganda distribution).
Distribution in the rest of the peninsula is carried out by
Cirpress (www.cirpress.com), Valdisme (www.valdisme.com),
Distrimedios (www.distrimedios.es), Papiro, Gelesa
(www.gelesa), Dasa, Boreal and Marina Press
(www.marinapress.com), all affiliated companies of
Distribuciones Comecosa.
Otros negocios
Other businesses
Since 2007 Comeco has
two rotary printing presses that
cover the east coast of Spain, from
Alicante to Almeria.
SERVICIOS TELEFÓNICOS DE VALOR
AÑADIDO
Vocento ofrece servicios telefónicos de valor añadido a
través de Cotlan 900 S.L. La empresa dispone de una
plataforma de Contact Center que permite proporcionar un
servicio integral al cliente y cuenta, además, con líneas de
tarificación adicional y mensajería móvil (SMS).
Cotlan 900 S.L. (www.cotlan900.com) está especializada en
medios de comunicación.
VALUE-ADDED TELEPHONY SERVICES
Vocento offers value-added telephony services through
Cotlan 900 S.L. The company has a Contact Center platform
that allows to provide the client with an integrated service,
and also has additional lines of tariffing and mobile
messaging services (SMS).
Cotlan 900 S.L. (www.cotlan900.com) is specialized in the
media.
EVENTS AND SPONSORSHIPS
EVENTOS Y PATROCINIOS
Steinberg es una agencia de servicios de marketing y
publicidad especializada en la organización de eventos y
acciones below the line. En 2007, Steinberg ha trabajado
en el desarrollo de nuevos productos y servicios “llave en
mano”, consolidándose como una agencia alternativa a las
tradicionales de marketing y publicidad.
La participación de Vocento en el accionariado de Steinberg
persigue el objetivo de situar a la compañía en una posición
de liderazgo en el sector.
Steinberg is a marketing and advertising services agency
specialized in the organization of below-the-line events and
actions. In 2007, Steinberg has worked on the development
of new “turnkey” products and services, becoming
consolidated as an alternative to traditional marketing and
advertising agencies.
Vocento’s stake in the Steinberg shareholding aims at
placing the company in a leading position in the sector.
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68
69
Recursos Humanos
Human Resources
EL AÑO 2007 HA SUPUESTO LA CONSOLIDACIÓN DE LA FUNCIÓN DE RECURSOS HUMANOS COMO
SOPORTE ESENCIAL PARA LA CONSECUCIÓN DE NUESTRA ESTRATEGIA COMO GRUPO, Y PARA ESTABLECER
LAS CONDICIONES QUE FACILITAN LA ADAPTACIÓN AL NUEVO MODELO ORGANIZATIVO QUE DICHA
ESTRATEGIA IMPLICA.
RecursosHumanos
La diversidad de negocios que componen Vocento, así como
su dispersión geográfica, unido a la adaptación a nuevas
formas de gestión, han hecho de esta orientación hacia las
personas una de las claves de nuestra evolución y cohesión
como grupo, especialmente a nivel directivo.
Vocento’s diversity of business, as well as its geographical
dispersion, together with the adaptation to new forms of
management, have made this orientation toward people
one of the keys of our evolution and cohesion as a group,
especially at management level.
Durante este año se han potenciado especialmente entre el
colectivo de directivos las competencias relacionadas con la
comunicación interna bidireccional, que nos ha acercado a
los empleados y al cliente, y ha supuesto un elemento
importante para la adecuada gestión de los equipos de
trabajo de los más de 250 directivos de Vocento. Otras
competencias que han seguido desarrollándose durante este
periodo han sido la innovación, la iniciativa, el trabajo en
equipo, la flexibilidad y la visión estratégica
During this year, competences related with bidirectional
internal communication have been especially promoted in
the management community, which have brought us closer
to employees and to the client, and it has meant an
important element for the appropriate management of
Vocento work teams of more than 250 executives. Other
competences that have continued being developed during
this period have been innovation, initiative, teamwork,
flexibility and strategic vision.
Asimismo, a través de la herramienta del Plan Director de
Formación, se ha generalizado la inversión en formación
como elemento de motivación y mejora del rendimiento, y
se han impulsado actuaciones que servirán como base para
la detección de talento, la gestión del conocimiento, y la
definición de carreras profesionales y planes de sucesión.
Likewise, through the Training Management Plan tool,
investment in training has been generalized as an element
of motivation and performance improvement, and actions
have been promoted that will be used as a base for
detecting talent, knowledge management, and the
definition of professional careers and succession plans.
HumanResources
THE YEAR 2007 HAS MEANT THE CONSOLIDATION OF THE HUMAN RESOURCES FUNCTION AS THE
ESSENTIAL SUPPORT FOR ACHIEVING OUR STRATEGY AS A GROUP, AND TO ESTABLISH THE CONDITIONS
THAT FACILITATE THE ADAPTATION TO THE NEW ORGANIZATIONAL MODEL INVOLVED IN THIS STRATEGY.
70
Recursos Humanos
Human Resources
Plantilla por edad
Staff according to age
Plantilla por antigüedad
Staff according to length of service
Por otra parte, durante este año la política retributiva y el
sistema de gestión del desempeño de los directivos se ha
consolidado como una auténtica herramienta de gestión.
El capital humano de Vocento destaca por su juventud y
formación: en su mayor parte no supera los 45 años (75%),
y el personal titulado compone la mayoría de su plantilla.
On the other hand, during this year the payment policy and
the executive performance management system have been
consolidated as an authentic management tool.
Durante 2007 se ha producido un incremento en la plantilla
de Vocento motivado principalmente por la incorporación al
grupo del diario Qué! y el crecimiento del negocio de
Nuevas Tecnologías.
Vocento’s human capital stands out for its young age and
high qualifications: in most cases, staff members do not
exceed the age of 45 (75%), and the workforce is mostly
made up by qualified personnel.
La plantilla media de Vocento ha sido de 5.076 empleados.
El personal temporal ha supuesto de media el 17% de la
plantilla total del grupo.
During 2007 there has been an increase in Vocento’s
workforce mainly due to the newspaper Qué! joining the
group and the growth in the New Technologies business
sector.
En cuanto a la distribución de la plantilla por áreas
geográficas, Vocento sigue estando presente en la mayoría
de las Comunidades Autónomas. La mayor parte de la
plantilla sigue concentrándose en Madrid (34,07%) y País
Vasco (26,18%).
FORMACIÓN
Durante el último ejercicio, la formación se ha consolidado
como instrumento de potenciación del talento y de
promoción del desarrollo profesional, se ha orientado
especialmente al colectivo de mandos intermedios, y ha
puesto el acento en los módulos temáticos del colectivo de
directivos, en los que se promueve la convivencia y el
intercambio de experiencias.
Vocento’s average workforce has been 5.076 employees.
Temporary workers have been 17% of the total group
workforce.
As for the breakdown of staff according to geographical
area, Vocento is still present in most Autonomous
Communities. Most of the workforce still continues to be in
Madrid (34,07%) and País Vasco (26,18%).
TRAINING
During the last year, training has been consolidated as an
instrument for promoting talent and professional
development, being especially aimed at the middle
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Recursos Humanos
Human Resources
Distribución por grupos profesionales
Breakdown according to professional group
Vocento mantiene convenios de prácticas con prestigiosas
universidades de España para facilitar a los jóvenes su
primer contacto con el mundo laboral. Asimismo, Vocento
imparte los Máster de Periodismo de ABC y El Correo, en los
que, con la ayuda de un profesorado del más alto nivel del
sector periodístico y de comunicación, los alumnos se
desenvuelven en un ambiente laboral real, que les permite
adquirir las bases de su futuro desarrollo profesional.
El Máster de Periodismo ABC-Universidad
Complutense de Madrid en el marco de la legislación
universitaria (Convenio de 1 de septiembre de 2006 entre la
Universidad Complutense y Diario ABC), con la XVIII
promoción del Máster de Periodismo son ya 333 los
posgraduados en Magíster Universitario, de los que el
15,31% procedieron de países de Latinoamérica, y el
82,28% accedieron desde licenciaturas de Comunicación.
Los alumnos compaginan la formación académica con la
realización de prácticas en el aula del Máster dirigidas por
subdirectores y redactores de ABC, así como por periodistas
de Vocento. El alumno culmina su proceso docente con
prácticas plenas en la Redacción de ABC, adecuando el
sistema de trabajo al desarrollado por los grandes diarios
impresos que son referencia en los periódicos de calidad.
En este último curso se matricularon 15 alumnos, dos de los
cuales no procedían de licenciaturas de Comunicación, en
tanto que las plazas de la Escuela de Prácticas de Periodismo
ascendieron a 18, dentro de los convenios suscritos con las
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Distribución de plantilla media
por áreas de actividad
Breakdown of average staff according
to business activity
management group, and emphasis has been placed on
theme modules of the management group, fomenting
behavioural skills and the exchange of experiences.
Vocento has signed internship agreements with important
Spanish universities to provide young people with their first
contact with the employment market. Vocento also offers
the ABC and El Correo Master’s Degree in Journalism,
where, with the help of top level teachers in the journalistic
and media sector, students learn how to get on in a real
work environment that allows them to acquire the
foundations of their future professional career.
Máster de Periodismo ABC-Universidad Complutense
de Madrid within the framework of university regulations
(Agreement of 1st September 2006 between the Universidad
Complutense and Diario ABC), in the 18th year of the
Master’s Degree in Journalism, 333 postgraduates have
obtained their degree, of which 15.31% came from Latin
American countries, and 82.28% were Media graduates.
Students combine academic instruction with practical
training in the lecture room, under the direction of ABC
assistant managers and editors, as well as Vocento
journalists. Students conclude their training process with full
internship at an ABC office, adapting the work system to
the one carried out by the printed newspapers that are a
benchmark of quality press.
15 students enrolled in the past course, two of which had
not taken Media studies, and there were 18 places at the
Recursos Humanos
Human Resources
Distribución de plantilla media por áreas
funcionales
Breakdown of average staff according
to functional area
Actividades formativas
Training activities
Universidades Complutense, Europea CEES, Antonio de
Nebrija, Universidad San Pablo-CEU, Carlos III, Rey Juan
Carlos y Centro Universitario Villanueva, de Madrid;
Universidad de Navarra y Universidad Pontificia de
Salamanca.
Escuela de Prácticas de Periodismo, within the agreements
signed with the following universities: Complutense,
Europea CEES, Antonio de Nebrija, Universidad San PabloCEU, Carlos III, Rey Juan Carlos and Centro Universitario
Villanueva, in Madrid; Universidad de Navarra and
Universidad Pontificia de Salamanca.
Ocho graduados del Máster de esta última promoción han
sido contratados, al término del Curso y de las prácticas de
verano, por distintos medios del grupo. En la actualidad,
componen la redacción de ABC y de otros medios de
Vocento más de cincuenta periodistas pertenecientes a
quince promociones distintas del Máster.
Eight graduates from the last Master’s degree have since
been taken on at different group companies, when the
course has ended as well as the summer internship. There
are currently more than fifty journalists working at ABC and
other Vocento group companies belonging to fifteen
different years of the Master’s degree.
El Máster de Periodismo de El Correo y la Universidad del
País Vasco arrancó el curso 2007/2008 con el reto de
consolidar su trasformación en Máster Oficial de carácter
profesional, conforme a las normas establecidas por la
Declaración de Bolonia. La adaptación a estas directrices
supone un reconocimiento europeo para nuestro Máster.
The Máster de Periodismo de El Correo y la Universidad del
País Vasco started in the academic year 2007/2008 with the
challenge of consolidating its conversion into an Official
Master’s degree of a professional nature, within the
framework established by the Bologna Declaration. The
adaptation to these directives means European recognition
for our Master’s degree.
El Máster celebrará a lo largo de este curso, sus primeros 20
años de existencia. Desde el inició de su andadura en 1988,
han pasado por sus aulas 612 alumnos, procedentes de casi
todas las provincias españolas así como de varios países
extranjeros especialmente latinoamericanos. El Máster
mantiene su estructura multimedia con sus cuatro grandes
áreas de prensa, radio, televisión y ediciones digitales, que
se prolongan con un periodo de prácticas en los distintos
medios de Vocento. En definitiva, el Máster de El Correo
mantiene su apuesta en un continuado esfuerzo por
trasmitir a nuestros alumnos una formación de calidad,
enfocada al rigor informativo y valores éticos.
This year the Master’s degree will celebrate its 20th
anniversary. Since it began in 1988, 612 pupils have taken
this degree, coming from nearly all over Spain, as well as
several foreign countries, especially Latin America. The
Master programme maintains its multimedia structure with
its four main press areas, radio, television and digital
editions that are extended with a period of internship at
different Vocento group companies. In short, El Correo
Master’s degree maintains its ongoing commitment to
provide our students with quality training, focused on the
accuracy of reporting and ethical values.
73
74
75
Vocento y su compromiso social
LA LABOR EDITORIAL Y PROFESIONAL DE VOCENTO TIENE COMO OBJETIVO PRIMORDIAL EL
SERVICIO A SUS AUDIENCIAS Y A LA SOCIEDAD EN SU CONJUNTO. ESTÁ COMPROMETIDO EN
LA DEFENSA DE LA PLURALIDAD DE LA SOCIEDAD ESPAÑOLA Y DE LOS GRANDES VALORES
QUE INSPIRAN EL MARCO DE CONVIVENCIA BASADO EN LOS DERECHOS Y LIBERTADES
FUNDAMENTALES QUE CONSAGRA LA CONSTITUCIÓN DE 1978.
Vocento y sucompromisosocial
Vocentoandits
socialcommitment
VOCENTO’S PROFESSIONALISM AND PUBLISHING ACTIVITIES HAVE THE PRIMORDIAL OBJECTIVE
OF PROVIDING SERVICE TO ITS CLIENTS AND TO SOCIETY AS A WHOLE. THE COMPANY IS
COMMITTED TO DEFENDING THE PLURAL NATURE OF SPANISH SOCIETY AND THE IMPORTANT
VALUES THAT SUPPORT THE FRAMEWORK OF PEACEFUL CO-EXISTENCE, BASED ON THE
FUNDAMENTAL RIGHTS AND LIBERTIES DESCRIBED IN THE SPANISH CONSTITUTION OF 1978.
76
Vocento, por medio de un periodismo riguroso y de calidad, realiza una defensa de
la pluralidad y de los derechos fundamentales mediante la difusión de los valores
democráticos.
La responsabilidad social corporativa se ejerce en Vocento,
presente en casi todo el territorio nacional con más de
cinco millones de lectores y más de 15,3 millones de
usuarios únicos, a través de todos sus medios y por medio
de un periodismo riguroso y de calidad.
Además, Vocento ha impulsado a lo largo de 2007 distintas
iniciativas para promover los valores universales que
siempre ha defendido.
El grupo intenta brindar a los jóvenes una plataforma
cimentada en la educación sobre la que poder saltar y
posicionarse en el mercado laboral. Por un lado, mantiene
convenios de prácticas con universidades españolas para
ofrecer a los estudiantes la oportunidad de tener un primer
contacto con la empresa. Por otro, ya son 19 promociones
las que han salido del Máster de Periodismo ABCUniversidad Complutense de Madrid en el que los
alumnos compaginan la formación académica teórica con
la práctica.
Vocento exercises its corporate social responsibility by being
present in virtually all of Spain, with more than five million
readers and over 15.3 million dedicated users, through its
media and accurate, high-quality journalism.
In addition, in 2007 Vocento has fostered many initiatives
for promoting the universal values it has always defended.
The group seeks to offer young people a platform based
on education from which they will be able to access a
good position in the employment market. On the one
hand, it holds internship agreements with Spanish
universities to offer the students the opportunity to have a
first contact with the company. On the other, for the past
19 years students have been graduating with the Master
de Periodismo ABCUniversidad Complutense de
Madrid degree, where they combine theoretical academic
instruction with practical training.
77
Vocento, through its accurate and quality reporting, defends plurality and
fundamental rights by disseminating democratic values.
78
Vocento también participa en el Premio Emprendedores
Ernst&Young, un galardón organizado por la prestigiosa
consultora que desde 1996 reconoce la labor de los
emprendedores de nuestro país.
Vocento also participates in the Premio Emprendedores
Ernst&Young, an award organized by the renowned
advisory consultant that has been acknowledging the work
of entrepreneurs in our country since 1996.
Durante el pasado año los Foros ABC reunieron a
personalidades del mundo empresarial y político para crear
un punto de encuentro en el que debatir los temas de la
más candente actualidad. Entre otros, cabe destacar la
presencia de José Luis Rodríguez Zapatero, presidente del
Gobierno, Mariano Rajoy, líder de la oposición, Pedro
Solbes, ministro de Economía y Hacienda, Esperanza
Aguirre, presidenta de la Comunidad de Madrid y Alberto
Ruiz Gallardón, alcalde de Madrid.
During the last year the Foros ABC brought together top
personalities of the business and political world to create a
meeting point in which to discuss the latest current affairs.
Amongst others, it is necessary to highlight the presence of
José Luis Rodríguez Zapatero, the Spanish Prime Minister,
Mariano Rajoy, the leader of the opposition, Pedro Solbes,
Minister of Economy and Finance, Esperanza Aguirre,
President of the Comunidad de Madrid and Alberto Ruiz
Gallardón, Mayor of Madrid.
La presencia activa de Vocento en la cultura se hace
patente, entre otras actividades, en el patronato de la
Fundación Guggenheim, en el Museo Picasso de
Málaga y en la presencia activa en ARCO, la Feria
Internacional de Arte Contemporáneo.
The active presence of Vocento in culture is clear, amongst
other activities, from its patronage of the Fundación
Guggenheim, the Museo Picasso in Málaga and with its
active presence at ARCO, the International Contemporary
Art Fair.
El Día Vocento de la Publicidad acogió el II Escáner de la
Publicidad que supuso un punto de encuentro en el que se
dieron cita los más destacados representantes del
marketing nacional e internacional y donde se analizaron
los temas de mayor actualidad para el entorno publicitario
y su repercusión social. Vocento, como representante
español en Cannes, culminó la jornada con la entrega de
los Premios Genio y de los Leones de Cannes.
On the Día Vocento de la Publicidad the II Escáner de la
Publicidad was held, which was a meeting point for the
most distinguished representatives of national and
international marketing and where the latest themes of the
advertising sector and their social repercussion were
analyzed. Vocento, as the Spanish representative in Cannes,
concluded the events with the awarding of the Premios
Genio and the Cannes Lions awards.
El objetivo de la Fundación Vocento, presidida por
Enrique Ybarra y dirigida por el historiador Fernando García
de Cortázar, se centra en impulsar en España los valores de
la Unión Europea y en expandir y promover un mayor
debate y conocimiento de las cuestiones englobadas en el
área de las Humanidades. Tanto nacional como
regionalmente la Fundación Vocento buscar acercar a sus
medios a las demandas actuales de la sociedad.
I Aulas de Cultura. Organizadas por la Fundación
Vocento, se han convertido en eventos de referencia
con personalidades de la cultura y la sociedad. Las
Aulas de Cultura se celebran en todas las ciudades de
España donde los diarios de Vocento están presentes.
Son el escenario de debate sobre cuestiones
socioculturales de relevancia.
I Formación de periodistas. El Máster de Periodismo
de El Correo y la Universidad del País Vasco, creado en
1988, y en el que ya se han formado veinte
promociones, se ha convertido en un título de gran
The aim of Fundación Vocento, chaired by Enrique Ybarra
and directed by the historian Fernando García de Cortázar,
is to promote the values of the European Union in Spain and
to expand and encourage more debate and knowledge of
the questions included in the area of Humanities. Fundación
Vocento seeks to bring its media closer to the current
demands of society on both a national and regional level.
I Culture Workshops. Organized by Fundación Vocento,
they have become benchmark events held with
personalities from the world of culture and society. These
Workshops are held in the cities all over Spain where
Vocento’s newspapers are present. They are the scenario
for discussion on socio-cultural issues of relevance.
I Training of journalists. El Correo and la Universidad
del País Vasco Master’s Degree in Journalism, created in
1988, many journalists having graduated over the last
twenty years, has become a well-renowned title in the
world of Hispanic journalism. It is a Master benchmark in
the world of journalism, especially after being the first
Master to obtain the nature of an official university
degree. After following an intensive course on journalism,
the students carry out paid internship at a media office
during the summer months.
79
Con el premio Vocento Valores Humanos, el grupo quiere reconocer los
esfuerzos que determinadas personas o instituciones hacen por la defensa de
los derechos fundamentales.
I Premio Vocento Valores Humanos. This year, at the
11th edition of the Premio Vocento Valores Humanos,
tribute was paid to the figure of the Jesuit Enrique
Figaredo for his work in southeast Asia, caring for sociallydeprived children, who have suffered the consequences
of war and mutilations. The Jury’s Special Prize went to
Daniel Barenboim. With this award, Vocento wishes to
acknowledge the efforts made by certain individuals or
institutions for defending fundamental rights.
I Journalism Awards. Vocento supports the big prizes
of Spanish journalism. For example, the ones awarded by
ABC –Mariano de Cavia, Luca de Tena and Mingote–, by
El Correo –the Premio de Periodismo El Correo Español-El
Pueblo Vasco– and ABC Sevilla –Premio Joaquín Romero
Murube–. These awards seek the recognition of
excellence in the media world.
calidad en el mundo del periodismo hispano. Es un
Máster de referencia en el ámbito periodístico,
especialmente después de ser el primer Máster en
obtener la titulación oficial. Después de realizar un curso
intensivo sobre prácticas periodísticas, los alumnos
realizan prácticas remuneradas en un medio de
comunicación durante los meses de verano.
I Premio Vocento Valores Humanos. Este año, en la
XI edición del Premio Vocento Valores Humanos, se ha
querido reconocer la figura de Enrique Figaredo por la
labor que este jesuita ha ejercido en el sudeste asiático,
al dedicarse a los niños que han sufrido marginación,
secuelas de guerra y mutilaciones. El Premio Especial del
Jurado fue a parar a Daniel Barenboim. Con este premio,
Vocento quiere reconocer los esfuerzos que
determinadas personas o instituciones hacen por la
defensa de los derechos fundamentales.
I Philosophy Magazine. With the intention of
promoting discussion of ideas and philosophy, the
magazine El Noticiero de las Ideas, edited by Fernando
García de Cortázar, has become a prestigious publication
in the world of culture and philosophy.
I Presence in the University. Vocento carries out an
intense activity with various universities. Among these
activities we must especially highlight the Summer
Courses held at the Universidad Internacional Menéndez y
Pelayo and the Universidad de Cádiz. Likewise, the
Fundación sponsors the remarkably successful Summer
Courses held at the Universidad de Cantabria in Laredo as
well as several musical events.
I Support for Foundations. Vocento collaborates very
actively with other foundations like the Fundación
Príncipe de Asturias, Fundación Víctimas del Terrorismo,
Asociación Española de Fundaciones and Fundación
Colección ABC.
Through the Vocento Valores Humanos Award, the group wishes
to acknowledge the efforts made by different persons or institutions
with respect to defending fundamental rights.
80
I Premios de Periodismo. Vocento apoya los grandes
premios del periodismo español. Destacan los concedidos
por ABC –los Premios Mariano de Cavia, Luca de Tena y
Mingote–, El Correo –el Premio de Periodismo El Correo
Español-El Pueblo Vasco– y ABC Sevilla –Premio Joaquín
Romero Murube–. Estos premios buscan el
reconocimiento de la excelencia en el mundo de la
comunicación.
I Revista de pensamiento. Con la intención de
promover el debate de las ideas y pensamiento, la revista
El Noticiero de las Ideas dirigida por Fernando García de
Cortázar se ha convertido en una publicación de
referencia en el mundo de la cultura y el pensamiento.
I Presencia en la Universidad. Vocento desarrolla
una intensa actividad con diversas universidades. Entre
estas actividades destacan de forma especial los Cursos
de Verano de la Universidad Internacional Menéndez y
Pelayo y de la Universidad de Cádiz. Igualmente, la
Fundación patrocina con notable éxito los Cursos de
Verano de la Universidad de Cantabria en Laredo y
diferentes eventos musicales.
I Apoyo a Fundaciones. Vocento colabora de forma muy
activa con otras fundaciones como la Fundación Príncipe de
Asturias, la Fundación Víctimas del Terrorismo, la
Asociación Española de Fundaciones y la Fundación
Colección ABC.
81
Directorio
Addresses
Directorio
Addresses
VOCENTO
Juan Ignacio Luca de Tena, 7
28027 Madrid
Tel.: 91 743 81 04
Fax: 91 320 39 95
Polígono Industrial Torrelarragoiti
48170 Zamudio (Vizcaya)
Tel.: 94 452 36 35
Fax: 94 452 14 20
Presidente de Honor | Honorary Chairman. Santiago de Ybarra y Churruca
Presidente | Chairman. Diego del Alcázar Silvela
Consejero Delegado | Chief Executive Officer. José Manuel Vargas Gómez
Vicepresidente Primero | Senior Vice Chairman. José María Bergareche Busquet
Vicepresidente | Vice Chairman. Enrique Ybarra e Ybarra
Vicepresidenta | Vice Chairwoman. Catalina Luca de Tena García-Conde
Secretario del Consejo | Board Secretary. Emilio de Palacios Caro
Adjunto al Consejero Delegado | Assistant Chief Executive Officer. Juan Ignacio Mijangos Ugarte
Director General de Medios Nacionales | General Manager of National Media. Santiago Alonso Paniagua
Director General de Medios Locales | General Manager of Local Media. Iñaki Arechabaleta Torróntegui
Directora General Financiera | Chief Financial Officer. Beatriz Puente Ferreras
Director de Secretaría General | Head of General Secretary’s Office. Joaquín Mollinedo Chocano
Director Auditoría Interna | Internal Audit Manager. Enrique Marzal López
Directora de Relaciones Externas | External Relations Manager. María Vega de Seoane
Jefe de Comunicación | Communications Manager. Luisa Alli Turrillas
82
Directorio
Addresses
ABC
ABC SEVILLA
28027 Madrid
Tel.: 91 339 90 00
Fax: 91 320 92 55
www.abc.es
Albert Einstein, 10
41092 Isla de la Cartuja - Sevilla
Tel.: 95 448 86 00
Fax: 95 448 86 01
QUÉ!
EL CORREO
Orense 81 - 3º planta, puerta 1
28020 Madrid
Tel.: 91 572 62 00
Fax: 91 571 00 85
Pintor Losada, 7
48004 Bilbao
Tel.: 94 487 01 00
Fax: 94 487 01 11
www.elcorreodigital.com
EL DIARIO VASCO
EL DIARIO MONTAÑÉS
Camino de Portuetxe, 2
20018 San Sebastián
Tel.: 943 41 07 00
Fax: 943 41 08 14
www.diariovasco.com
Calle de la Prensa, s/n - La Albericia
39012 Santander
Tel.: 942 35 40 00
Fax: 942 34 10 07
www.eldiariomontanes.es
LA VERDAD
IDEAL
Camino Viejo de Monteagudo, s/n
30160 Murcia
Tel.: 968 36 91 00
Fax: 968 36 91 47
www.laverdad.es
Polígono Asegra
Huelva , 2
18210 Peligros (Granada)
Tel.: 958 80 98 09
Fax: 958 40 24 20
www.ideal.es
83
Directorio
Addresses
HOY
SUR
Carretera de Madrid-Lisboa, 22
06008 Badajoz
Tel.: 924 21 43 00
Fax: 924 20 53 20
www.hoy.es
Avenida Doctor Marañón, 48
29009 Málaga
Tel.: 95 264 96 00
Fax: 95 264 96 73
www.diariosur.es
LA RIOJA
EL NORTE DE CASTILLA
Vara del Rey, 74
26002 Logroño
Tel.: 941 27 91 07
Fax: 941 27 91 06
www.larioja.com
Polígono Argales
Vázquez de Menchaca, 10
47008 Valladolid
Tel.: 983 41 21 00
Fax: 983 41 21 32
www.nortecastilla.es
EL COMERCIO
LA VOZ DE CÁDIZ
Calle del Diario EL COMERCIO, 1
33207 Gijón
Tel.: 985 17 98 00
Fax: 985 34 09 55
www.elcomerciodigital.com
Edificio Glorieta, 4º planta
Glorieta Zona Franca s/n
11011 Cádiz
Tel.: 956 24 09 00
Fax: 956 25 32 16
www.lavozdigital.es
LAS PROVINCIAS
Polígono Industrial Vara de Quart
Calle Gremis, 1
46014 Valencia
Tel.: 96 350 22 11
Fax: 96 359 01 88
www.lasprovincias.es
84
Directorio
Addresses
CMVOCENTO
TALLER DE EDITORES
28027 Madrid
Tel.: 91 327 83 00
Fax: 91 327 83 01
www.cmvocento.com
28027 Madrid
Tel.: 91 327 83 00
Fax: 91 327 83 01
www.tallerdeeditores.com
COLPISA
PUNTO RADIO
28027 Madrid
Tel.: 91 743 81 04
Fax: 91 742 63 52
www.colpisa.com
28027 Madrid
Tel.: 91 339 95 35
Fax: 91 320 29 72
www.puntoradio.com
BOCABOCA PRODUCCIONES
GRUPO EUROPRODUCCIONES
José Isbert, 20
Ciudad de la Imagen
28223 Pozuelo de Alarcón, Madrid
Tel.: 91 566 15 00
Fax: 91 566 15 15
www.bocaboca.com
Virgilio, 5
Ciudad de la Imagen
Tel.: 91 512 98 00
Fax: 91 512 98 20
www.europroducciones.com
VIDEOMEDIA
TRIPICTURES
José Isbert, 2
Ciudad de la Imagen
Tel.: 91 512 80 00
Fax: 91 512 80 17
www.videomedia.es
Enrique Jardiel Poncela, 4
28016 Madrid
Tel.: 91 400 99 20
Fax: 91 574 90 05
www.tripictures.com
85
Directorio
Addresses
86
ONDA SEIS
URBE TV
Virgilio, 5
Ciudad de la imagen
Tel.: 91 339 90 06
Fax: 91 393 15 69
www.onda6.com
Bruc, 140, bajos
08037 Barcelona
Tel.: 93 476 68 90
Fax: 93 476 68 91
www.urbetv.cat
PUNTO TV
TELECINCO
28027 Madrid
Tel.: 91 743 81 04
Fax: 91 320 39 95
www.puntotv.es
Carretera de Irún, Km 11.700
28034 Madrid
Tel.: 91 396 63 00
www.telecinco.es
ALIANZAS Y NUEVOS NEGOCIOS, S.L.
INFOEMPLEO
28027 Madrid
Tel.: 91 327 83 00
Fax: 91 327 83 01/02/03
www.hoycinema.com
www.hoymotor.com
Paseo de la Castellana, 70. 1ª planta
28046 Madrid
Tel.: 91 782 38 40
Fax. 91 564 53 45
www.infoempleo.es
Directorio
Addresses
ADVERNET
SARENET
28027 Madrid
Tel.: 91 395 00 23
Fax: 91 741 48 62
www.advernet.es
www.ozu.es
Parque Tecnológico Edif. 103
48170 Zamudio - Vizcaya
Tel.: 94 420 94 70
Fax: 94 420 94 65
www.sarenet.es
LA TRASTIENDA DIGITAL
COMECO IMPRESIÓN. S.L
Parque Tecnológico Edif. 105
48170 Zamudio - Vizcaya
Tel.: 94 431 77 30
Fax: 94 431 87 66
www.latrastiendadigital.com
Polígono Industrial Torrelarragoiti, P6 B1
Tel.: 94 452 34 00
Fax: 94 452 01 71
BILBAO EDITORIAL PRODUCCIONES, S.L
SOCIEDAD VASCONGADA
DE PRODUCCIONES, S.L
Polígono Industrial Torrelarragoiti, P6 B1
Tel.: 94 452 34 00
Fax: 94 452 01 71
Camino de Portuetxe, 2
20018 San Sebastián
Tel.: 943 41 07 00
Fax: 943 41 08 07
87
Directorio
Addresses
88
BERALÁN
SECTOR MD
Polígono Industrial Igarategi, 58
20130 Urnieta (Guipuzcoa)
Tel.: 943 30 04 32
Fax: 943 59 01 51
Kareaga, 55
48903 Barakaldo (Vizcaya)
Tel.: 94 490 06 11
Fax: 94 490 19 99
DISTRIRUTAS
COTLAN 900
Avenida de la Industria, 22
28823 Coslada-Madrid
Tel.: 91 673 57 60
Fax: 91 672 78 33
Edificio Metroalde
Carretera Bilbao-Galdacano, 6- A-3º
48004 Bilbao
Tel.: 94 459 86 20
Fax: 94 459 88 14
GRATUITOS DE CORPORACIÓN DE MEDIOS
STEINBERG Y ASOCIADOS
Avenida San Adrián, 26
48003 Bilbao
Tel.: 94 410 46 60
Fax: 94 410 43 19
Ruiseñor 2
28221 Majadahonda - Madrid
Tel.: 91 710 27 20
Fax: 91 372 84 69
www.steinberg.net
Directorio
Addresses
FUNDACIÓN VOCENTO
Pintor Losada, 7
48004 Bilbao
Tel.: 94 487 01 00
Fax: 94 411 83 54
MÁSTER EN PERIODISMO
EL CORREO/ UPV
Pintor Losada, 7
48007 Bilbao
Tel.: 94 487 01 00
Fax: 94 473 33 20
www.masterelcorreo.com
EL NOTICIERO DE LAS IDEAS
28027 Madrid
Tel.: 91 743 81 04
Fax: 91 320 39 95
89
90
Financial Report
• Individual Financial Statements
· Financial Statements
· Appendix
· Management Report
· Audit Report
• Consolidated Financial Statements
· Financial Statements
· Appendix
· Consolidated Management Report
· Audit Report
• Corporate Governance
Individual Financial Statements
VOCENTO, S.A.
AUDITORS’ REPORT
FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2007 TOGETHER WITH DIRECTORS’ REPORT
Translation of a report originally issued in Spanish based on our work performed in accordance
with generally accepted auditing standards in Spain and of financial statements originally issued
in Spanish and prepared in accordance with generally accepted accounting principles in Spain
(see Note 23). In the event of a discrepancy, the Spanish-language version prevails.
3
VOCENTO, S.A.
BALANCE SHEETS AT 31 DECEMBER 2007
AND 2006 (NOTES 1, 2 AND 4)
ASSETS
NON-CURRENT ASSETS:
Start-up costs (Note 5)
Intangible assets, net (Note 6)
Property, plant and equipment (Note 7)Land and buildings
Plant and machinery
Other fixtures, tools and furniture
Other items of property, plant and equipment
Advances and property, plant and equipment
in the course of construction
Less - Accumulated depreciation
Long-term investments (Note 8)
Investments in Group companies
Long-term tax receivables (Note 14)
Guarantees and deposits given
Less - Allowances for investments in
Group companies
Total non-current assets
DEFERRED CHARGES (Note 9)
CURRENT ASSETS:
Inventories
Accounts receivable
Receivable from Group companies
and associates (Note 10)
Sundry accounts receivable
Tax receivables (Note 14)
Less - Allowance for bad debts
Short-term investmentsLoans to Group companies (Note 10)
Short-term treasury shares (Note 11)
Cash
Accrual accounts
Total current assets
TOTAL ASSETS
Thousands of Euros
2007
2006 (*)
263
975
423
1,227
2,373
538
2,151
869
2,373
538
2,140
841
20
(3,303)
2,648
20
(2,935)
2,977
578,400
3,089
14
445,800
4,796
10
SHAREHOLDERS' EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY (Note 11):
Share capital
Share premium
Other reserves
Profit for the year
Less- Interim dividend
Total shareholders' equity
DEFERRED INCOME
(167,717) (156,882)
413,786 293,724
417,672 298,351
1,126
1,953
48
19
56
513
5,288
5,857
37
573
13,820
(14)
14,416
82,330
9,612
543
70
98,460
517,258
57,514
9,211
1,595
181
82,936
383,240
PROVISIONS FOR CONTINGENCIES AND
CHARGES (Note 12)
NON-CURRENT LIABILITIES:
Bank borrowings (Note 15)
Payable to Group companies
Other payables (Note 13)
Total non-current liabilities
CURRENT LIABILITIES:
Bank borrowings (Note 15)
Payable to Group companies
Trade payables
Other non-trade payables
Tax payables (Note 14)
Other payables
Total current liabilities
TOTAL SHAREHOLDERS' EQUITY
AND LIABILITIES
(*) Presented for comparison purposes only.
The accompanying Notes 1 to 23 and the Appendix are an integral part of the balance sheet at 31 December 2007.
4
Thousands of Euros
2007
2006 (*)
24,994
9,516
111,664
82,168
(37,786)
190,556
24,994
9,516
88,676
78,825
(45,000)
157,011
-
150
2,203
5,546
25,146
4,525
265,825
14,523
305,494
160,934
20,891
186,350
47
134
7,816
1,926
5,204
4,586
954
8.262
19,005
423
23,836
34,183
517,258
383,240
VOCENTO, S.A.
INCOME STATEMENTS FOR THE YEARS ENDED
31 DECEMBER 2007 AND 2006 (NOTES 1, 2 AND 4)
DEBIT
EXPENSES:
Staff costs (Note 16)
Depreciation and amortisation
charge (Notes 5, 6 and 7)
Change in operating provisions
Other operating expenses
(Notes 16, 17 and 18)
Finance and similar costs
On debts to third parties and similar
costs (Notes 9 and 15)
On debts to Group companies (Note 10)
Change in investment valuation
allowances (Note 11)
II. FINANCIAL PROFIT
III. PROFIT FROM ORDINARY
ACTIVITIES (II - I)
Change in allowances for property, plant and
equipment, intangible assets and control
portfolio (Note 8)
Extraordinary expenses
Thousands of Euros
2007
2006 (*)
11,261
7,028
933
32
886
-
10,903
23,129
8,431
16,345
1,241
8,783
1,689
5,719
1,935
102,426
114,385
107,635
115,043
81,591
93,038
10,835
26
20,455
12,642
10,861
33,097
V. PROFIT BEFORE TAX (III+IV)
Income tax (Note 14)
71,232
10,936
60,428
18,397
VI. PROFIT FOR THE YEAR
82,168
78,825
CREDIT
INCOME:
Other operating income
Non-core and other current operating
income (Note 16)
I. LOSS FROM OPERATIONS
Income from equity investments
(Note 8)
Other interest and similar incomeOther interest
Extraordinary income
Prior years' income and profits
(Note 12)
IV. EXTRAORDINARY LOSS
Thousands of Euros
2007
2006 (*)
2,294
1,748
20,835
23,129
14,597
16,345
114,363
115,000
22
43
114,385
115,043
7
110
495
377
10,359
10,861
32,610
33,097
The accompanying Notes 1 to 23 and the Appendix are an integral part of the income statement for 2007.
5
VOCENTO, S.A.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2007
1. COMPANY ACTIVITIES
VOCENTO, S.A. was incorporated for an indefinite period of time on 28 June 1945. Its company objects per its bylaws are the publication, distribution
and sale of unitary publications, whether periodical or otherwise, dealing with general, cultural, sports, artistic and any other information, the printing
of such publications and the operation of printing workshops and, in general, any other activity related to the publishing and graphic arts industry; the
setting-up, use and operation of radio and television stations and any other facilities for the broadcasting, production and promotion of audiovisual
media, as well as the production, publishing and distribution of records, cassettes, recorded tapes, films, programmes and any other devices or means
of communication of any type; the ownership, acquisition, sale and performance of acts of administration and disposal by any means of shares,
securities and investments in companies engaging in any of the aforementioned activities, and, in general, in any other activity directly or indirectly
related to the aforementioned activities which is not prohibited by the legislation currently in force.
All the activities making up the aforementioned company objects can be carried on both in Spain and abroad, and may be carried on, either totally or
partially, indirectly through the ownership of shares or other equity interests in companies with identical or similar company objects (see Note 8).
The shareholders at the Annual General Meeting held on 17 March 2001 resolved to change the Company’s name from Bilbao Editorial, S.A. to Grupo
Correo de Comunicación, S.A.
On 26 November 2001, as a result of the merger by absorption of Prensa Española, S.A., the shareholders at an Extraordinary General Meeting resolved
to change the Company’s name to Grupo Correo Prensa Española, S.A. On 17 December 2002, it was resolved to transfer the assets and liabilities of
Prensa Española de Locales, S.L.U. en bloc to the sole shareholder, Grupo Correo Prensa Española, S.A., with the subsequent dissolution of the former.
Lastly, the shareholders at the Annual General Meeting held on 29 May 2003 resolved to change the Company’s name to VOCENTO, S.A. (“the
Company”).
The business activity of the Company is the control of the ownership interests held by it as the parent of a Group of companies (“the Group”) (see Note
8 and the Appendix).
The Parent’s registered office is located in Madrid, at calle Juan Ignacio Luca de Tena, nº 7. The tax domicile is located at the Polígono Industrial de
Torrelarragoiti, Barrio de San Martín, Zamudio, Vizcaya.
In view of the activity carried on by the Company, it does not have any environmental liability, expenses, assets, provisions or contingencies that might
be material with respect to its net worth, financial position or results. Therefore, no specific disclosures relating to environmental issues are included in
these notes to the financial statements.
6
2. BASIS OF PRESENTATION OF THE FINANCIAL STATEMENTS
a. Fair presentation
The accompanying financial statements, which were prepared from the Company's accounting records, are presented in accordance with the Spanish
National Chart of Accounts and, accordingly, present fairly the Company’s net worth, financial position and results of operations. The 2007 financial
statements, which were prepared by the Company’s directors, will be submitted for approval by the shareholders at the Annual General Meeting, and
it is considered that they will be approved without any changes.
The accompanying 2007 financial statements refer only to the Company taken individually. As head of the Group, VOCENTO, S.A. files consolidated
financial statements in accordance with International Financial Reporting Standards as adopted by the European Union (EU-IFRSs). According to the
consolidated financial statements prepared in conformity with EU-IFRSs, at 31 December 2007 consolidated equity amounted to EUR 628,902
thousand, profit attributable to the parent was EUR 82,168 thousand and total assets in the consolidated balance sheet amounted to EUR 1,166,895
thousand.
b. Grouping of items
"Other Non-Trade Payables – Other Payables” on the liability side of the accompanying balance sheet at 31 December 2007 is composed of various
items that were grouped together for the purposes of presentation in the balance sheet, according to the following breakdown:
Thousands of Euros
Profit sharing of the Board of Directors (Note 17)
Remuneration payable (Note 4-m)
Other payables (Note 13)
1,201
1,490
5,571
8,262
3. DISTRIBUTION OF PROFIT
The Company’s directors will propose to the shareholders at the Annual General Meeting that the profit for 2007 be distributed as follows:
Thousands of Euros
Distributable profit:
Profit for the year
82,168
Distribution of profit:
To voluntary reserves
Final dividend
Interim dividend (Note 11)
20,543
23,839
37,786
82,168
Dividends
On 25 July 2007, the Company’s Board of Directors resolved to distribute an interim dividend of EUR 37,786 thousand, which is recognised under
“Equity – Interim Dividend” on the liability side of the accompanying balance sheet at 31 December 2007.
7
On the aforementioned dates the Company was meeting the requirements of Article 194 of the Consolidated Spanish Companies Law for the
distribution of dividends because it had sufficient unrestricted reserves with respect to the unamortised expenses referred to in that article.
The provisional accounting statements prepared in accordance with legal requirements, evidencing the existence of sufficient liquidity for the
distribution of the dividends, were as follows:
Thousands of Euros
Profit before tax at 30 June 2007
Income tax provision
Distributable profit
Cash and short-term investments
Current account with Group companies
Liquidity available
46,471
3,911
50,382
98,215
105,515
203,730
At 31 December 2007 the dividend had been paid in full.
4. MEASUREMENT BASES
The principal measurement bases applied by the Company in preparing its financial statements for 2007, in accordance with the Spanish National Chart
of Accounts, were as follows:
a. Start-up costs
“Start-up Costs” in the accompanying balance sheet at 31 December 2007 includes the costs incurred in the refurbishment of properties leased by the
Company in order to increase its operating capacity and to continue performing the activities related to its company object (see Note 1).
These costs are amortised on a straight-line basis over five years, less than the term of the lease contract, and are recognised with a charge to “Depreciation
and Amortisation Charge” in the accompanying income statement. The charge in this respect in 2007 was EUR 160 thousand (see Note 5).
b. Intangible assets, net
Intangible assets, which basically include computer software, are carried at cost and amortised on a straight-line basis over four years. In 2007,
amortisation amounted to EUR 405 thousand and the period charge was recognised under “Depreciation and Amortisation Charge” in the
accompanying income statement for the year (see Note 6).
c. Property, plant and equipment
Property, plant and equipment are stated at cost.
The costs of expansion, modernisation or improvements leading to increased productivity, capacity or efficiency or to a lengthening of the useful life of
the asset are capitalised.
Period upkeep and maintenance expenses are charged to the income statement.
8
The Company depreciates its property, plant and equipment by the straight-line method at annual rates based on the following years of estimated
useful life (see Note 7):
Average Estimated Useful Life (Years)
Buildings
Plant and machinery
30
6.6
10
5
d. Long- and Short-term investments
Long-term investments, none of which are listed, are measured at the lower of cost and consolidated underlying carrying amount, adjusted by the
amount of any unrealised gains disclosed at the time of acquisition and still existing at a subsequent valuation, considering for these purposes an
effective period of ten years (see Note 8). Consequently, the Company’s financial statements do not reflect the changes that would arise from using
consolidation or equity methods, as applicable, which are broken down in Note 2-a.
Loans and long-term guarantees and deposits given are carried at the amount effectively delivered (see Note 8).
The Company records provisions for the ownership interests whose cost is higher than the underlying carrying amount disclosed in the latest
consolidated balance sheet available of the investees, calculated as indicated above.
Short-term investments are carried at the amount effectively delivered (see Note 8).
e. Treasury shares
Treasury shares are measured at the lower of cost and market (see Note 11), where market value is the lowest of the following three amounts:
• year-end market price
• average market price during the last quarter
• underlying carrying amount
The losses disclosed by the comparison of cost and market price are charged to profit or loss and the additional loss disclosed if the underlying carrying
amount is in turn lower than the market price or that arising from the comparison of the with the underlying carrying amount when the cost price is
lower than the market price, is charged to the Company’s unrestricted reserves.
Reversals of previously recorded losses as a result of subsequent valuation adjustments or disposals of treasury shares are credited to profit for the year
or to reserves, depending on where they had previously been charged.
As a result of the admission to listing of its shares, which was completed on 8 November 2006 (see Note 11), the Company acquired 11,910,127
treasury shares, with a view to launching a public offering at a price of EUR 14 per share.
On completion of the public offering and corresponding settlement, the Company held 2,224,675 shares, equivalent to 1.78% of its share capital, with
an acquisition cost of EUR 14.47 per share, which may be freely transferred. The directors have stated that the shares will be sold in the short term
provided the market conditions are favourable.
In 2007 the Company reversed EUR 401 thousand of the allowance for treasury shares. This amount relates to a provision of EUR 1,935 thousand
charged to “Change in Investment Valuation Allowances” in the accompanying income statement in respect of the additional loss on the market price
and to the recovery of EUR 2,336 thousand of the provision with a credit to “Voluntary Reserves” in the accompanying balance sheet in respect of the
increase in the underlying carrying amount (see Note 11).
9
f. Deferred charges
“Deferred Charges” in the balance sheet includes the finance costs related to certain debts incurred by the Company which are measured on the basis
of the difference between the repayment value and the face value thereof (see Note 4-i).
These costs are allocated to income during the maturity period of the related debts and in accordance with the finance plan (see Note 9), with a charge
to “Finance and Similar Costs – On Debts to Third Parties and Similar Costs” in the accompanying income statement.
g. Operating receivables and payables and non-trade payables
Operating receivables and payables are recognised at face value.
Non-trade payables are recognised at repayment value.
The Company records the necessary allowances for bad debts to cover balances which, according to their age and other matters, meet certain
requirements for them to be considered doubtful receivables.
Accounts receivable and payable are classified in the accompanying balance sheet on the basis of the maturity date, where debts maturing in 12
months or less after the balance sheet date are considered current liabilities.
h. Deferred income
“Deferred Income” in the balance sheet includes the deferred income from collection rights.
This income is recognised in the income statement during the maturity period of the related collection rights and in accordance with a finance plan,
with a credit to “Other Interest and Similar Income – Other Interest” in the income statement.
i. Provisions for pensions and similar obligations
The Company externalised all its pension obligations to employees in 2002, pursuant to Royal Decree 1588/1999, of 15 October, and no past services
remained uncovered at 31 December 2007. The obligations are as follows:
• For employees from Grupo Correo de Comunicación subject to the collective labour agreement (see Note 1), supplementing in different percentages
the retirement pension of the employees who joined the company before 1 January 1982, pursuant to Article 35 of the current collective labour
agreement. The employees entitled to this supplement may opt to receive a lump sum on retirement equal to 10 annuities of the corresponding
amount discounted at an annual rate of 5%.
The foregoing obligation is covered by insurance policies in accordance with the related actuarial studies carried out on a case-by-case basis and
using, among other assumptions, a discount rate of 5.13% and PERM/F2000P mortality tables.
• For employees not subject to the collective labour agreement, supplementing the retirement and widowhood pensions by an amount determined on
an individual basis.
These obligations are covered through defined benefit and defined contribution insurance policies, in accordance with the related actuarial studies,
performed on a case-by-case basis and using, among other assumptions, a discount rate of 4% and GRM/F - 95 mortality tables and a discount rate
of 3.11% and GRM/F – 95 mortality tables, respectively.
The mathematical provisions assigned to these obligations amount to EUR 3,894 thousand. This amount includes the related pension obligations of
EUR 957 thousand to members of the Board of Directors who are also company employees.
10
• The collective labour agreement also establishes the obligation to pay certain long-service bonuses to employees on completion of 20, 30 and 40
years of service at the Company. To cover the liability accrued in this respect at 31 December 2007 the Company recorded a provision of
approximately EUR 94 thousand under “Provisions for Contingencies and Charges” on the liability side of the accompanying balance sheet at that
date (see Note 12).
• The Company also had obligations to former employees from Prensa Española, S.A. (see Note 1) pursuant to the collective labour agreements in force
on their retirement, whose terms have been maintained unchanged. These obligations were secured in 2000 by a group insurance policy with a
prestigious insurance company where Prensa Española, S.A. was the policyholder and the former employees the beneficiaries. The single premium of
this policy amounted to approximately EUR 36,770 thousand and the Company decided to finance it in ten annual instalments, as permitted by
Article 36 of the Regulations on the Instrumentation of Pension Obligations to Employees and Beneficiaries, as follows:
· Constant annual instalments of approximately EUR 4,767 thousand each, including the related deferral interest (see Notes 9 and 13).
· Financial surcharge for deferral, calculated using the discount rate used to calculate the mathematical provisions.
· The long-term portion of the total payment obligations to the insurance company, including financing interest, are included in the
accompanying balance sheet under ”Non-Current Liabilities – Other Payables” and the short-term portion is recorded under “Current Liabilities
– Other Non-Trade Payables” (see Note 13). Unincurred interest is included under “Deferred Charges” in the accompanying balance sheet (see
Notes 4-f and 9).
j. Other provisions for contingencies and charges
The policy of VOCENTO, S.A. is to record provisions for contingencies and charges in order to cover probable or certain and quantifiable liabilities
arising from litigation in progress, outstanding indemnity payments, obligations or expenses, collateral and other similar guarantees provided by the
Company. The Company recorded a provision in this respect of EUR 1,744 thousand under “Provisions for Contingencies and Charges” on the liability
side of the accompanying balance sheet (see Note 12).
k. Income tax
Since 1997, the Company has filed consolidated tax returns with certain Group companies specified in the Appendix, which entails the joint calculation
of the taxable profit of the Group and the tax credits and tax relief (see Note 14).
The expense or revenue for income tax is calculated on the basis of the accounting profit before tax, increased or decreased, as appropriate, by the
permanent differences from taxable profit, which are taken to be the differences between profit before tax and taxable profit that do not reverse in
subsequent periods. The Company capitalises deferred tax assets arising from timing differences only when they will be recovered within ten years and
recognises, if any, the deferred tax liabilities arising from such timing differences.
Tax credits to avoid double taxation, tax incentives and tax relief on income tax applicable in the income tax return are capitalised when they arise,
provided they will be recovered within ten years.
l. Revenue and expense recognition
Revenue and expenses are recognised on an accrual basis, i.e. when the actual flow of the related goods and services occurs, regardless of when the
resulting monetary or financial flow arises.
However, in accordance with the accounting principle of prudence, the Company only recognises realised revenue at year-end, whereas foreseeable
contingencies and losses, including possible losses, are recognised as soon as they become known.
Dividends from equity investments are recognised on an accrual basis when the related managing body of the investee resolves to distribute it (see Note 8).
11
m. Termination benefits
Under current labour legislation, the Company is required to pay termination benefits to employees terminated under certain conditions.
In 2007, VOCENTO recognised termination benefits of EUR 3,985 thousand with a charge to “Staff Costs” (see Note 16) in the accompanying 2007
income statement, which included, inter alia, the indemnity agreed with the former CEO (paid in 2007 - see Note 17).
n. Share-based payment
On 5 September 2006, the shareholders at the Annual General Meeting resolved to approve an incentive plan, tied to the value of VOCENTO’s shares,
targeted at VOCENTO’s executive directors, senior executives and executives, who total a maximum of 66. The plan consists of the establishment of a
single variable remuneration payment in cash which is tied to the performance of the share price over a period of three years from the date on which
the Company’s shares were admitted to listing and conditional upon the achievement of a given increase in the Group’s EBITDA, with a cash amount
corresponding to each management level.
The amount of the variable remuneration will be equal to the result of multiplying the number of reference shares vested to the executive by the
positive difference between the share flotation price and the share price three years later, adjusted by a factor which depends on the degree to which
the EBITDA increase target is met. Although the initial maximum number of reference shares was 1,230,000, the maximum is currently 1,040,000 as a
result of the number of retiring executives (see Note 4-m).
The Company accrues for these future payments on the basis of the measurement of the plan at 31 December each year, as a result of which EUR 316
thousand were charged to “Staff Costs” in the accompanying income statement for 2007 (see Note 16).
The Black-Scholes valuation method was used to measure the plan and the main assumptions used were as follows:
Principal Assumptions
31 December 2007
Plan exercise price
Price at quarterly closing
Risk-free interest rate
Volatility
Estimated dividend rate
Staff turnover
Probability of meeting the EBITDA target
EUR 15.00
EUR 13.60
4.05%
24.00%
4.74%
3.00%
100.00%
At 31 December 2007, the Company maintained a provision of EUR 365 thousand for the liability accrued in this connection (see Note 12).
5. START-UP COSTS
The changes in “Start-Up Costs” in 2007 were as follows:
Thousands of Euros
12
Balance at 31/12/06
Amortisation
Balance at 31/12/07
Start-up costs
423
(160)
263
Total
423
(160)
263
6. INTANGIBLE ASSETS, NET
The changes in “Intangible Assets, Net” in 2007 were as follows:
Thousands of Euros
Balance at 31/12/06
Additions/ (Charge for the Year)
Balance at 31/12/07
1,610
27
153
-
1,763
27
1,637
153
1,790
(410)
(405)
(815)
(410)
1,227
(405)
(252)
(815)
975
Cost:
Computer software
Trademarks
Total cost
Accumulated amortisation:
Computer software
Total accumulated amortisation
Total, net
The additions relate to certain management software purchased by the Company in 2007.
At 31 December 2007, the cost and accumulated amortisation of the fully amortised intangible assets in use amounted to EUR 48 thousand.
7. PROPERTY, PLANT AND EQUIPMENT
The changes in 2007 in property, plant and equipment accounts and in the related accumulated depreciation were as follows:
Thousands of Euros
Balance at 31/12/06
Cost:
Land and buildings
Plant and machinery
Other items of property, plant and equipmentTransport equipment
Computer hardware
Advances and property, plant and equipment
in the course of construction
Total cost
Accumulated depreciation:
Buildings
Plant and machinery
Transport equipment
Computer hardware
Total accumulated depreciation
Total, net
Additions/ (Charge for the Year)
Balance at 31/12/07
2,373
538
2,140
11
2,373
538
2,151
427
414
17
11
444
425
20
5,912
39
20
5,951
(667)
(532)
(1,169)
(71)
(1)
(208)
(738)
(533)
(1,377)
(335)
(232)
(2,935)
2,977
(23)
(65)
(368)
(329)
(358)
(297)
(3,303)
2,648
13
The building in Zamudio in which the Company’s registered office is situated, whose cost is recorded under ”Property, Plant and Equipment – Land and
Buildings”, was built on land owned by Bilbao Editorial Producciones, S.L.U. (see Appendix) pursuant to a surface rights agreement in exchange for a
consideration that can be reviewed annually. This consideration amounted to EUR 107 thousand in 2007 and the term of the agreement is 99 years
from 1 June 1998, the date on which the building was delivered. On termination of the agreement, the buildings will become the property of Bilbao
Editorial Producciones, S.L.U. for no consideration. At 31 December 2007, the carrying amount of this item of property, plant and equipment was EUR
1,635 thousand.
At 31 December 2007, the cost and accumulated depreciation of the fully depreciated items of property, plant and equipment in use amounted to EUR
1,103 thousand.
At 31 December 2007, the Company’s property, plant and equipment were adequately covered by the related insurance policies.
8. LONG-TERM INVESTMENTS
The detail of this heading on the asset side of the balance sheet at 31 December 2007 and of the changes therein is as follows:
Thousands of Euros
Balance
at 31/12/06
(Note 10 and Appendix)
Long-term tax receivables (Note 14)
Long-term guarantees and deposits given
Total cost
Less- Allowances for investments
in Group companies
Additions/
(Charge for the Year)
Disposals
Transfer
to Short Term
Balance
at 31/12/07
445,800
4,796
10
450,606
132,600
4
132,604
(677)
(677)
(1,030)
(1,030)
578,400
3,089
14
581,503
(156,882)
293,724
(10,835)
121,769
(677)
(1,030)
(167,717)
413,786
The main additions in 2007 were as follows:
• In December 2007, the Company contributed EUR 600 thousand to offset losses at Corporación de Medios de Nuevas Tecnologías, S.L.U.
• In August 2007, the Company acquired all the shares of Factoría de Información, S.A. (publisher of the free newspaper “Qué!”) for EUR 132
million, which gave rise to goodwill of approximately EUR 119 million. The Company’s directors consider that the estimated future cash flows,
calculated on the basis of assumptions that include discount rates before tax, growth rates and the expected changes in the sale price and costs,
assure the recoverability of the goodwill.
14
The detail of the most significant investments in Group companies and associates at 31 December 2007 can be summarised as follows (see Appendix):
Thousands of Euros
Carrying
Amount
Group companies (Note 10 and Appendix)
Corporación de Medios Regionales, S.L.U. (1)
56,123
Corporación de Medios Internacionales
de Prensa, S.A.U. (1)
58,303
Corporación de Medios de Nuevas
Tecnologías, S.L.U. (1)
2,522
Corporación de Nuevos Medios
Audiovisuales, S.L.U. (2)
40,778
Corporación de Medios de Comunicación, S.L.U. (1) 47,128
Diario ABC, S.L. (1)
32,816
Corporación de Nuevos Medios Digitales, S.L.U. (2)
49,523
Factoría de Información, S.A. (2)
124,190
411,383
Profit (Loss)
for 2007 (*)
Dividends Received by
VOCENTO, S.A. in 2007
(Notes 10 and 14)
Share
Capital (*)
Reserves (*)
27,769
67,040
44,048
(32,000)
60
32,141
26,285
-
555
1,668
(1,009)
-
40,740
10,000
6,100
1,500
13,300
100,024
105,680
44,636
38,500
65,421
5,298
360,384
27,006
706
(12,485)
17,452
2,039
104,042
(76,363)
(114,363)
(*) This information refers to the individual unconsolidated financial statements of the respective companies at 31 December 2007.
(1) Audited by Deloitte.
(2) Audited by other auditors.
9. DEFERRED CHARGES
The detail of “Deferred Charges” in the 2007 balance sheet and of the charges therein is as follows (see Notes 4-f, 4-i and 13):
Thousands of Euros
Balance at 31/12/06
Finance costs-Group insurance
Total
Allocation to Profit/Loss
1,953
1,953
(827)
(827)
Balance at 31/12/07
1,126
1,126
The breakdown of the finance costs relating to the group insurance policy at 31 December 2007, on the basis of the settlement or payment date, is as
follows:
Year of Payment
2008
2009
2010
Thousands of Euros
610
379
137
1,126
15
10. BALANCES WITH GROUP COMPANIES AND ASSOCIATES
The detail of the Company’s balances with Group companies and associates at 31 December 2007 is as follows (see Appendix):
Thousands of Euros
Group companies
Corporación de Nuevos Medios Audiovisuales, S.L.U.
Diario El Correo, S.A.U.
Bilbao Editorial Producciones, S.L.U.
CM Norte, S.L.U.
Sociedad Vascongada de Publicaciones, S.A.
Sociedad Vascongada de Producciones, S.L.U.
Sarenet, S.A.
Distribuciones Comecosa, S.A.U.
Comeresa País Vasco, S.L.U.
Servicios Redaccionales Bilbainos, S.L.U.
Corporación de Medios Regionales, S.L.U.
Corporación de Medios de Nuevas Tecnologías, S.L.U.
Corporación de Medios Radiofónicos Digitales, S.A.
Taller de Editores, S.A.
Canal Bilbovisión, S.L.
Radio El Correo, S.L.U.
El Correo Digital, S.L.U.
VOCENTO Media Trader, S.L.U.
Sector MD, S.L.
Diario ABC, S.L.
Radio Tele Basconia, S.A.
Corporación de Medios de Comunicación, S.L.U.
Álava Televisión, S.L.
Viapolis, S.L.U.
Veralia, Corporación de Productoras de Cine y Televisión, S.L.
Comercial Multimedia VOCENTO, S.A.U.
Comeco Impresión, S.L.U.
La Trastienda Digital S.A.U.
Sdad. Gestora de Televisión Punto TV, S.L.U.
ABC Sevilla, S.L.U.
Autocasión Hoy, S.A.
IDD Publicidad, S.L.
Associates
Víctor Steinberg y Asociados, S.L.
Receivables
Short-Term Investments
(Notes 8 and 14)
Short-Term
Payables
28
9
1
5
13
-
35,731
8,986
728
7
4,503
43
726
577
427
31
30,370
61
16
6
118
-
2
10
855
92
64
163
5,954
6
127
5
265,825
-
56
82,330
126
7,816
265,825
136
1
225
1
49
Long-Term
Payables
-
The short-term accounts payable to Group companies and associates and the amounts included under “Short-Term Investments” in the accompanying
balance sheet at 31 December 2007 were disclosed basically as a result of paying income tax under the consolidated tax regime on the amounts
allocated by the Parent, VOCENTO, S.A., to its subsidiaries (see Note 14). These amounts include the unused tax credits of the various companies, which
were recorded under “Accounts Receivable - Tax Receivables” in their respective balance sheets.
16
In 2007 the Company received dividends of EUR 38,000 thousand and EUR 76,363 thousand from Corporación de Medios Regionales, S.L.U. and
Corporación de Nuevos Medios Audiovisuales, S.L.U., respectively (see Note 8), of which EUR 27,000 thousand and EUR 27,585 thousand, respectively,
remained unpaid at 31 December 2007 and were recognised under “Short-Term Investments” on the asset side of the accompanying balance sheet at
31 December 2007.
“Long-Term Payables” includes the current account balance with Corporación de Medios Regionales, S.L.U. The Company also holds a current account
with Corporación de Nuevos Medios Audiovisuales, S.L.U., which had not been drawn down at 31 December 2007.
The related current account contracts are renewed automatically for six-month periods unless the parties expressly waive the contract. The Company’s
directors consider that this balance will not be called in the short term. The accounts receivable generate a return calculated on the basis of average
three-month EURIBOR + 0.3 points, whereas accounts payable give rise to finance costs of average three-month EURIBOR + 0.6 points. In 2007 finance
costs totalling EUR 8,783 thousand were recognised under “Finance Costs – On Debts to Group Companies” in the accompanying income statement
for 2007.
11. SHAREHOLDERS’ EQUITY
The changes in “Shareholders’ Equity” in the accompanying 2007 balance sheet were as follows:
Thousands of Euros
Balance at 31 December 2006
Distribution of 2006 profit
Interim dividend
Final dividend
Voluntary reserves
Interim dividend (Note 3)
Allowance for treasury shares (Note 4-e)
Change in balance of treasury shares (Note 4-e)
2007 profit
Share
Capital
Share
Premium
Legal
Reserve
24,994
9,516
4,999
24,994
9,516
4,999
Reserve for
Treasury Shares
(Note 4-e)
Voluntary
Reserve
Profit for
the Year
Interim
Dividend
9,211
74,466
78,825
(45,000)
401
9,612
20,652
2,336
(401)
97,053
(45,000)
(13,173)
(20,652)
82,168
82,168
45,000
(37,786)
(37,786)
Share capital
At 31 December 2007, the share capital of VOCENTO, S.A. amounted to EUR 24,994 thousand and consisted of 124,970,306 fully subscribed and paid
book-entry shares of EUR 0.2 par value each.
At 31 December 2007, the only shareholder with an ownership interest of 10% or more was Mezouna, S.A., which owns 10.38% of the share capital.
The Parent has been listed on the Bilbao, Madrid, Barcelona and Valencia Stock Exchanges and on the Spanish computerised trading system
(continuous market) since 8 November 2006.
17
Share premium
The Consolidated Spanish Companies Law expressly permits the use of the share premium account balance to increase capital and does not establish
any specific restrictions as to its use.
Legal reserve
Under the Consolidated Spanish Companies Law, 10% of net profit for each year must be transferred to the legal reserve until the balance of this
reserve reaches at least 20% of the share capital. The Company had already exceeded this threshold at 31 December 2007. The legal reserve can be
used to increase capital provided that the remaining reserve balance does not fall below 10% of the increased share capital amount. Otherwise, until
the legal reserve exceeds 20% of share capital, it can only be used to offset losses, provided that sufficient other reserves are not available for this
purpose.
Reserve for treasury shares
The detail of the reserve for treasury shares and of the changes therein in 2007 is as follows (see Note 4-e):
Thousands of Euros
Allowance for decline in value
9,211
401
9,612
Number of Shares
2,224,675
2,224,675
Pursuant to the Consolidated Companies Law, the Company keeps a restricted reserve for an amount equal to the net value of the treasury shares held
by it. In any evaluation of the Company’s equity at 31 December 2007, the balance of treasury shares under “Short-Term Treasury Shares” on the asset
side of the accompanying balance sheet should be deducted from the Company’s equity figure at that date.
12. PROVISIONS FOR CONTINGENCIES AND CHARGES
The detail of “Provisions for Contingencies and Charges” on the liability side of the accompanying balance sheet at 31 December 2007 and of the
changes therein in 2007 is as follows:
Thousands of Euros
Provisions for Pensions
and Similar Obligations
(Note 4-i)
Amount used (Note 17)
Changes in provisions charged (credited)
to profit or loss (Note 1, 4-n and 16)
Provisions for
Share-Based Payments
(Note 4-n)
Other Provisions
(Note 4-j)
Total
3,753
(3,325)
49
-
1,744
-
5,546
(3,325)
(334)
94
316
365
1,744
(18)
2,203
The amount used relates basically to the annuity income paid to the former Chairman as result of the admission to listing of the Company’s shares (see
Note 17).
The difference between the amount provisioned and that finally paid (EUR 334 thousand) was recognised under “Prior Years’ Income and Profits” in
the accompanying income statement for 2007.
18
13. OTHER PAYABLES
The detail of ”Non-Current Liabilities – Other Payables” in the accompanying balance sheet at 31 December 2007 and “Other Payables” in the
breakdown in Note 2-b is as follows:
Thousands of Euros
Long Term
Group insurance (Note 4-i)
Termination benefits payable (Note 4-m)
Development of technology projects
Long-term tax payables (Note 14)
Other
Short Term (Note 2-b)
Total
9,534
4,989
-
4,767
22
29
753
14,301
22
29
4,989
753
14,523
5,571
20,094
Group insurance
On 10 May 2000, Prensa Española, S.A. (see Note 1) reached an agreement with its employees’ representatives whereby a group insurance policy was
taken out in order to externalise the company’s pension obligations to its former employees. Thus, the Company’s only current and future liability is
payment of the single premium, amounting to EUR 36,770 thousand. Given that Prensa Española, S.A. deferred payment thereof in ten annual
instalments (the first of which was paid on 2 January 2001), the annual payments amount to EUR 4,767 thousand and include the implicit interest on
the deferral. These amounts are recognised under “Deferred Charges” in the accompanying balance sheet at 31 December 2007 (see Notes 4-i and 9).
Development of technology projects
The Company has received interest-free loans from the Ministry of Industry, Trade and Tourism amounting to EUR 29 thousand and maturing in 2008
as aid for the development of technology projects.
14. TAX MATTERS
VOCENTO, S.A. and certain of its subsidiaries subject to Vizcaya corporation tax legislation pay income tax under the Special Consolidated Tax Regime,
with VOCENTO, S.A. as the Parent of the Group (see Appendix). The notification of the composition of the Tax Group for 2007 was submitted to the
Vizcaya Provincial Department of Economy and Finance on 30 December 2007.
The special regime provided for in Chapter X, Title VIII of the Provincial Corporation Tax Law 3/1996, of 26 June, and Chapter VIII, Title VIII of the
Spanish Corporation Tax Law 43/1995, of 27 December, was applied to the merger of VOCENTO, S.A. (then Grupo Correo de Comunicación, S.A.) and
Prensa Española, S.A. in 2001. The disclosures on the merger transaction required under the aforementioned laws are detailed in the notes to the
financial statements for the year ended 31 December 2001. The transfer en bloc in 2002 of the assets and liabilities of Prensa Española de Locales,
S.L.U. was also carried out under this special regime (see Note 1).
19
At 31 December 2007, the items “Tax Receivables” and “Tax Payables” under current and non-current assets and liabilities in the accompanying
balance sheet were as follows:
Concepto
VAT
Income tax
Income tax assets
Personal income tax withholdings
Deferred tax liabilities
Other
Assets
Current
1,753
1,586
1,949
5,288
Thousands of Euros
Liabilities
Assets
Current
Non-Current
23
3,089
907
24
954
3,089
Liabilities
Non-Current (Note 13)
4,989
4,989
The detail of the income tax credits and deferred tax assets and liabilities and of the changes therein is as follows:
Balance at
31/12/06
Long-term income tax
assets (Note 8)
Deferred tax assets
Total long term
Short-term income tax assets
Tax loss carryforwards
Deferred tax assets
Other unused tax credits
Total short term
Total ASSETS
Long-term deferred tax liabilities (Note 13)
Total LIABILITIES
20
Additions
Thousands of Euros
Adjustment
Amounts
of Tax Rate
Used
Transfers
Balance at
31/12/07
4,796
4,796
-
(677)
(677)
-
(1,030)
(1,030)
3,089
3,089
10,126
1,271
192
11,589
16,385
(6,561)
(6,561)
541
114
655
655
(4,291)
(4,291)
(1,095)
(169)
(1,264)
(1,941)
1,204
1,204
(9,031)
(1,030)
(10,061)
(10,061)
4,659
4,659
1,030
1,030
-
1,643
306
1,949
5,038
(4,989)
(4,989)
The income tax expense and income tax receivable were calculated as follows:
Thousands of Euros
Accounting profit (before tax) – Profit
Permanent differences:
· Elimination of double tax asset for capitalised tax losses (Note 8)
- Portfolio allowances re Factoría de Información, S.A.
- Portfolio allowances re Corporación de Medios Internacionales de Press, S.A.U.
- Portfolio allowances re Diario ABC, S.L.
· Portfolio allowances re tax group companies (Note 8)
· Other non-deductible expenses
· Elimination of Tax Group dividends (Note 8)
Timing differences:
- Change in allowance for treasury shares (Note 4-e)
Prior years’ timing differences:
· Group pension insurance policy (Notes 9 and 13)
· Elimination of double tax asset for capitalised tax losses (Note 8)
- Portfolio allowance re Factoría de Información, S.A.
- Portfolio allowance re Corporación de Medios Internacionales de Press, S.A.U.
- Diario ABC, S.L.
· Annuity income to the Chairman (Note 12)
Gross taxable profit
Offset of Group taxable profit
Net taxable profit
71,232
2,845
(16,640)
12,484
1,572
680
(114,363)
1,935
(3,678)
(2,845)
16,640
(12,484)
(3,500)
(46,122)
(23,799)
(69,921)
“Elimination of Double Tax Asset for Capitalised Tax Losses” relates to the accounting elimination of tax income arising from the provisions to the
portfolio allowances relating to Group companies that capitalised tax loss carryforwards, where these amounts relate to the provisions recognised as a
result of the losses of Diario ABC, S.L. and Factoría de Información, S.A. in 2007, and to the reversal made by Corporación de Medios Internacionales
de Prensa, S.A. due to the sale of its investee CIMECO, S.A.
“Other Non-Deductible Expenses” relates to the estimated insurance premium payable for executives and the contributions to pension plans for certain
employees not subject to a collective labour agreement (see Note 4-i). This expense will be deductible on payment of the aforementioned pensions.
“Offset of Group Taxable Profit” arises from tax losses which were offset by the Company. The Company has no tax losses available for offset in the
future.
In addition, as head of the Tax Group, the Company has an income tax receivable amounting to EUR 20,051 thousand at 31 December 2007 (see Note
10) in connection with the various Tax Group companies’ taxes.
In accordance with the Vizcaya Provincial Law in force in 2007 the Company is liable for income tax under Vizcaya Regulation 3/1996, of 26 June,
amended by Legislative Decree 1/2005, of 30 December, which established a tax rate of 32.6%, effective for years commencing on or after 1 January
2006, and by Vizcaya Regulation 6/2007, of 27 March, which reduced the tax rate to 28%, effective for years commencing on or after 1 January 2007.
Both amendments remain in force although various appeals have been filed on which a decision has yet to be handed down.
The Company’s directors (and, if applicable, its tax advisers) consider that the final outcome of the various court proceedings and the appeals filed in
connection with income tax will not have a significant impact on the financial statements taken as a whole and, therefore, the tax for 2007 and for the
years open to inspection was calculated in accordance with the Vizcaya laws in force at each reporting date.
Consequently, the Company adjusted its income tax assets and deferred tax assets in 2007, which gave rise to a negative adjustment of EUR 737
thousand under “Income Tax” in the accompanying income statement for 2007.
21
The income tax expense for 2007 also includes approximately EUR 140 thousand arising from the difference between the amount estimated at 2006
year-end and the definitive income tax return filed and from additional deferred tax of approximately EUR 658 thousand.
At 31 December 2007, the last three years were open for review by the tax authorities for all the taxes applicable to VOCENTO, S.A.
The varying interpretations that the tax and judicial authorities may make of the tax legislation applied by VOCENTO, S.A. could give rise to contingent
tax liabilities for the years open for review which cannot be objectively quantified. However, the Company's directors and legal advisers consider that
such contingent liabilities are very unlikely to become actual liabilities and, in any event, they would not have a material effect on the financial
statements of VOCENTO, S.A.
15. BANK BORROWINGS
The breakdown of the balances of “Non-Current Liabilities – Bank Borrowings" and “Current Liabilities - Bank Borrowings" in the accompanying
balance sheet at 31 December 2007 is as follows:
Thousands of Euros
Balance Drawn Down at 31/12/07
Maturity
Interest Rate
Limit Granted
Long Term
Short Term
EURIBOR+spread (*)
EURIBOR+spread (*)
EURIBOR+spread (*)
EURIBOR+spread (*)
EURIBOR+spread (*)
30,000
14,500
11,667
21,000
10,000
8,701
16,445
-
47
-
25,146
47
Credit facilities
Banco Bilbao Vizcaya Argentaria, S.A.
Bilbao Bizkaia Kutxa
Banco Guipuzcoano, S.A.
Caja Madrid
Banco Español de Crédito, S.A.
2011
2011
2011
2009
2010
(*) The spread on the credit facilities ranges from 0.30% to 0.55%
The credit facilities in the foregoing table were guaranteed personally by the Company and are shared by the Company and Corporación de Medios
Regionales, S.L.U. and Corporación de Nuevos Medios Audiovisuales, S.L.U. (see Note 8 and Appendix), with a combined limit at each bank. The
individual limit assigned to the Company is, initially, the amount included in the foregoing table although the aforementioned companies may opt to
modify the limits set for each one by mutual agreement and with the approval of each bank.
In addition, the Company has other credit facilities similar to those described above with a limit at 31 December 2007 of approximately EUR 46,667
thousand.
22
16. INCOME AND EXPENSES
Staff costs
The breakdown of “Staff Costs” in the accompanying income statement for 2007 is as follows:
Thousands of Euros
Wages and salaries
Termination benefits (Note 4-m)
Employee benefit costs
Share-based payments (Notes 1, 4-n and 12)
Other employee benefit costs
5,925
3,985
227
316
808
11,261
The average number of employees in 2007, by professional category, was as follows:
Average Number of Employees
Men
Executives
Employees
12
12
Women
1
9
10
Transactions with Group companies
The most significant transactions with Group companies in 2007, in addition to those described in Notes 8 and 10, consisted basically of monthly
billings to the newspapers that form part of the Group (see Appendix) for general services rendered. These billings amounted to EUR 1,036 thousand
and are recognised under “Other Operating Income – Non-Core and Other Current Operating Income” in the accompanying income statement for the
year ended 31 December 2007.
17. REMUNERATION AND OTHER DISCLOSURES CONCERNING THE DIRECTORS
The remuneration, including salaries and other expenses, earned in all connections by the members of the Board of Directors in 2007 amounted to
approximately EUR 9,408 thousand, of which approximately EUR 1,201 thousand (recognised under “Other Operating Expenses” in the accompanying
income statement for 2007) relate to the directors’ share in profit for the year (see Note 2-b).
Until his resignation on 27 January 2008 (see Note 21 "Events After the Balance Sheet Date”), the relationship between the Chief Executive Officer
Belarmino García and VOCENTO, S.A. was regulated by a senior management contract with a term of ten years, establishing fixed and variable annual
remuneration of EUR 680,004 and EUR 320,000, respectively.
In addition, it provided for the possibility of receiving variable remuneration deferred until the third year in the event of achieving certain targets for the
share price and the Group’s EBITDA. The CEO was also entitled to receive certain payments in kind (life, medical, third party and personal liability
insurance and a company car) in addition to the aforementioned monetary remuneration.
The clauses of the contract provided for a period of advance notice for the termination thereof and an indemnity of 3.5 years’ total remuneration or
three years’ fixed remuneration plus 55% of the variable remuneration of the last year on the basis of the time of termination of the contract. It also
included a two-year non-competition clause, amounting to a year’s remuneration.
23
The breakdown of the individual remuneration of the Board of Directors in 2007 is as follows:
Thousands of Euros
Contributions
Attendance Fees
Board of
Directors
Committees
Remuneration of
to Pension
Agreed
Other
Directors for Senior
Profit-Sharing
Plans and
Termination
Remuneration
Executive Functions
Payments
Life Insurance
Benefits
of Directors
Fixed
Variable
Total
DIRECTORS AT 31 DECEMBER 2007
24
Santiago de Ybarra y Churruca
Alejandro Echevarría Busquet
José María Bergareche Busquet
Enrique Ybarra e Ybarra
Mezouna (Ignacio Ybarra Aznar)
Santigo Bergareche Busquet
Víctor Urrutia y Vallejo
Claudio Aguirre Pemán
Catalina Luca de Tena García-Conde
Soledad Luca de Tena García-Conde
Álvaro Ybarra Zubiria
María del Carmen Careaga
Diego del Alcazar Silvela
ATLANPRESSE, S.A.R.L.
Carlos Castellanos Borrego
Belarmino García Fernández
22
20
23
23
23
23
16
22
23
23
23
16
25
22
20
20
10
33
10
10
30
7
33
11
8
22
22
15
-
453
48
48
48
48
48
48
32
48
48
48
33
185
33
33
-
201
-
3,167
3,000
-
37
-
617
331
500
-
3,652
101
4,399
81
101
78
97
65
79
130
93
49
225
55
53
351
Total directors at 31 December 2007
344
211
1,201
201
6,167
37
948
500
9,609
Pursuant to Article 127 ter.4 of the Spanish Companies Law, introduced by Law 26/2003, of 17 July, which amends Securities Market Law 24/1988, of
28 July, and the Consolidated Companies Law, in order to reinforce the transparency of listed corporations, following is a detail of the companies
engaging in an activity that is identical, similar or complementary to the activity that constitutes the company object of VOCENTO, S.A. in which the
members of the Board of Directors own equity interests and of the functions, if any, that they discharge at those companies.
Owner
Investee
Sociedad Vascongada
de Publicaciones, S.A.
Diario ABC, S.L.
Sociedad Vascongada
Sociedad Vascongada
Diario ABC, S.L.
Gestevisión Telecinco, S.A.
Merca Red, S.A.
Santiago Bergareche Busquet
Sociedad Vascongada
Enrique Ybarra Ybarra
VOCENTO, S.A.
Diario ABC, S.L.
Sociedad Vascongada
de Publicaciones,S.A.
Ediciones Luca de Tena, S.L.
Diario ABC, S.L.
Álvaro de Ybarra Zubiria
Sociedad Vascongada
Atlanpresse S.A.R.L.
S.E.P.L.
Dordogne Libre
Les Editions du Bassin
Les Editions de la Semaine
Surf Session
Société de Gratuit D’Information
SNEM
Société du Journal Midi Libre
Carlos Castellano Borrego
Recollects Grupo de Comunicación, S.A.
Carlos Castellano Borrego
Pearson
Mezouna, S.L.
Sociedad Vascongada
Activity
Ownership Interest
Functions
Newspaper publishing
0.7163%
Chairman
0.0002%
0.2780%
Director
-
0.1072%
Director
Television
Publications
0.0002%
0.005%
0.74%
0.2042%
Director
Chairman
-
Media
6.2804%
0.0002%
Deputy Chairman
Chairman
Book publishing
0.0235%
95%
0.0002%
0.0135%
Sole Director
Deputy Chairman
-
Press
Press
Press
Press
Press
Press
Press
Press
Media
Media
99.99%
99.98%
99.00%
100.00%
100.00%
100.00%
5%
47.4%
0.0023%
0.0055%
0.21%
-
25
Also, as provided for by the aforementioned Law, set forth below are the activities additional to those stated in the foregoing table performed by the
directors, as independent professionals or as employees that are identical, similar or complementary to the activity that constitutes the company object
of VOCENTO, S.A.:
Name
Company through
which the Activity
is Performed
Positions or
Functions at the
Company Concerned
Independent professional
-
Chief Executive Officer
Director Acting Severally
-
Diario ABC, S.L.
Media
Comeresa Press, S.L.U.
Media
Corporación de Media, S.L.U
Media
Media
Tecnologías, S.L.U.
Media
de Prensa, S.A.U.
Media
Audiovisuales, S.L.U.
Media
Corporación de Nuevos Medios Digitales, S.L.U.
Media
Desarrollo de Clasificados, S.L.U.
Media
Boca Boca Producciones, S.L.
Production
Pantalla Digital, S.L.U.
Television
Sociedad Gestora de Television NET TV, S.A.
Television
-
-
Director
Director
Director
Corporación de Medios de Murcia, S.A.
El Norte de Castilla, S.A.
-
Chairman
Director
Director
Diario ABC, S.L.
Gestivisión Telecinco, S.A.
Radio Publi, S.L.U.
Television
Radio
-
Director
Director
Director
Chairman
-
Director
Director
News agency
Advertising sales
-
Chairman
Chairman
-
Director
Editorial Cantabria, S.A.
Agencia de Television Latinoamericana de
Servicios y Noticias España, S.A.
Publiespaña, S.A.
26
Activity Performed
Type of
Arrangement
Activity Performed
Type of
Arrangement
Company through
which the Activity
is Performed
Positions or
Functions at the
Company Concerned
Grupo Europroducciones, S.A.
Sociedad Gestora de Television Onda 6, S.A.U.
Radio Publi, S.L.
Diario el Correo, S.A.U.
Corporación de Medios de Cádiz, S.L.U.
Estudios de Política Exterior, S.A.
Federico Doménech, S.A.
ABC de Sevilla, S.L.
Audiovisual production
Television
Radio
Magazine publishing
-
Director
Director
Director
Director
Director
Director
Director
Director
ABC de Sevilla, S.L.U.
-
Chairman
-
Director
Director
Corporación de Medios de Andalucía, S.A.
El Comercio, S.A.
Nueva Rioja, S.A.
-
Director
Director
Director
Director
Director
Director
-
Director
ONO, S.A.
Telecommunications
-
Director
Heléne Lemoine
Groupe Sud Ouest, S.A.
SAPESO, S.A.
Atlan Presse, S.A.R.L.
Atlan Presse, S.A.R.L.
Director
Director
Ignacio Ybarra Aznar
Press Malagueña, S.A.
-
Director
Director
Name
27
18. FEES PAID TO AUDITORS
The fees for the financial audit services provided to the various companies composing the Group and other related companies by the principal auditor
amounted to EUR 1,468 thousand in 2007, of which EUR 258 thousand relate to services provided to VOCENTO, S.A. The audit fees charged by other
auditors participating in the audit of various Group companies totalled EUR 177 thousand.
The fees for other advisory services provided to the various Group companies by the principal auditor and by other entities related to the auditor during
2007 amounted to EUR 239 thousand.
19. GUARANTEES
At 31 December 2007, the Company had provided guarantees to various financial institutions totalling approximately EUR 22,811 thousand, of which
approximately EUR 387 thousand relate to aid for the development of technology projects from the Ministry of Industry, Trade and Tourism and EUR
22,424 thousand to secure guarantees given by other Group companies.
20. TRANSITION TO THE NEW ACCOUNTING STANDARDS
Royal Decree 1514/2007 was published on 20 November 2007. This Royal Decree approved the new Spanish National Chart of Accounts that came
into force on 1 January 2008, which must be applied for all periods beginning on or after that date.
Under the aforementioned Royal Decree, the first financial statements prepared in accordance with the rules contained therein will be considered to be
initial financial statements and, accordingly, they will not include comparative figures for the previous period; however, comparative figures for the
preceding period may be presented provided that they are adapted to the new Chart of Accounts. Also, the Chart of Accounts contains several
transitional provisions which afford various options in the first-time application of the new accounting standards and provide for the voluntary adoption
of certain exceptions in the first-time application process.
The Company is implementing a transition plan with a view to adapting to the new accounting standards which includes, inter alia, analysing the
differences in accounting rules and standards, determining whether or not comparative figures adapted to the new standards will be presented and,
consequently, the date of the opening balance sheet, selecting the accounting rules and standards to be applied in the transition and assessing the
changes that have to be made to the information systems and procedures.
At the date of formal preparation of these financial statements the aforementioned plan was still at the implementation phase and it is not currently
possible to estimate fully, reliably and with all the relevant information the potential effects of the transition.
21. EVENTS AFTER THE BALANCE SHEET DATE
On 28 February 2008, the Board of Directors resolved to accept the resignation of the Chief Executive Officer, Belarmino García Fernández, and to
appoint José Manuel Vargas Gómez as the new Chief Executive Officer.
28
22. STATEMENT OF CHANGES IN FINANCIAL POSITION
The statements of changes in financial position for the years ended 31 December 2007 and 2006 are as follows:
APPLICATION OF FUNDS
Non-current asset additions:
- Start-up costs
- Intangible assets (Note 6)
- Property, plant and equipment (Note 7)
- Long-term investments (Note 8)
Repayment or transfer to short term of
non-current liabilities (Notes 13 and 14)
Dividends (Note 11)
Decline in value of treasury shares
Amount used of provision for contingencies
and charges (Note 12)
Increase in working capital
TOTAL FUNDS APPLIED
Thousands of Euros
2007
2006 (*)
153
39
132,604
109
671
265
87,000
SOURCE OF FUNDS
Thousands of Euros
2007
2006 (*)
Funds obtained from operations
94,068
104,040
-
245
1,030
1,199
20,621
-
104,891
90,173
2,336
-
222,946
195,657
Non-current asset disposals:
- Intangible assets
Write-off or transfer to short term of tax
asset (Note 14)
5,164
18,429
50,959
62,000
-
22,979
3,325
-
30,702
4,204
222,946
195,657
Arrangement of long-term bank borrowings
(Note 15)
Arrangement of long-term debt
- Group companies (Note 10)
Treasury shares (Notes 4-e and 11)
TOTAL FUNDS OBTAINED
The increases (decreases) in working capital are composed of the following:
CHANGE IN WORKING CAPITAL
Inventories
Accounts receivable
Accounts payable
Short-term investments
Treasury shares
Cash
Accrual accounts
Increase (Decrease)
in working capital
Thousands of Euros
2007
2006 (*)
29
(8.559)
15.178
24.816
401
(1.052)
(111)
19
498
(10.296)
37.183
(23.249)
49
30.702
4.204
29
The reconciliation of the accounting profit for the year to the funds obtained from operations is as follows:
Thousands of Euros
Profit for the year
Add- Depreciation and amortisation charge (Notes 5, 6 and 7)
- Deferred charges allocated to profit for the year (Note 9)
- Changes in provisions for contingencies and charges
- Changes in control portfolio allowances (Note 8)
Less- Long-term deferred tax assets
- Changes in provisions for contingencies and charges (Note 12)
- Adjustment of long-term deferred tax assets and
liabilities due to change in tax rate (Note 14)
- Deferred income allocated to profit for the year
2007
2006 (*)
82,168
78,825
933
827
10,835
886
1,034
3,558
20,455
(18)
(718)
-
(527)
(150)
-
94,068
104,040
23. EXPLANATION ADDED FOR TRANSLATION TO ENGLISH
These financial statements are presented on the basis of accounting principles generally accepted in Spain. Certain accounting practices applied by the
Company that conform with generally accepted accounting principles in Spain may not conform with generally accepted accounting principles in other
countries.
30
31
Appendix
SUBSIDIARIES OF THE GROUP OF COMPANIES
OF WHICH VOCENTO, S.A. IS THE PARENT
32
Percentage of ownership
Company
Location
Line of business
Ownership interest
Direct
Indirect
Control
Paid-in
capital
Thousands of Euros
Profit (Loss)
for the
Interim
Reserves
year (1)
dividend
GROUP:
Printed media
Diario ABC, S.L.
Madrid
Daily press
99.99%
-
99.99%
6,100
38,500
(12,485)
-
Diario El Correo, S.A.U. (a) (c)
Bilbao
Daily press
-
100.00%
100.00%
8,000
29,707
22,611
(18,747)
(13,100)
Sociedad Vascongada de Publicaciones, S.A. (a) (c) San Sebastián Daily press
-
75.81%
75.81%
4,799
27,809
18,797
Editorial Cantabria, S.A. (d)
Santander
Daily press
-
85.91%
85.91%
2,367
5,343
8,776
(6,955)
Nueva Rioja, S.A.
Logroño
Daily press
-
58.92%
58.92%
1,000
6,290
2,267
(1,693)
Corporación de Medios de Murcia, S.A. (d)
Murcia
Daily press
-
97.61%
97.61%
3,333
12,515
6,105
(4,966)
Corporación de Medios de Andalucía, S.A. (d)
Granada
Daily press
-
98.20%
98.20%
3,333
9,852
4,284
(3,333)
Corporación de Medios de Extremadura, S.A. (d)
Badajoz
Daily press
-
97.07%
97.07%
1,667
4,017
755
(500)
Prensa Malagueña, S.A. (d)
Malaga
Daily press
-
87.82%
87.82%
4,950
14,829
7,032
(5,327)
El Norte de Castilla, S.A. (d)
Valladolid
Daily press
-
76.49%
76.49%
2,168
14,184
5,468
(4,545)
El Comercio, S.A.
Gijón
Daily press
-
51.46%
51.46%
105
7,377
2,055
(1,518)
Corp. Medios de Cádiz, S.L.U. (d)
Cádiz
Daily press
-
100.00%
100.00%
450
2,142
(2,175)
-
Federico Domenech, S.A.
Valencia
Daily press
-
57.42%
57.42%
458
26,477
6,934
(4,341)
Madrid
Free press
100.00%
-
100.00%
13,300
(5,298)
(2,039)
-
Madrid
Supplement publishing
-
76.04%
76.04%
1,763
6,209
8,778
(2,900)
Taller de Ediciones Corporativas, S.L.U.
Madrid
Content marketing
-
76.04%
100.00%
290
2,772
288
-
-
39.57%
52.04%
96
1,224
770
-
and magazine publishing
Inversor Ediciones, S.L.
Madrid
Economic magazine
publishing
Taller de Editores Motor, S.L.
Madrid
Magazine publishing
-
45.63%
60.00%
58
209
(218)
-
ABC Castilla-La Mancha, S.L.U.
Toledo
Publishing house
-
99.99%
100.00%
60
-
-
-
ABC Castilla y León, S.L.U.
Valladolid
Publishing house
-
99.99%
100.00%
60
-
-
-
ABC Cataluña, S.L.U.
Barcelona
Publishing house
-
99.99%
100.00%
60
-
-
-
Diario ABC de Valencia, S.L.U.
Valencia
Publishing house
-
99.99%
100.00%
60
-
-
-
ABC de Córdoba, S.L.U.
Córdoba
Publishing house
-
99.99%
100.00%
60
-
-
-
ABC Sevilla, S.L.U.
Seville
Publishing house
-
99.99%
100.00%
600
13,967
(1,797)
-
Gala Ediciones, S.L. (b)
Madrid
Magazine publishing
-
76.04%
100.00%
3
-
11
-
Radio broadcasting
-
95.48%
95.48%
358
465
(344)
-
Audiovisual
Canal Bilbovisión, S.L. (a) (c)
Bilbao
and local television
Canal Bilbovisión margen izquierda, S.L.U.(a) (c)
Bilbao
Local television
-
95.48%
100.00%
3
-
(1)
-
Canal Bilbovisión margen derecha, S.L.U. (a) (c)
Bilbao
Local television
-
95.48%
100.00%
3
-
(1)
-
Álava Televisión, S.L. (a) (c)
Vitoria
Radio broadcasting
-
98.95%
98.95%
467
439
(416)
-
Durango Telebista, S.L. (a) (c)
Vizcaya
Local television
-
100.00%
100.00%
163
(20)
-
Teledonosti, S.L. (a)
San Sebastián Local television
-
50.06%
66.04%
1,250
78
124
-
KTB-Kate Berria, S.L.U.(a) (c)
Eibar
-
75.81%
100.00%
50
135
(28)
-
Local television
(Guipúzcoa)
Jaizkibel Telebista, S.L.U. (a) (c)
-
75.81%
100.00%
3
-
-
-
Radiotelevisión Canal 8 - DM, S.L. (d)
Santander
Local television
-
85.73%
100.00%
925
(25)
(199)
-
Rioja Televisión, S.A.
Logroño
Radio broadcasting
-
47.04%
79.84%
1,204
(331)
(14)
-
-
73.22%
75.01%
2,040
(55)
(399)
-
La Verdad Radio y Televisión, S.L. (d)
Murcia
Radio broadcasting
Canal Ideal Televisión, S.L. (d)
Granada
Local television
-
78.89%
80.33%
615
124
(250)
-
Canal Cultural de Badajoz, S.A. (e)
Badajoz
Local television
-
75.96%
78.26%
335
165
(463)
-
El Comercio TV, Servicios Audiov., S.L.
Gijón
Local television
-
51.45%
99.99%
700
(114)
(38)
-
ABC Sevilla Multimedia, S.L.
Seville
Portfolio company
-
99.99%
100.00%
400
1,819
(1,781)
-
33
Company
Ownership interest
Direct
Indirect
Control
Paid-in
capital
Thousands of Euros
Profit (Loss)
for the
Interim
Reserves
year (1)
dividend
Location
Line of business
Pabellón de México, S.L.
Seville
Local television
-
73.10%
73.10%
190
225
(228)
Sdad. Gestora de Televisión Punto TV, S.L.U. (4)
Madrid
Local television
-
100.00%
100.00%
172
4,505
(3,490)
-
Las Provincias Televisión, S.A.U.
Valencia
Local television
-
57.42%
100.00%
3,000
27
3
-
Sociedad Gestora de Televisión Onda 6, S.A.U. (4)
Madrid
Digital television
-
100.00%
100.00%
7,710
2,841
(6,486)
-
Sociedad Gestora de Televisión NET TV, S.A. (e) (4)
Madrid
Digital television
-
69.93%
70.27%
6,098
(3,094)
(9,585)
-
-
Avista Televisió de Barcelona, S.L. (e) (4)
Barcelona
Digital television
-
100.00%
100.00%
845
(386)
(2,290)
-
Avista Televisión de Andalucía, S.A. (4)
Seville
Digital television
-
100.00%
100.00%
1,800
(12)
25
-
Radio Publi, S.L. (e) (4)
Madrid
Local radio broadcasting
-
63.66%
63.66%
7,873
(323)
(5,279)
-
Radio El Correo, S.L.U. (a) (c) (e)
Bilbao
-
100.00%
100.00%
6
2
(2)
-
Sociedad Vascongada de Radio, S.L.U. (a) (c)
San Sebastián Local radio broadcasting
-
75.81%
100.00%
3
281
15
-
Cartera de Medios, S.A.U. (d) (e)
Badajoz
-
97.07%
100.00%
550
(195)
(102)
-
Costa Visión, S.L.U. (d)
Malaga
-
87.82%
100.00%
156
22
(74)
-
Sociedad Aragonesa de Gestión
Madrid
-
63.66%
100.00%
3
-
2
-
Radiofónica, S.L. (4)
Radio Utrera La Voz de la Campiña, S.L.
Seville
-
63.66%
100.00%
139
198
(215)
-
Difusión Asturiana, S.L.
Oviedo
-
40.80%
79.31%
15
150
(73)
-
Radio Gaditana 2005, S.L. (d)
Cádiz
-
100.00%
100.00%
3
106
(106)
-
Proviradio, S.L.
Valencia
-
57.42%
100.00%
270
258
-
-
Radio LP, S.L.U.
Valencia
-
57.42%
100.00%
243
42
213
(175)
E-Media Punto Radio, S.A.U. (4)
Madrid
Digital radio
-
100.00%
100.00%
60
258
(176)
-
Corporación de Medios Radiofónicos
Vizcaya
Digital radio
-
91.30%
100.00%
6,011
(1,556)
(237)
-
Madrid
Holding company
-
85.00%
100.00%
30
224
(222)
-
Holding company and film
-
85.00%
100.00%
6,550
9,402
1,067
-
Digitales, S.A. (a) (c) (4)
Veralia Servicios de Producción
Audiovisual, S.L.U. (4)
Grupo Europroducciones, S.A. (4)
Madrid
production and distribution
technical services
Europroducciones TV, S.L. (4)
Madrid
TV programme production
-
80.78%
95.03%
1,051
891
(1,256)
-
IDD Publicidad, S.L. (4)
Madrid
Audiovisual representation
-
85.00%
100.00%
144
416
312
-
-
80.78%
100.00%
810
(32)
105
-
-
80.86%
100.00%
5
251
(102)
-
-
80.78%
100.00%
13
29
(42)
-
-
56.47%
69.91%
12
98
53
-
-
87.82%
100.00%
410
16
(174)
-
-
85.00%
100.00%
77
1,227
(936)
-
-
85.00%
100.00%
3
12
(3)
-
-
60.00%
80.00%
3
3
(2)
-
-
56.67%
66.67%
1,082
578
3,206
-
-
85.73%
99.8%
650
158
(317)
-
and advertising
Europroduzione, S.R.L. (4)
Italy
Film and TV programme
production
Europroducciones TV Portugal - Produçoes
Portugal
Audiovisuais, Lda. (4)
Euro TV Poland, sp.zo o. (e) (4)
production
Poland
production
Hill Valley, S.L. (4)
Madrid
production
Producciones Digitales del Sur, S.A. (d)
Malaga
company
Bocaboca Producciones, S.L. (4)
Madrid
production
Boca Interactiva, S.L. (4)
Madrid
production
Abandamedia Producciones, S.L. (4)
Valencia
production
Tripictures, S.A. (4)
Madrid
distribution
Editorial Cantabria de Radiotelevisión, S.A. (d)
34
Santander
Portfolio company
Company
Ownership interest
Direct
Indirect
Control
Paid-in
capital
Thousands of Euros
Profit (Loss)
for the
Interim
Reserves
year (1)
dividend
Location
Line of business
El Correo Digital, S.L.U. (a) (c)
Bilbao
Electronic press
-
100.00%
100.00%
400
41
163
-
Digital Vasca, S.L.U. (a) (c)
San Sebastián Electronic press
-
75.81%
100.00%
360
9
177
-
Editorial Cantabria Interactiva, S.L. (d)
Santander
Electronic press
-
85.90%
99.99%
60
153
107
(106)
La Rioja Com. Serv. en la Red, S.A.U.
Logroño
Electronic press
-
58.92%
100.00%
181
82
-
-
La Verdad Digital, S.L.U. (d)
Murcia
Electronic press
-
97.61%
100.00%
250
65
77
-
Ideal Comunicación Digital, S.L. (d)
Granada
Electronic press
-
98.20%
100.00%
420
(8)
65
-
Internet
Ediciones Digitales Hoy, S.L.U. (d)
Badajoz
Electronic press
-
97.07%
100.00%
100
172
10
-
Diario Sur Digital, S.L. (d)
Malaga
Electronic press
-
87.82%
100.00%
350
(62)
74
-
El Norte de Castilla Digital, S.L.U. (d)
Valladolid
Electronic press
-
76.49%
100.00%
60
222
104
-
El Comercio Digital Serv. Red, S.L.
Gijón
Electronic press
-
51.45%
99.99%
15
266
43
-
La Voz de Cádiz Digital, S.L. (d) (e)
Cádiz
Electronic press
-
100.00%
100.00%
3
114
(114)
-
ABC Periódico Electrónico, S.L.U.
Madrid
Electronic press
-
99.99%
100.00%
60
377
533
-
ABC Sevilla Digital, S.L.
Seville
Electronic press
-
99.99%
100.00%
3
60
(46)
-
Valenciana Editorial Interactiva, S.L.U.
Valencia
Electronic press
-
57.42%
100.00%
121
8
62
-
Sarenet, S.A. (a) (c)
Vizcaya
Internet operator
-
80.00%
80.00%
1,000
3,037
1,671
-
Taller de Editores Digital, S.L.
Madrid
News agency
-
76.04%
100.00%
92
71
(6)
-
Alianzas y Nuevos Negocios, S.L.U.
Madrid
Holding company for
-
100.00%
100.00%
750
563
(860)
-
-
100.00%
100.00%
70
795
(545)
-
vertical portals
Vocento Media Trader, S.L.U. (a) (c)
Vizcaya
Preparation of content for
electronic media
La Trastienda Digital, S.L.U. (a) (c)
Vizcaya
E-commerce
-
100.00%
100.00%
66
627
370
-
Desarrollo de Clasificados, S.L.
Madrid
Holding company for
-
100.00%
100.00%
1,000
1,597
(1,602)
-
-
69.07%
69.07%
339
(23)
(191)
-
-
51.00%
51.00%
1,269
504
1,504
-
classified advertisements
Advernet, S.L. (e)
Madrid
Search engine and
video platform
Infoempleo, S.L.
Madrid
Employment search
services and consulting
Madrid
Electronic magazine
-
50.01%
50.01%
60
338
430
-
Habitatsoft, S.L.
Barcelona
Real estate services
-
60.29%
60.29%
5
821
(306)
-
Holding de Portales de Motor, S.L.
Madrid
Holding company for
-
51.02%
51.02%
3,251
(16)
(182)
-
-
40.80%
80.00%
35
196
205
-
motor portals
Unión Operativa de Autos, S.L.
Madrid
Car sales
Other businesses
Distribución de Prensa por Rutas, S.L.
Madrid
Distribution
-
60.00%
60.00%
60
700
189
-
Beralan, S.L. (a)
Guipúzcoa
Distribution
-
50.49%
50.49%
218
2,821
1,748
(1,000)
Sector MD, S.L. (a)
Vizcaya
Distribution
-
38.47%
76.18%
3
620
600
(265)
Banatu, S.L. (a)
Bilbao
Distribution
-
50.49%
99.99%
5
64
130
-
Bilbao Editorial Producciones, S.L.U. (a) (c)
Bilbao
Graphic arts
-
100.00%
100.00%
12,000
10,849
5,368
-
Sociedad Vascongada de
San Sebastián Graphic arts
-
100.00%
100.00%
3,000
5,621
71
-
Printolid, S.L.U.
Valladolid
Graphic arts
-
100.00%
100.00%
3,003
1,463
8
-
Guadalprint Impresión, S.L.U.
Malaga
Graphic arts
-
65.00%
65.00%
1,500
(73)
(114)
-
Rotodomenech, S.L.
Valencia
Graphic arts
-
57.42%
100.00%
3,039
(464)
129
-
Regionalprint, S.L.U.
Gijón
Graphic arts
-
100.00%
100.00%
3
1,497
(81)
-
Localprint, S.L.
Alicante
Graphic arts
-
50.00%
50.00%
10,000
-
70
-
Producciones, S.L.U. (a) (c)
Arte Final J.P. Saferi, S.A. (d) (e)
Malaga
Foreign daily press
-
87.82%
100.00%
60
(7)
(20)
-
La Verdad Editora Internacional, S.L.U. (b) (d)
Murcia
Foreign daily press
-
97.61%
100.00%
60
(3)
-
-
555 Unimedia, S.L.U.
Valencia
Free press
-
57.42%
100.00%
156
283
(314)
-
Central Sur, S.A. (d)
Malaga
Free press
-
87.82%
100.00%
60
135
(164)
-
35
Company
Ownership interest
Direct
Indirect
Paid-in
capital
Location
Line of business
Gratuitos de Corporación de Medios, S.L. (a)
Bilbao
Free press
-
60.34%
60.34%
60
529
(543)
Servicios Redaccionales Bilbaínos, S.L.U. (a) (c)
Bilbao
Free press
-
100.00%
100.00%
550
(142)
81
-
Cotlan 900, S.L. (a)
Bilbao
Audiotex
-
60.00%
60.00%
511
(177)
113
-
La Voz de Avilés, S.L.
Avilés
Daily press
-
43.70%
84.92%
52
136
10
-
Zabalik 2.000, S.L.U. (a) (b) (c)
San Sebastián Weekly press
-
50.00%
50.00%
3
121
27
-
La Guía Comercial 2000, S.L. (a)
Bilbao
-
62.74%
40.00%
60
375
176
-
Guidebook publishing
Control
Thousands of Euros
Profit (Loss)
for the
Interim
Reserves
year (1)
dividend
-
Gourmet Plus Bilbao, S.L. (a)
Bilbao
Gastronomic festival
-
50.00%
50.00%
3
-
1
-
Fiesta Alegre, S.L.U.
Valencia
Property development
-
57.42%
100.00%
8,489
343
107
(75)
Cableedición, S.L.
Valencia
Portfolio company
-
40.19%
70.00%
3
(2)
-
-
Rineudi, S.L. (b)
Barcelona
Internet
-
51.00%
51.00%
3
(1)
-
-
and rental
Servicios Auxiliares de Prensa
Independiente, S.A. (b)
Madrid
Inactive
-
72.42%
95.24%
39
7
-
-
Gran Enciclopedia de Cantabria, S.L.U. (d)
Santander
Book sales
-
85.79%
99.87%
9
2
-
-
El Norte de Castilla Multimedia, S.L.U. (d)
Valladolid
Advertising
-
76.49%
100.00%
1,987
(312)
(73)
-
CM Norte, S.L.U. (a) (c)
Bilbao
Advertising
-
100.00%
100.00%
88
475
21
-
DV Multimedia Comunicación y
San Sebastián Advertising
-
75.81%
100.00%
100
284
20
-
Santander
Advertising
-
85.91%
100.00%
1
-
-
-
Santander
Advertising
-
85.91%
100.00%
60
-
-
-
Logroño
Advertising
-
58.92%
100.00%
61
120
10
-
Comercial Media de Levante, S.L.U. (d)
Murcia
Advertising
-
97.61%
100.00%
125
173
3
-
Comercializadora de Medios Andalucía, S.L. (d)
Granada
Advertising
-
98.20%
100.00%
300
115
31
-
Corp. Medios Extremadura Multimedia, S.L.(d)
Badajoz
Advertising
-
97.07%
100.00%
150
9
2
-
Structure
Servicios, S.L.U. (a) (c)
Comercializadora de Medios de
Cantabria, S.C. (b) (d)
Comercializadora Multimedia de
Cantabria, S.L. (d)
Rioja Medios, Compra de Medios
de Publicidad, S.A.U.
Corporación de Medios del Sur, S.L. (d)
Malaga
Advertising
-
87.82%
100.00%
5
377
(12)
-
Comercializadora de Medios de Castilla
Valladolid
Advertising
-
76.49%
100.00%
60
51
(39)
-
y León, S.L.U.(d)
Comercializadora de Medios de Asturias, S.L.
Gijón
Advertising
-
51.45%
99.99%
30
4
(4)
-
Comercial Multimedia Vocento, S.A.U. (d)
Madrid
Advertising
-
100.00%
100.00%
600
83
(162)
-
Globalia de Marketing y Medios, S.L.U.(d)
Madrid
Advertising
-
100.00%
100.00%
60
-
-
-
Comercializadora Medios ABC Andalucía, S.L.U.
Seville
Advertising
-
99.99%
100.00%
3
7
(6)
-
Comercializadora de Medios Las Provincias
Valencia
Advertising
-
57.42%
100.00%
3
7
7
-
Veralia, Corp. Productoras Cine y TV, S.L. (a) (c) (4)
Vizcaya
Holding company
-
85.00%
85.00%
41,176
23,860
(15,226)
-
Distribuciones COMECOSA, S.L.U. (a) (c)
Vizcaya
Holding company
-
100.00%
100.00%
451
7,003
1,953
(800)
Radio Tele Basconia, S.L.U. (a) (c)
Bilbao
Radio broadcasting
-
100.00%
100.00%
301
822
42
-
Corporación de Medios Regionales, S.L.U. (a) (c)
Bilbao
Holding company
100.00%
-
100.00%
27,770
67,040
44,048
(38,000)
COMERESA PRENSA, S.L.U. (d)
Madrid
Holding company
-
100.00%
100.00%
79,784
182,767
21,207
(15,000)
COMERESA PAIS VASCO, S.L.U. (a) (c)
Vizcaya
Holding company
-
100.00%
100.00%
9,686
36,370
32,852
(29,000)
Vizcaya
Holding company
100.00%
-
100.00%
60
32,148
26,277
-
Vizcaya
Holding company
100.00%
-
100.00%
555
1,679
(1,020)
-
Vizcaya
Holding company
100.00%
-
100.00%
40,740
78,096
27,005
(23,779)
Multimedia, S.L.U.
de Prensa, S.A. U. (a) (c)
Tecnologías, S.L.U. (a) (c)
Audiovisuales, S.L.U. (a) (c) (4)
36
Company
Corporación de Medios de
Location
Line of business
Vizcaya
Holding company
Ownership interest
Direct
Indirect
100.00%
-
Control
Paid-in
capital
Thousands of Euros
Profit (Loss)
for the
Interim
Reserves
year (1)
dividend
100.00%
10,000
44,643
699
-
Comunicación, S.L.U. (a) (c)
Comeco Impresión, S.L.U. (a) (c)
Vizcaya
Holding company
-
100.00%
100.00%
9,249
39,863
5,112
-
Viápolis, S.L.U. (a) (c)
Vizcaya
Internet advertising
-
100.00%
100.00%
66
(16)
13
-
Madrid
Holding company
100.00%
-
100.00%
1,500
65,434
(17,411)
-
Digitales, S.L.U. (4)
Pantalla Digital, S.L. (e) (4)
Madrid
Portfolio company
-
100.00%
100.00%
1,000
125
(6,941)
-
Fundación Colección ABC
Madrid
Foundation
-
99.99%
100.00%
30
-
(14)
-
% of Ownership
Direct
Indirect
Interim
dividend
Company
Location
Line of business
ASSOCIATES:
Printed media
Milenio ABC, S.A. de C.V. (2)
Mexico
Daily press
-
49.00%
10,251
(10,178)
(7,744)
-
Audiovisual
Gestevisión Telecinco, S.A. and subsidiaries
Madrid
-
13.00%
123,321
129,658
353,058
-
Madrid
Madrid
Indirect management of
the public television service
Film and TV programme production
-
42.50%
20.40%
91
4
(86)
(776)
(3)
(318)
-
Madrid
Madrid
Madrid
Barcelona
Portugal
Italy
-
25.51%
25.51%
25.51%
25.51%
25.51%
25.51%
65
60
60
61
50
10
89
6,947
356
28
146
485
1,013
1,630
200
100
(20)
(552)
(1,000)
(99)
-
Salamanca
Asturias
Cádiz
Valencia
Madrid
Distribution
Distribution
Distribution
Distribution
Services, events and public relations
-
26.35%
24.70%
22.50%
22.75%
35.72%
37
14
100
144
4
10
747
152
1,464
509
652
736
3,027
2,259
13
(265)
(2,145)
(500)
-
Plato Chroma, S.A. (4)
Grupo Productores Independientes,
S.L. (3) (4)
Grupo Videomedia, S.A. (4)
Videomedia, S.A. (4)
Imagen y Servicios, S.A. (4)
Alia Ediciones, S.L. (4)
Videomedia Portugal, LTDA. (4)
Videomedia Italia, S.R.L. (4)
Other businesses
Distribuciones Papiro, S.L.
Cirpress, S.L.
Distrimedios, S.A. (4)
Val Disme, S.L. (4)
Capital
Thousands of Euros
Profit (Loss)
for the
Reserves
year (1)
(1) Estimated and/or pending approval by the shareholders at the respective Annual General Meetings and before the distribution of dividends.
(2) This information is presented in accordance with local accounting principles and in thousands of Mexican pesos.
(3) Data at 31 December 2006.
(4) Companies subject to mandatory audit of their financial statements which have been audited by KPMG Auditores. Remaining companies subject to
mandatory audit of their financial statements which have been audited by Deloitte.
(a) Subsidiaries subject to provincial income tax legislation.
(b) Inactive at the present date.
(c) Companies comprising the Basque Country consolidated Tax Group.
(d) Companies comprising the consolidated Tax Group whose parent is Comeresa Prensa, S.L.U.
(e) Company in a situation of mandatory dissolution pursuant to the Consolidated Spanish Companies Law or the Spanish Limited Liability Companies
Law where the necessary steps have been taken or will be taken shortly (merger, capital increase, etc.) to restore the net worth equilibrium.
37
Management Report
VOCENTO, S.A.
2007 MANAGEMENT REPORT
38
BUSINESS EVOLUTION
Financial situation
In 2007 the world economy grew by 5.2%, surpassing the expectations at the start of the year. Although it has continued to show signs of strength,
the main engine of growth was based on the strong activity of emerging countries, offsetting the signs of the incipient slowdown among industrialised
countries during the whole year. During the first six months of 2007, the economic situation has continued at the same pace of growth as in 2006.
From the month of August, the confidence crisis suffered by the financial markets, due to the increase in delinquency ratios in subprime mortgages in
the United States has led to a state of uncertainty with respect to the macroeconomic prospects of more industrialised countries.
The European Union growth rate for 2007 was 2.5%, showing a certain loss of dynamism. The main causes for the slowdown are the deterioration in
the private consumer sector, loss of competitiveness with respect to foreign trade caused by the strength of the Euro and the divergence among the
member states of the Euro Zone.
During the first nine months of 2007, the Spanish economy has continued to show a positive trend, maintaining an average growth rate of around 4%.
This has been possible due to internal demand and private consumption, and investment, particularly in heavy goods. Since the month of October,
Spain has also started to notice the effects of the international economic slowdown, which has given rise to an estimated growth for 2008 of less than
3.1%, as officially forecasted by the Government.
VOCENTO has completed its first year as a listed company, and achieved solid economic results in a highly competitive environment.
VOCENTO closed 2007 with shares valued at 13.6 euros each, corresponding to a market capitalisation of 1,699 million euros.
During the past year, VOCENTO has continued to lead the daily press publishing sector in Spain. This position has been strengthened since last August 1
2007, by the purchase of 100% of the share capital of the firm “Factoría de Información, S.A.”, which publishes the free national daily publication Qué!.
Business areas
During 2006, with a view to increasing transparency in reporting financial information and improving the quality of both financial and non-financial
information and thereby obtaining more useful, reliable information for company management and market reporting, the company modified its
segmentation criteria. In 2007, sales management has considered that to better evaluate company risks and performance, it would be appropriate to
prepare management information based on the different lines of activity defined, which are the Printed Press, Audiovisual, Internet and Other
Businesses segments, with a view to presenting all its news media, digital editions, local TVs, etc. assigned to each line of activity referred to above. The
comments included in this Management Report are made on the basis of the foregoing segments.
Printed Press
VOCENTO has been consolidated as the number one communication group in Spain in the number of copies sold, with 732,708 daily copies sold, and
a market share of 23.6% of all general information daily press. In addition, following the purchase of the free national daily publication Qué!,
VOCENTO has added a further 956,585 copies to its scope of coverage.
VOCENTO is the indisputable leader in general information printed press, according to EGM’s third wave accumulation. VOCENTO’s joint audience,
including regional, national and free press, reached 5.1 million readers a day, representing a market share of 37.4% of the global audience for general
information Spanish newspapers.
Audiovisual
VOCENTO’s commitment to the audiovisual sector continues in 2007. Its strategy enables it to operate globally in the audiovisual market, since it has a
national TDT licence and different local and regional TV licences and a general news radio channel, Punto Radio, in addition to holding digital radio
licences at national level and holding shares in contents-producing companies and a film distribution company.
39
Internet
The Spanish internet market is undergoing a phase of growth. In 2007, VOCENTO consolidated its position as one of the top communication internet
groups in Spain. A total of 15.3 million single monthly users visited the VOCENTO websites in December, with an increase of 37.6% in the same figure
for the previous year (source: Nielsen Site Census). VOCENTO was ranked seventh in the Netview ranking, climbing four places since the beginning of the
year.
Other businesses
In addition to the foregoing activities, VOCENTO has the following businesses: printing, distribution, and shares in other companies in the regional
multimedia, free, Audiotex and events sectors.
Among these firms are Comeco Impresión and Distribuciones Comecosa, whose business is linked to the Printed Media activity. It should be mentioned
that at the end of 2006 the company plan for segregating printing centres for certain regional newspapers was started up.
Positive economic results in a highly competitive environment
VOCENTO, S.A.’s individual financial statements are submitted based on the General Accounting Plan Guidelines.
As shown in its consolidated accounts, VOCENTO, S.A. has obtained a positive balance in 2007.
The balance sheet shows an increase in assets and liabilities of 134.0 million Euros, due to an increase in shares held in Group companies.
The profit and loss account shows a result after tax of 82.2 million Euros, the result of the efficient management by the business areas into which the
Group is divided, and the excellent results obtained by its participated companies, which has enabled it to receive important dividends.
DIVIDENDS
The general dividend policy of VOCENTO following the public offering, is forecasted as payment of approximately 75% of the net profit due to its
shareholders, subject to diverse factors, and including, among others, VOCENTO’s income, financial situation, available cash, cash requirements
(including capital costs and investment plans), prospects and any other factors that might be considered relevant in the future.
In 2007, VOCENTO complied with the foregoing dividend policy and the Board of Management will propose to the General Ordinary Shareholders
Assembly payment of a total dividend of 61,625 thousand Euros, broken down as follows: a complementary dividend of 23,839 thousand Euros, and
a gross dividend on account for a total amount of 37,786 thousand Euros, which was approved on July 25, 2007 and made effective on October 10,
2007.
OWN EQUITY
Currently VOCENTO is the direct holder of 2,224,675 shares in its own company, equivalent to1.78% of its share capital. The average cost price of its
own shares is 14.47 Euros per share, representing a total cost of 32,189 thousand Euros.
40
MANAGEMENT PLAN
On September 5, 2006 the General Shareholders Assembly decided to approve an Incentives Plan referenced at the value of the shares of VOCENTO,
S.A. for executive officers, Senior Management and directors of VOCENTO. The plan consists of establishing a single variable incentive linked to the
evolution of the listed share price during a period of 3 years from the date of its listing in the stock market and subject to obtaining a determined
increase in the group EBITDA, corresponding to each management category, through a cash sum equivalent to a number of reference shares. The
variable cash amount will be equal to the amount obtained by multiplying the number of reference shares held by the director by the positive difference
between the price on the date of listing in the stock market and the price of the share three years afterwards, applying a correction factor dependent
on the extent of compliance with the EBITDA increase objective. Although at the time of establishing the plan, the maximum number of reference
shares was 1,230,000 as a result of the number of employees affected by the plan leaving the company, as at December 31 2007, the number of
reference shares stands at 1,040,000.
RESEARCH AND DEVELOPMENT (R+D) ACTIVITIES
The Company has not made any significant investments in R+D activities in 2007.
USE OF FINANCIAL INSTRUMENTS
VOCENTO uses derivative-based financial instruments to cover the risks to which its activities, operations and future cash flows are exposed,
fundamentally risks arising from variations in exchange rates and interest rates. As at December 31 2007 the Dominant Partner had no contracts in force.
EVENTS OCCURRING AFTER THE CLOSE OF THE FINANCIAL YEAR
Between December 31 2007 and the date of formulating these annual accounts, no significant events have taken place that could affect the true
image of the annual accounts for the year 2007.
On January 28 2008, the Board of Management of VOCENTO, S.A. unanimously agreed to accept the resignation of its Chief Executive Officer, Mr.
Belarmino García Fernández. In additional the Board of Management also unanimously appointed Mr. José Manuel Vargas Gómez as its new Chief
Executive Officer.
FORECASTED EVOLUTION
VOCENTO’s bases are founded on these financial results and the figures on both diffusion and audience, which constitute the source of these results,
and they continue to remind us of the high standard of responsibility and commitment we assume in our Group towards our audience and to the
announcers to which we provide service.
The above enables us to face the coming year with a series of ambitious objectives, and a consolidated position in the audiovisual and Internet sectors,
maintaining its leadership in general information press with enormous quality and profit growth. This will enable VOCENTO to be an even greater
leader in the general information press sector and an even stronger multimedia Group.
During this new stage, VOCENTO aspires to become one of the largest multimedia communication groups, combining its national presence with its
local approach through integrated management that will enable it to generate synergies in all its business activities.
41
ADDITIONAL INFORMATION PROVIDED IN COMPLIANCE WITH ARTICLE 116 A OF THE SECURITIES MARKET ACT
a. The capital structure, including securities not negotiated in a regulated community market, indicating as applicable, the different
classes of shares and for each share class, the rights and obligations conferred and the share capital percentage represented;
As at December 31, 2007, the share capital of the Dominant Partner amounted to 24,944 thousand Euros, and is formalised by 124,970,306 shares
each with a face value of 0.2 Euros, fully subscribed and paid up. The company shares are listed on the Spanish continuous market and in the Stock
Exchanges of Madrid, Bilbao, Barcelona and Valencia.
b. Any existing restrictions in the transferability of the shares;
There are no restrictions on the transferability of the shares.
c. Significant holdings in the capital, both direct and indirect;
Since the VOCENTO shares are represented by account entries, the holdings of the shareholders in the share capital are not precisely known.
However, based on the notifications made to the National Securities Market Commission (NSMC) significant holders of over 3% are the following:
Shareholder
MEZOUNA, S.L.
Valjarafe, S.L.
Asua de Inversiones, s.l.
Bycomels Prensa, S.L.
Energay de Inversiones, S.L.
Onchena, S.L.
Casgo, S.A.
Bestinver Gestión,S.A., S.G.I.I.C
Number of Shares
12,974,368
11,097,249
10,281,476
9,975,388
8,017,929
6,836,456
5,532,008
4,726,367
3,772,751
Share %
10.38%
8.88%
8.23%
7.98%
6.42%
5.47%
4.43%
3.78%
3.02%
• Víctor Urrutia Vallejo holds 414,487 direct shares and 10,406,195 indirect shares through ROLAR DE INVERSIONES S.A. (124,719) and ASUA DE
INVERSIONES S.A. (10,281,476). Total: 8.659%.
• Enrique de Ybarra Ybarra holds 500 direct shares and 8,123,161 indirect shares through ENERGAY DE INVERSIONES, S.L. (8,017,929) and GOGOL
DE INVERSIONES S.L. (105,232).Total: 6.500%.
• María del Carmen Careaga Salazar holds 51 direct shares and 6,836,456 indirect shares through ONCHENA, S.L. Total: 5.470%.
• Guillermo Luca de Tena Brunet holds 157,014 direct shares and 11,097,249 indirect shares through VALJARAFE, S.L. Total: 9.006%.
d. Restrictions with respect to voting rights;
There are no statutory restrictions on voting rights, above and beyond what is provided in article 44.1 of the Public Limited Companies Act, which
establishes that “shareholders in default of payment of passive dividends shall not be entitled to vote”
e. Para-social agreements;
Between September 21 and 29 2006, an agreement was subscribed on Optimisation of the Value of VOCENTO, S.A. Shares which was later entered
into record in a deed executed by the Notary of Madrid, Mr. Carlos Ruiz-Rivas Hernando on November 3, 2006. The agreement sets forth that no
holdings shall be purchased in excess of 49.99% of the share capital. The existence of this agreement and its content were notified to the NSMC on
November 8, 2006. This agreement regulates a series of restrictions on the transfer of shares held by the parties signing the agreement during the
first two years after the listing of the company and during the first five years, and certain commitments in the event that a public offering is
formulated on the shares of the company and preferential acquisition rights of the subscribing shareholders.
42
The parties signing this agreement are the following shareholders:
Shareholder
Share %
Mezouna, S.L.
Asua de Inversiones, S.L.
Onchena, S.L.
AtlanPresse S.A.
Mrs. María Magdalena Aguirre Azaola
Mrs. María del Carmen Aguirre Azaola
Odofy, S.A.
Madoan, S.A.S.
Roflu, S.A.
Desarrollos y Servicios de Inversión, S.A.
Ybazubi, S.L.
Mr. Víctor Urrutia Vallejo
Rolar de Inversiones, S.L.
Gogol de Inversiones, S.L.
10.38%
7.98%
7.37%
6.19%
5.39%
1.89%
0.79%
0.79%
0.57%
0.46%
0.46%
0.45%(*)
0.45%
0.33%
0.10%
0.08%
(*) With the authorisation of all the Agreement subscribers, in a deed dated November 12, 2007, authorised by the Notary of Madrid Mr. Pedro de la Herran, with number 3021 of his
record, the Winding up and Dissolution of the company Garmyba Invest, S.L., was executed and the ensuing awarding of shares in that company made to the sole shareholder Desarrollos
y Servicios de Inversión, S.A., which later subscribed the Agreement.
f. The applicable rules for appointing and replacing members of the board of management and modifying the Company Articles;
As established in the Public Limited Companies Act, and the Board of Management Regulation, the Board Members shall be those designated, reelected or ratified by the General Shareholders Assembly or the Board of Management, as is applicable, pursuant to the provisions of the Public
Limited Companies Act and the Company Articles. It is not necessary to be a Company shareholder to be appointed director.
Proposals for appointing, re-electing and ratifying Board Members submitted by the Board of Management to the consideration of the General
Shareholders Assembly and the decisions for appointing them taken by the Board itself by virtue of the powers of co-optation it legally holds, shall,
in turn, be preceded by (i) the respective proposal from the Appointments and Salaries Commission in the case of independent board members and
(ii) a report by that Commission for other board members. In the case of re-election or ratification, the proposal or report of the Commission shall
contain an assessment of the work and effective dedication in the post during the last period of time the proposed director occupied the post. In all
cases, if the Director is removed from the proposal by the Commission of Appointments and Salaries, this decision shall be justified and a record
made of the reasons for that decision.
In selecting the person to be proposed for the post of director, importance shall be given to this person being of reputed standing, competence and
with sufficient experience.
With respect to board members representing shareholders, these shall include the persons proposed by the respective holders of stable holdings in
the share capital that are considered as being of sufficient importance.
The responsibilities of each director shall be explained by the Board to the General Shareholders Assembly, which shall make or ratify the
appointment.
The post of Director shall have a term of six years, and Directors may stand for re-election.
43
Directors shall resign from their posts when the term for which they were appointed has lapsed, and when this is decided on by the General
Assembly, through the use of the powers conferred upon it.
Furthermore, the directors may inform and resign, as necessary, in all cases in which they may harm the name and standing of the company and in
particular, if: the reasons for which they were appointed no longer exist; if they are involved in any of the alleged cases of incompatibility or legally
prohibition provided for; if they are severely reprimanded by the Auditing and Compliance Commission or by the Appointments and Salaries
Commission for being in breach of any of their obligations as directors.
With respect to independent directors, once elected or ratified in their posts, the Board shall not propose their resignation prior to the expiry of the
statutory term for which they were appointed, except in the event of just cause, acknowledged by the Board, and following a report by the
Appointments and Salaries Commission and except if, as a consequence of operations entailing a change in the capital structure, those changes
imply a change in the board structure, so that it reflects the proportion between the share capital represented by the members representing the
shareholders and the rest of the capital.
In all cases, Board Members shall be obliged to inform the Board of any criminal proceedings in which they may be involved as defendants, and the
outcome of such proceedings. If any director is tried in court or a verbal court proceeding is filed against him for any of the offences indicated in
article 124 of the Public Limited Companies Act the Board shall examine the case and in view of the specific circumstances, decide whether or not to
allow the director to continue occupying his post.
As provided by the Public Limited Companies act and Company Articles, the ordinary or extraordinary General Shareholders Assembly is authorised
to modify the company articles.
For a resolution to modify the articles to be validly passed, all the shareholders, either in person or represented, are required to be present at the first
calling, representing at least fifty per cent of the subscribed capital with voting rights and at the second calling, the attendance of twenty-five per
cent of the capital shall be deemed sufficient. However, if shareholders are present representing less than fifty per cent of the subscribed capital with
voting rights, the resolution to modify the articles shall only be valid with the favourable vote of two-thirds of the capital present or represented at
the Meeting.
For a General Assembly at which a statutory modification is proposed for approval, each item or group of items that are substantially independent
shall be voted separately.
g. The powers of the board of management and in particular, those relating to the possibility of issuing or repurchasing shares
The Company’s policy is to delegate all the powers of the Board of Management that can be delegated, in conformity with the law, Articles and
Regulations, in favour of one Executive Commission and one Executive Officer.
At the time of drawing up this report, the Executive Commission consists of the following members:
• Chairman: Mr. Diego del Alcázar Silvela
• Chief Executive Officer: Mr. José Manuel Vargas Gómez
• Officers: Mr. Santiago Bergareche Busquet
Mrs. Soledad Luca de Tena García Conde
Mr. Alvaro Ybarra Zubiría
Mezouna, S.L. represented by Mr. Ignacio Ybarra Aznar
At the time of writing this report, the Chief Executive Officer is Mr. José Manuel Vargas Gómez, who, in exercising his executive powers, and by virtue
of what is set forth in article 14 of the Board of Management Regulations, shall inform the Executive Commission of any operation exceeding 3
million Euros prior to executing it.
44
The Board of Management has powers conferred on it by the General Shareholders Assembly held on April 25 2007, for the acquisition of own
equity up to a limit of 5%, and for a term of 18 months from the date of the foregoing General Assembly.
At the Extraordinary General Assembly held on September 5, 2006 it was agreed to authorise the Board of Management to reach agreement, within
a term of five years, on one or several capital increases up to a maximum of 12,497,030 Euros, with the option of excluding the preferential
subscription right under the terms of article 159 of the Public Limited Companies Act.
h. All significant agreements approved by the Company and entering into force shall be modified or concluded in the event of a change
in the Company’s shareholders, based on a public acquisition offer and its effects, as well as their effects, unless their should cause
serious harm to the Company. This exception shall not apply if the Company is legally obliged to disclose such information
No agreements exist that consider this scenario.
i. Any agreements between the Company and its administrative officers and management or employees implying the payment of
compensation in the event of resignation or unfair dismissal, or in the case of the employment contract reaching its term on occasion
of a public acquisition offer
Senior Managers have a clause in their contracts that determines the compensation due in the event of unfair dismissal for a sum ranging from what
is established by labour legislation to up to 3 years’ gross annual salary. As an exception, in these cases, the contracts of lower level directors include
clauses of this type in some cases, establishing a compensatory payment of 1 years’ gross annual salary.
In the case of the former Chief Executive Officer, Mr. Belarmino García, until his resignation on January 27, 2008, the clauses of his contract include
a term of notice prior to terminating the contract and an amount in compensation of between 3.5 years of full salary or 3 years of his fixed salary
plus 55% of variable salary for the last year, depending on the date on which the contract was terminated. In addition, a non-competition clause was
established for a term of 2 years, amounting to one year’s salary.
45
Consolidated Financial Statements
VOCENTO, S.A.
AND SUBSIDIARIES
INDEPENDENT AUDITORS' REPORT
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR
ENDED 31 DECEMBER 2007 AND DIRECTORS' REPORT
46
Index
Consolidated balance sheets at 31 December 2007 and 2006
48
Consolidated income statements for the years ended 31 December 2007 and 2006
49
Consolidated cash flow statements for the years ended 31 December 2007 and 2006
50
Consolidated statements of changes in equity for the years ended 31 December 2007 and 2006
51
Explanatory notes to the consolidated financial statements for the years ended 31 December
2007 and 2006
1. Group activities
2. Basis of presentation of the consolidated financial statements and basis of consolidation
3. Applicable legislation
4. Accounting policies
5. Use of estimates
6. Risk management policies
7. Profit/Loss from discontinued operations and assets classified as held for sale
8. Goodwill
9. Other intangible assets
10. Property, plant and equipment
11. Investments accounted for using the equity method
12. Interests in joint ventures
13. Financial assets
14. Inventories
15. Trade and other receivables
16. Cash and cash equivalents
17. Equity
18. Provisions
19. Trade and other payables
20. Bank borrowings and other financial liabilities
21. Derivative financial instruments
22. Deferred income
23. Other non-current payables
24. Deferred taxes and income tax expense
25. Tax receivables and payables
26. Business segment reporting
27. Revenue
28. Procurements
29. Staff costs
30. Outside services
31. Finance income
32. Finance costs
33. Net gain on disposal of non-current assets
34. Other income and expenses
35. Acquisition of subsidiaries
36. Earnings per share
37. Balances and transactions with other related parties
38. Remuneration of directors
39. Remuneration of senior executives
40. Other disclosures concerning the Board of Directors
41. Guarantee commitments to third parties
42. Fees paid to auditors
43. Events after the balance sheet date
44. Authorisation for issue of the consolidated financial statements
45. Explanation added for translation to English
52
52
57
59
70
71
73
74
75
76
77
79
79
80
80
81
81
84
86
86
87
88
89
90
91
92
95
95
95
96
96
97
97
97
98
102
103
104
105
106
108
109
109
109
109
47
VOCENTO, S.A.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS AT 31 DECEMBER 2007
AND 2006 (*) (NOTES 1, 2, 3 AND 4)
Thousands of Euros
ASSETS
NON-CURRENT ASSETS:
Intangible assets
Goodwill
Other intangible assets
Property, plant and equipment
Property, plant and equipment in use
Property, plant and equipment in the course
of construction
Investments accounted for using the
equity method
Financial assets
Non-current investment securities
Other non-current financial assets
Other non-current receivables
Deferred tax assets
CURRENT ASSETS:
Inventories
Trade and other receivables
Tax receivables
Cash and cash equivalents
TOTAL ASSETS
Note
8
9
10
11
13.a
13.b
24
14
15
25
16
2007
2006
349,203
240,134
109,069
237,650
232,413
248,718
132,742
115,976
222,239
215,555
5,237
6,684
111,896
16,835
15,523
1,312
167
105,851
821,602
109,333
17,217
15,952
1,265
72
82,025
679,604
35,628
249,996
16,624
43,045
345,293
26,886
217,276
16,515
114,931
375,608
1,166,895 1,055,212
Thousands of Euros
EQUITY AND LIABILITIES
EQUITY:
Of the Parent
Share capital
Reserves
Treasury shares
Net profit for the year
Interim dividend
Of minority interests
NON-CURRENT LIABILITIES:
Deferred income
Provisions
Bank borrowings and other financial liabilities
Other non-current payables
CURRENT LIABILITIES:
Bank borrowings and other financial liabilities
Trade and other payables
Tax payables
TOTAL EQUITY AND LIABILITIES
(*) The consolidated balance sheet for 2006 is presented for information purposes only.
The accompanying Notes 1 to 45 and the Appendix are an integral part of the consolidated balance sheet at 31 December 2007.
48
Note
2007
2006
541,352
24,994
504,165
(32,189)
82,168
(37,786)
87,550
628,902
518,535
24,994
493,165
(32,189)
77,565
(45,000)
89,701
608,236
22
2,076
18
21,029
20 127,413
23
41,603
24
42,770
234,891
2,617
33,285
43,507
42,063
45,120
166,592
20
25,117
19 246,698
25
31,287
303,102
10,749
240,384
29,251
280,384
17
1,166,895 1,055,212
VOCENTO, S.A.
AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS FOR THE YEARS ENDED
31 DECEMBER 2007 AND 2006 (*) (NOTES 1, 2, 3 AND 4)
Note
2007
Thousands of Euros
2006
Revenue
Group work on intangible assets
Other income
27
914,130
941
2,939
918,010
869,302
585
2,985
872,872
Procurements
28
(167,344)
(162,875)
(1,669)
2,441
29
30
(281,506)
(377,435)
(252,344)
(355,599)
9 y 10
(49,897)
(41,634)
PROFIT FROM OPERATIONS
Write-down of goodwill
Impairment/Reversal of impairment on other intangible assets
Results of companies accounted for using the equity method
Finance income
Finance costs
Net gain on disposal of non-current assets
Other profit and losses
8
9
11
31
32
33
34
40,159
(12,974)
(170)
48,076
4,802
(10,017)
207
333
62,861
(6,749)
150
43,140
9,086
(6,996)
1,608
(11,960)
PROFIT BEFORE TAX FROM CONTINUING OPERATIONS
Income tax on profit from continuing operations
24
70,416
(2,320)
91,140
(9,952)
7
68,096
21,430
81,188
1,379
17
89,526
(7,358)
82,567
(5,002)
82,168
77,565
0.66
0.49
0.17
0.63
0.62
0.01
Changes in operating allowances and other
Staff costs
Outside services
Depreciation and amortisation charge
NET PROFIT FOR THE YEAR FROM CONTINUING OPERATIONS
Profit for the year from discontinued operations
NET PROFIT FOR THE YEAR
Minority interests
NET PROFIT ATTRIBUTABLE TO THE PARENT
EARNINGS PER SHARE IN EUROS
From continuing operations
From discontinued operations
36
36
(*) The consolidated income statement for 2006 is presented for information purposes only.
The accompanying Notes 1 to 45 and the Appendix are an integral part of the consolidated income statement for the year ended 31 December 2007.
49
VOCENTO, S.A.
AND SUBSIDIARIES
CONSOLIDATED CASH FLOW STATEMENTS FOR THE YEARS
ENDED 31 DECEMBER 2007 AND 2006 (*)
Thousands of Euros
Note
2007
2006
60,738
7,358
76,186
5,002
49,897
12,974
(710)
(541)
(48,077)
10,017
(4,802)
2,320
(207)
41,634
6,749
4,585
(771)
(43,140)
6,996
(9,086)
9,952
(1,608)
88,967
(17,000)
(8,563)
10,477
(23,156)
(38,242)
50,725
96,499
(11,847)
(1,371)
(36,637)
(19,771)
(69,626)
26,873
Cash flows from investing activities:
Investments in intangible assets
9
Investments in property, plant and equipment
10
Increase/(Decrease) in payables to property, plant and equipment and intangible asset suppliers 19
Investments in subsidiaries and associates
8
Increase/(Decrease) in accounts payable due to acquisition of associates
Proceeds from the disposal of property, plant and equipment and intangible assets
Proceeds from the disposal of financial assets
Interest received
Dividends received
(20,662)
(41,824)
(1,947)
(141,087)
4,786
4,523
42,569
(10,375)
(28,409)
1,800
(121,776)
212
2,738
9,579
8,726
39,631
Net cash flows from investing activities (II)
(153,642)
(97,874)
(9,428)
78,691
11,787
(77,411)
-
(7,447)
(8,867)
(1,486)
(64,874)
(32,180)
3,639
(114,854)
(99,278)
652
114,931
26,740
43,045
(185,855)
13,287
287,499
114,931
CONSOLIDATED STATEMENTS OF CASH FLOWS FROM CONTINUING OPERATIONS
Cash flows from operating activities:
Profit for the year from continuing operations
Profit for the year attributable to minority interests
Adjustments forDepreciation and amortisation charge
Change in provisions
Change in deferred income
Results of companies accounted for using the equity method
Finance costs
Finance income
Income tax
Gain on disposal of non-current assets
Cash flows from ordinary operating activities before changes in working capital:
(Increase)/Decrease in trade and other receivables
(Increase)/Decrease in inventories
Increase/(Decrease) in current operating liabilities
Income taxes paid
9 and 10
8
18
22
11
32
31
24
33
15
14
19
Net cash flows from operating activities (I)
Cash flows from financing activities:
Interest paid
Cash inflows (outflows) relating to non-current bank borrowings
Cash inflows (outflows) relating to current bank borrowings
Dividends paid
Cash outflows due to acquisition of treasury shares
20
20
Net cash flows from financing activities (III)
Net increase in cash and cash equivalents from continuing operations (I+II+III)
Cash and cash equivalents contributed by the companies acquired
Cash and cash equivalents at beginning of year
Cash and cash equivalents from discontinued operations
Cash and cash equivalents at end of year
7
(*) The consolidated cash flow statement for 2006 is presented for information purposes only.
The accompanying Notes 1 to 45 and the Appendix are an integral part of the consolidated cash flow statement for the year ended 31 December 2007.
50
VOCENTO, S.A.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
THE YEARS ENDED 31 DECEMBER 2007 AND 2006 (*)
Thousands of Euros
Legal
reserve
of the
Parent
Share
capital
Balance at 1 January 2006
24,994
Share
premium
4,999
Other
reserves
of the
Parent
9,516
93,979
Of the Parent
Reserve for
revaluation of
unrealised Reserves at
assets and consolidated
liabilities
companies
-
317,630
Treasury
shares
(9)
Net profit
for the year
Interim
dividend
paid
Of minority
interests
61,534
Total
equity
102,881
(8,000)
607,524
- (102,881)
8,000
-
-
-
(9,874)
(9,874)
-
-
-
32,427
-
62,454
Dividends paid to minority interests
-
-
-
-
-
-
Final dividend
-
-
-
(17,000)
-
-
-
-
-
-
(17,000)
2006 interim dividend
-
-
-
-
-
-
-
-
(45,000)
-
(45,000)
Income and expenses recognised in reserves
-
-
-
(460)
605
-
-
-
-
99
244
Profit for the year
-
-
-
-
-
-
-
77,565
-
5,002
82,567
(32,180)
-
-
Treasury share acquisitions
-
-
-
-
-
-
(32,180)
-
-
-
Business combinations
-
-
-
-
-
5,436
-
-
-
33,031
38,467
Transactions with minority interests
-
-
-
-
-
(16,831)
-
-
-
56
(16,775)
Other
-
-
-
-
-
410
-
-
-
(147)
263
24,994
4,999
9,516
108,946
605
369,099
(32,189)
77,565
(45,000)
89,701
608,236
-
-
-
34,885
-
(2,320)
-
(77,565)
45,000
-
-
Dividends paid to minority interests
-
-
-
-
-
-
-
-
-
(11,451)
(11,451)
Final dividend
-
-
-
(13,173)
-
-
-
-
-
-
(13,173)
2007 interim dividend
-
-
-
-
-
-
-
-
(37,786)
-
(37,786)
Changes in hedging instruments
-
-
-
-
186
-
-
-
-
33
219
Profit for the year
-
-
-
-
-
-
-
82,168
-
7,358
89,526
Transactions with minority interests
-
-
-
-
-
(8,578)
-
-
-
1,909
(6,669)
24,994
4,999
9,516
130,658
791
358,201
(32,189)
82,168
(37,786)
87,550
628,902
(*) The consolidated statement of changes in equity for 2006 is presented for information purposes only.
The accompanying Notes 1 to 45 and the Appendix are an integral part of the consolidated statement of changes in equity for the year ended 31 December 2007.
51
VOCENTO, S.A.
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2007
1. GROUP ACTIVITIES
VOCENTO, S.A. was incorporated for an indefinite period of time on 28 June 1945. Its company objects per its bylaws are the publication, distribution
and sale of unitary publications, whether periodical or otherwise, dealing with general, cultural, sports, artistic and any other information, the printing
of such publications and the operation of printing workshops and, in general, any other activity related to the publishing and graphic arts industry; the
setting-up, use and operation of radio and television stations and any other facilities for the broadcasting, production and promotion of audiovisual
media, as well as the production, publishing and distribution of disks, cassettes, recorded tapes, films, programmes and any other devices or means of
communication of any type; the ownership, acquisition, sale and performance of acts of administration and disposal by any means of shares, securities
and investments in companies engaging in any of the aforementioned activities, and, in general, in any other activity directly or indirectly related to the
aforementioned activities which is not prohibited by the legislation currently in force.
All the activities making up the aforementioned company objects can be carried on both in Spain and abroad, and may be carried on, either totally or
partially, indirectly through the ownership of shares or other equity interests in companies with identical or similar company objects (see Notes 11, 12
and the Appendix).
At the Annual General Meeting held on 17 March 2001, the shareholders resolved to change the Company's name from Bilbao Editorial, S.A. to Grupo
Correo de Comunicación, S.A.
On 26 November 2001, as a result of the merger by absorption of Prensa Española, S.A., at the EGM the shareholders resolved to change the
Company’s name to Grupo Correo Prensa Española, S.A. Lastly, at the Annual General Meeting held on 29 May 2003, the shareholders resolved to
change the company’s name to VOCENTO, S.A. (the “Parent”).
The Parent's registered office is located in Madrid, at calle Juan Ignacio Luca de Tena, no. 7, and its tax domicile is located at Polígono Industrial de
Torrelarragoiti, Barrio de San Martín, Zamudio, Vizcaya.
In view of the activities carried on by the VOCENTO, S.A. and Subsidiaries (the “Group” or “VOCENTO”), it does not have any environmental liability,
expenses, assets, provisions or contingencies that might be material with respect to its equity, financial position or results. Therefore, no specific
disclosures relating to environmental issues are included in these notes to the consolidated financial statements.
2. BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS
AND BASIS OF CONSOLIDATION
a. Accounting standards applied
The Group's consolidated financial statements for 2007, which were prepared from the accounting records kept by the Parent and by the other Group
companies, were formally prepared by the directors of the Parent in accordance with International Financial Reporting Standards (“IFRSs”) as approved
by the European Union, pursuant to Law 62/2003, of 30 December (see Note 44).
These financial statements were prepared in accordance with IFRSs, taking into account all the mandatory accounting policies and rules and
measurement bases, so that they present fairly VOCENTO’s consolidated equity and financial position at 31 December 2007, and the results of its
operations, the changes in consolidated equity and the consolidated cash flows in the year then ended.
52
However, since the accounting policies and measurement bases used in preparing the Group's consolidated financial statements for 2007 may differ
from those used by certain Group companies, the required adjustments and reclassifications were made on consolidation to unify the policies and bases
used and make them compliant with International Financial Reporting Standards.
In order to uniformly present the various items composing the consolidated financial statements, the policies and measurement bases used by the
Parent were applied to all the consolidated companies.
The Group's consolidated financial statements for 2006 were approved by the shareholders at the Annual General Meeting on 25 April 2007.
The 2007 consolidated financial statements of the Group and the 2007 financial statements of the Group companies have not yet been approved by
their shareholders at the respective Annual General Meetings. However, the Parent's directors consider that the aforementioned financial statements
will be approved without any changes.
IFRSs permit certain alternative treatments in their application, which include most notably the following:
i. Interests in joint ventures may be proportionally consolidated or accounted for using the equity method, using the same policy for all interests
in joint ventures held by the Group.
In 2007 the Group decided to change the consolidation method for all the companies over which control is shared with the other shareholders
to the proportional consolidation method (see Note 12), as described in Note 2-d.
ii. Both intangible assets and the assets recognised under “Non-Current Assets - Property, Plant and Equipment” may be measured at market
value or acquisition cost adjusted for any accumulated amortisation or depreciation and any accumulated impairment losses.
The Group opted to recognise the aforementioned assets at adjusted acquisition cost.
iii. Grants related to assets may be recognised by deducting from the carrying amount of an asset the amount of the grants related to assets
received to acquire it or as deferred income on the liability side of the balance sheet.
The Group opted for the latter option.
iv. It was decided not to reconstruct business combinations prior to 1 January 2004.
b. Adoption of the new standards and interpretations issued
Standards and interpretations in force in 2007
In 2007 the Group adopted IFRS 7 “Financial Instruments: Disclosure”, which came into force on 1 January 2007 for the years beginning on or after
that date, and the amendments to IAS 1 “Presentation of Financial Statements” in relation to capital disclosures.
As a result of the adoption of IFRS 7 and the amendments to IAS 1, the qualitative and quantitative disclosures of financial instruments and capital
management detailed in Notes 4-g, 4-h, 6, 13, 20 and 21 to the consolidated financial statements were amplified.
Additionally, four IFRIC interpretations became effective for the first time this year: IFRIC 7 “Applying the Restatement Approach” under IAS 29
“Financial Reporting in Hyperinflationary Economies”; IFRIC 8 “Scope of IFRS 2”; IFRIC 9 “Reassessment of Embedded Derivatives” and IFRIC 10
“Interim Financial Reporting and Impairment”. The adoption of these interpretations did not have an impact on the Group’s consolidated financial
statements.
53
Standards and interpretations issued but not in force
At the date of preparation of these financial statements, the following standards and interpretations had been published by the IASB (International
Accounting Standards Board) but had not come into force, either because their effective date is subsequent to the date of the consolidated financial
statements or because they had not yet been adopted by the European Union:
• IFRS 8 “Operating Segments"
This standard replaces IAS 14. The main new development introduced by this new standard is that it requires an entity to adopt a management
approach when reporting on the financial performance of its business segments. The information to be reported will generally be that used internally
by management to assess the profit or loss of the segments and to allocate resources among them. The directors have not yet assessed the impact that
the application of this standard will have on the accompanying consolidated financial statements although they consider that it will not be significant.
• Revision of IAS 23 “Borrowing Costs”
The main change in this new revised version of IAS 23 is the elimination of the option to immediately recognise as an expense the borrowing costs
relating to assets that take a substantial period of time to become prepared for use or sale. This new standard may be applied prospectively. The
directors consider that the entry into force of this standard will not have an impact on the consolidated financial statements since it does not involve a
change in policy given that the capitalisation of borrowing costs is the accounting policy already used by the Group (see Note 4-c).
• Review of IAS 1 "Presentation of Financial Statements”
The purpose of the new version of this standard it to improve users’ capacity to analyse and compare the information provided in financial statements.
These improvements will enable users of consolidated financial statements to analyse changes in equity arising from transactions with owners acting in
their capacity as such (e.g. dividends and share buy-backs) separately from changes arising from transactions with non-owner (e.g. transactions with
third parties or income and expenses recognised directly in equity). The revised standard provides the option of presenting income and expense items
and components of other comprehensive income either in a single statement of comprehensive income with subtotals or in two separate statements (a
separate statement of income followed by a statement of comprehensive income).
IAS 1 also introduces new reporting requirements when the entity applies an accounting change retrospectively, makes a restatement or reclassifies
items in previously issued financial statements, or makes changes in the names of certain financial statements with a view to reflecting their function
more clearly (e.g. the balance sheet will be called the statement of financial position).
The impacts of this standard will basically be at presentation and disclosure level. In the case of the Group, since it does not regularly present a
statement of recognised income and expense, the new standard will give rise to the inclusion of this new financial statement in the financial
statements.
• Revision of IFRS 3 “Business Combinations” and amendment to IAS 27 “Consolidated and Separate Financial Statements".
These standards were issued as a result of the project for the convergence of international principles relating to business combinations with US
accounting standards. The revised IFRS 3 and the amendments to IAS 27 give rise to very significant changes in several matters relating to the
accounting of business combinations which, in general, place greater emphasis on the use of fair value. Given that the standard may be applied
prospectively, in general, the directors do not expect significant modifications to arise in connection with the business combinations performed.
However, given the changes in the standard, the directors have not yet assessed the possible impact that the changes in the standard may have on
future business combinations and the respective effects on the consolidated financial statements.
• Amendment to IFRS 2 “Share-based Payment”
The objective of the amendment to IFRS 2 is basically to clarify in the standard the concepts of vesting conditions and cancellations in share-based
payments. The Group’s directors consider that the entry into force of this amendment will not have a significant effect on the consolidated financial
statements.
• IFRIC 11 IFRS 2 “Group and Treasury Share Transactions”
This interpretation addresses how to apply IFRS 2 “Share-based Payment” to share-based payment arrangements involving an entity’s own equity
instruments or equity instruments of another entity in the same group. The directors consider that the entry into force of this Standard will not have a
significant impact on the Group’s consolidated financial statements.
54
• IFRIC 14 IAS 19 – “The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction”
IFRIC 14 provides general guidance on how to assess the limit in IAS 19 “Employee Benefits” on the amount of the surplus that may be recognised as
an asset. It also explains how pension assets or liabilities may be affected when there is a statutory or contractual minimum funding requirement and
establishes that the entity only needs to recognise an additional liability if it has a contractual obligation to make additional contributions to the plan
and its capacity to recover them is restricted. The interpretation will standardise the practice and ensure that the entities recognise an asset in relation
to a surplus on a consistent basis. The directors consider that the entry into force of this standard will not have a significant impact on the consolidated
financial statements.
c. Public offering
On 23 May 2006, the Parent's directors resolved:
• To request admission to official listing of all the Company's shares on the Bilbao, Madrid, Barcelona and Valencia Stock Markets and on the
continuous market (Spanish computerised trading system).
• To launch a public offering of the Group's shares.
The process was completed on 8 November 2006 with the admission to public listing of the Parent's shares.
The cost of the public offering amounted to approximately EUR 12,642 thousand. EUR 11,960 thousand of this amount is recognised under “Other
Profit and Losses” in the accompanying 2006 consolidated income statement (see Note 34), and EUR 460 thousand is recognised under “Reserves” in
the accompanying consolidated balance sheet for 2006, net of the related tax effect.
“Other Profit and Losses” in the accompanying 2006 consolidated income statement also includes EUR 3,500 thousand relating to the discounted
value of the annuity income granted to the previous Chairman of the Board of Directors as a result of the admission to listing of VOCENTO, S.A.'s
shares (see Notes 4-j and 18). In 2007 the aforementioned annuity income was paid in a final lump sum of EUR 3,167 thousand. Consequently, “Other
Profit and Losses” (see Note 34) in the accompanying consolidated income statement for 2007 includes income of EUR 333 thousand arising from the
difference between the projected amount and the final amount paid.
d. Basis of consolidation
The subsidiaries over which the Group exercises control were fully consolidated.
The Group considers that it exercises control over a company when it has sufficient power to establish the financial and operating policies thereof so as
to obtain benefits from its activities.
In 2007 the jointly controlled entities managed by the Group together with other companies were proportionally consolidated, the method considered
by the directors to most fairly reflect the joint control of the aforementioned companies (see Notes 2-a and 12).
In accordance with IAS 8, the Group adjusted the opening balance of each affected component of equity for the earliest preceding period presented,
and the other comparative amounts disclosed for each preceding period were presented as if the new accounting policy had always been applied. The
consolidated balance sheet at 31 December 2006 and the consolidated income statement for 2006 were modified accordingly.
The companies not included in the preceding paragraphs over which one or several Group companies exercise significant influence are accounted for
using the equity method, except when they are classified as being held for sale.
Significant influence is deemed to exist when the power to participate in the financial and operating decisions of an investee is held. Significant
influence is presumed to exist when an interest of at least 20% is held. However, the ownership interest in Gestevisión Telecinco, S.A. (see Note 11),
which at 31 December 2007 and 2006 was 13%, was accounted for using the equity method since a shareholders' agreement exists with the majority
shareholder affording the Group certain rights indicative of a lasting relationship that contributes to the activity of the associate, and of a notable
influence over management. In 2006 the Group acquired an ownership interest of 26.68% of the share capital of Autocasión Hoy, S.A. (formerly Maxi
55
Press Comunicación, S.A.).This ownership interest was increased to 50.01% in 2007 (see Notes 2-e and 17) and had already been fully consolidated
under the shareholders' agreement that granted control to VOCENTO.
The Appendix to the consolidated financial statements includes a detail of the subsidiaries, jointly-controlled entities and associates.
The Group's transactions were consolidated in accordance with the following basic principles:
1. On the acquisition date the assets, liabilities and contingent liabilities of a subsidiary are measured at their fair values. Any excess of the cost of
acquisition of the subsidiary over the fair values of the aforementioned assets and liabilities relating to the Group's ownership interest in the
subsidiary is recognised as goodwill.
Any deficiency of the cost of acquisition below the fair values of the assets and liabilities is recognised with a credit to the consolidated income
statement.
The results of subsidiaries acquired or disposed of in the year are included in the consolidated financial statements from their effective date of
acquisition or until the effective date of disposal.
2. Although goodwill arising on business combinations is not amortised, it is reviewed at least once a year in order to ascertain whether an
impairment loss should be recognised.
3. Purchases and sales of minority interests in companies that are and continue to be subsidiaries both prior and subsequent to the aforementioned
transactions are considered to be transactions between shareholders and, therefore, the payments made will be recognised in the Group's equity
(see Note 17).
4. The result of accounting for ownership interests using the equity method (after eliminating results on intra-Group transactions) is reflected under
"Equity - Reserves" and “Results of Companies Accounted for Using the Equity Method” in the accompanying consolidated balance sheet and
consolidated income statement, respectively. The equity method consists of initially recognising the investment at cost and subsequently
adjusting it, based on the changes in the portion of the entity's net assets that corresponds to the investor, recognising in the investor's profit or
loss the corresponding portion of the investee's result for the year.
5. The share of minority interests in the equity and in the profit or loss of fully consolidated subsidiaries is presented under the headings "Equity Of Minority Interests" on the liability side of the consolidated balance sheet and "Minority Interests" in the consolidated income statement,
respectively.
6. The financial statements of foreign entities were translated to euros by applying the year-end exchange method. Under this method, all the
assets, rights and obligations are translated to euros using the exchange rates prevailing at the date of the consolidated financial statements,
whereas the consolidated income statement items are translated at the average exchange rate for the year and equity continues to be
recognised at the historical exchange rates at the date of acquisition (or the average exchange rate in the year of origin in the case of retained
earnings, provided that there are no significant transactions that make the use of the average exchange rates inappropriate).
7. All balances and transactions between fully or proportionately consolidated companies were eliminated on consolidation.
56
e. Changes in the scope of consolidation
The percentages of ownership in other companies at 31 December 2007 and 2006 were as follows:
Percentage of direct
and indirect ownership
Percentage of control (*)
Company
31/12/07
31/12/06
31/12/07
31/12/06
Printed media
Factoría de Información, S.A.
100.00%
-
100.00%
-
Audiovisual
Jaizkibel Telebista, S.L.
Sociedad Gestora de Televisión NET TV, S.A.
Canal Bilbovisión Margen Derecha, S.L.
Canal Bilbovisión Margen Izquierda, S.L.
Veralia Servicios de Producción Audiovisual, S.L.
Bocaboca Producciones, S.L.
Radio Difusión Torre, S.A.
Europroducciones TV, S.L.
75.81%
69.93%
95.48%
95.48%
47.04%
85.00%
40.80%
85.00%
80.78%
53.22%
46.04%
59.50%
29.28%
79.72%
100.00%
70.27%
100.00%
100.00%
79.84%
100.00%
79.31%
100.00%
95.03%
70.27%
78.14%
70.00%
51.00%
93.79%
Internet
Autocasión Hoy, S.A. (formerly Maxi Press Comunicación, S.A.)
50.01%
26.68%
50.01%
26.68%
Other businesses
CIMECO
Gourmet Plus Bilbao, S.L.
100.00%
35.72%
50.00%
30.00%
33.33%
-
100.00%
35.72%
50.00%
30.00%
33.33%
-
Structure
Pantalla Digital, S.L.
Comercializadora Multimedia de Cantabria, S.L.
100.00%
85.91%
74.78%
-
100.00%
100.00%
74.78%
-
(*) This percentage refers to the direct percentage held by the Group company of which it is a subsidiary.
3. APPLICABLE LEGISLATION
Television
The Law accompanying the 2003 Budget Law established the individuals or legal entities that own, directly or indirectly, 5% or more of the share capital
or voting power of a public television service concession operator may not hold significant ownership interests in any other public television service
concession operator that has the same range of coverage within the same franchise area. The Group holds significant ownership interests in
Gestevisión Telecinco, S.A. (see Note 11) and Sociedad Gestora de Televisión Net TV, S.A., which both provide national coverage, the former with an
analogue TV licence and the latter with a digital terrestrial licence.
Law 10/2005, of 14 June, on urgent measures to foster digital terrestrial television, amended the private television channel law, making it possible to
simultaneously own investments in a concession holder that broadcasts an analogue signal and in another that uses exclusively digital broadcasting
technology, until the so-called analogical blackout, which means that until then the Group is not in a situation of legal incompatibility due to its
ownership interests in Gestevisión Telecinco, S.A. and Sociedad Gestora de Televisión NET TV, S.A.
57
The local television broadcasting activities carried on by certain Group companies are regulated by Law 41/1995, of 22 December, on Local Television
Broadcasting by Means of Terrestrial Waves and by General Telecommunications Law 32/2003, of 3 November. Pursuant to these Laws, the relevant
concession must be obtained in order to provide local television services by means of terrestrial waves.
The procedures for reserving and assigning frequencies were established in Royal Decree 439/2004, of 12 March, which approved the Spanish National
Technical Plan for local digital television, subsequently revised by Law 10/2005 on urgent measures to foster digital terrestrial television and Royal
Decree 944/2005, of 29 June, which approved a new Technical Plan for digital terrestrial television. In any case, the Autonomous Community
Governments will implement, within the scope of their powers, the regulations that will provide for the procedures for the assignment of the Local
Television Service, establishing the necessary requirements and formalities.
Of special note is the fact that the local television channels that obtain the appropriate licence will be able to continue broadcasting using analogue
technology until 31 December 2008, provided that they are subject to the Single Transitional Provision of Law 41/1995, or, by the same token, that they
were broadcasting prior to 1 January 1995. The deadline for all the Autonomous Community Governments to hold calls for tender and award
concessions for local digital television was 30 June 2006, which was not met by certain Autonomous Community Governments. However, the Central
Government is empowered to change the date of 31 December 2008 on the basis of the stage of development and penetration of digital terrestrial
wave television broadcasting technology.
At the date of preparation of these consolidated financial statements, a tender was called to award concessions for local digital terrestrial television in
all the Autonomous Communities except Castilla y León and Castilla-La Mancha, and a decision has yet to be taken in Cantabria, the Canary Islands
and Andalucía.
VOCENTO is present in the world of Digital Terrestrial Television (DTT) on an autonomous (A) or local (L) scale in: Madrid (A), Valencia (A), Murcia (A),
La Rioja (A), Barcelona (L), Gijón (L), Oviedo (L), Avilés (L) and in 12 local franchise areas in the Basque country, including Bilbao, San Sebastián and
Vitoria-Gasteiz.
Radio
To identify the legislation applicable to radio broadcasting, a distinction must be drawn between the basic legislation applicable to both digital and
analogue radio and the specific regulations governing digital and analogue radio broadcasting.
1. Basic legislation common to digital and analogue radio:
a. Articles 25, 26, 36.2 and Additional Provision Six of Telecommunications Law 31/1987, of 18 December 1987.
b. General Telecommunications Law 32/2003, of 3 November.
Basic legislation applicable to analogue and digital radio, i.e. the Spanish National Technical Plans:
a. Royal-Decree 765/1993, of 21 May, approving the Spanish National Technical Plan for MW radio broadcasting (Hectometrics).
b. Royal-Decree 1287/1999, of 23 July, regulating the Spanish National Technical Plan for digital terrestrial radio broadcasting.
c. Resolution of the Secretariat of Telecommunications and the Information Society, of 23 April 2002, amending the technical characteristics of
certain radio stations of the Spanish National Technical Plan for MW radio broadcasting.
d. Royal-Decree 964/2006, of 1 September, approving the Spanish National Technical Plan for FM radio broadcasting.
2. Specific analogue radio legislation: the various Autonomous Community Government Decrees regulating the concession system for the FM radio
broadcasting public service.
58
3. Specific digital radio legislation: Order of 23 July 1999 regulating the Technical Regulations for the provision of digital terrestrial radio broadcasting
services and Additional Provision Forty-four of Law 66/1997, of 30 December, on Tax, Administrative, Labour and Social Security Measures.
The Group holds two national digital radio licences through E-Media Punto Radio, S.A.U. and Corporación de Medios Radiofónicos Digitales, S.A., with
and without local programming respectively, for which it submitted guarantees securing the fulfilment of certain obligations (see Note 41). Given the
scant development of the technology, the directors consider that certain risks exist in relation to the obligations assumed and, therefore, the Group has
recorded a provision of EUR 4,858 thousand in this connection (see Note 18).
Also, the Group holds various analogue radio broadcasting licences. These licences are used to broadcast the programmes of the Group's radio station
under the trade name of “Punto Radio”. In order to broadcast in areas in which the Group does not hold the related licence, association agreements
have been signed with licence holders in these areas.
4. ACCOUNTING POLICIES
The principal accounting policies used in preparing the consolidated financial statements were as follows:
a. Goodwill
Goodwill arising on consolidation represents the difference between the price paid in acquiring the fully consolidated subsidiaries and the portion
corresponding to the Group's share of the market value of the items making up the net assets of those companies at the date of acquisition. If the
acquisition cost is subject to future variables, the changes in these variables modify goodwill. Goodwill arising in the acquisition of companies with a
functional currency other than the euro is translated to euros at the exchange rates prevailing at the date of the consolidated balance sheet.
Goodwill is only recognised when it has been acquired for consideration and represents, therefore, a payment made by the acquirer in anticipation of
future economic benefits from assets of the acquired company that are not capable of being individually identified and separately recognised.
At the end of each reporting period, goodwill is reviewed for impairment (i.e. a reduction in its recoverable amount below its carrying amount) and
impairment is written down with a charge to “Write-down of Goodwill” in the consolidated income statement (see Note 8). Impairment losses for
goodwill may not be reversed.
b. Other intangible assets
The measurement basis used for the various items making up the heading “Non-Current Assets - Intangible Assets - Other Intangible Assets” in the
consolidated balance sheet (see Note 9) and the related amortisation methods were as follows:
Intellectual property
• Trademarks
These assets are measured at the amounts actually paid for the acquisition of title to or the right to use trademarks, and they are amortised on a
straight-line basis over their estimated useful lives.
Computer software
This account includes the cost of acquiring, installing and licensing the computer software acquired, whose amortisation over the estimated period of
use begins when it comes into service.
Computer system maintenance costs are recognised with a charge to the consolidated income statement for the year in which they are incurred.
The amount charged to expenses as amortisation of other intangible assets is recognised under the heading "Depreciation and Amortisation Charge"
in the consolidated income statement.
59
Film scripts and productions
• Film productions
The costs incurred by the Group in the making of audiovisual productions are recognised as intangible assets. They are measured at production
cost, less, where appropriate, the non-refundable contributions of co-producers. Production overheads are recognised under "Other Intangible
Assets - Film Productions in Progress" in the consolidated balance sheet with a credit to "Group Work on Intangible Assets" in the consolidated
income statement.
The cost of finished productions is amortised on a straight-line basis over three years, since this is considered to be the approximate period over
which these productions will generate income, from the time they are ready to generate economic benefits.
• Film scripts
This account includes the amounts capitalised at acquisition cost in connection with the expenses incurred in the analysis and development of
new projects. The scripts can be acquired or produced internally. In the first case they are measured at the cost of acquisition and in the second
they are measured as explained in the section "Other Internally Generated Intangible Assets - Research and Development Expenditure". In both
cases they are amortised over their estimated useful lives.
Other internally generated intangible assets - Research and development expenditure
Expenditure on research activities is recognised as an expense in the year in which it is incurred.
Development expenditure is recognised as an internally generated intangible asset by the Group only if the following conditions are met:
· the asset created can be identified;
· it is probable that the asset created will generate future economic benefits; and
· the development cost of the asset can be measured reliably.
Internally generated intangible assets are amortised over their useful lives. When development expenditure cannot be considered to constitute an
intangible asset it is recognised as an expense in the year in which it is incurred.
Film distribution rights
• Television distribution
These costs are recognised as intangible assets and are amortised in accordance with the expected pattern of consumption of the future
economic benefits arising from such rights.
• Cinema and DVD distribution
These costs are recognised under “Trade and Other Receivables - Other Accounts Receivable” (see Note 15), since the period over which such
costs will generate income and, therefore, the period over which they will be allocated to expense is less than one year, and they are allocated to
the consolidated income statement in accordance with the agreements signed with the producers.
c. Property, plant and equipment
Property, plant and equipment are stated at cost, which includes, in addition to their purchase price, non-recoverable indirect taxes and any other costs
related directly to the entry into service of the asset for its intended use (including interest and other borrowing costs incurred during the construction
period).
In accordance with the exceptions permitted under IFRS 1, certain items acquired prior to 1 January 2004 are measured at cost revalued in accordance
with the applicable legislation (see Note 10).
60
The costs of expansion, modernisation or improvements leading to increased productivity, capacity or efficiency or to a lengthening of the useful life of
the assets are capitalised.
Period upkeep and maintenance expenses are charged to the consolidated income statement.
The Group depreciates its property, plant and equipment by the straight-line method at rates based on their estimated useful life (see Note 5).
“Plant and Machinery” includes EUR 5,545 thousand relating to the historical and artistic heritage of Diario ABC, S.L., composed of its graphic and
documentary archive and a collection of paintings and sketches by artists who contributed to the publications ABC and Blanco y Negro. In the opinion
of the specialists consulted, this historical and artistic heritage has not suffered any effective impairment and, therefore, it is not depreciated. The fair
value of this heritage is higher than the amount recognised in the consolidated balance sheet.
The property, plant and equipment depreciation charge for 2007 and 2006 is recognised under "Depreciation and Amortisation Charge" in the
accompanying consolidated income statements.
d. Impairment of assets excluding goodwill
At each balance-sheet date, the Group reviews the carrying amounts of its non-current assets to determine whether there is any indication that those
assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent
of the impairment loss (if any). For such purposes, in the case of an identifiable asset that itself does not generate cash flows that are independent from
other assets, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use, which is considered to be the present value of the estimated future
cash flows. In assessing value in use, the assumptions used in making the estimates include pre-tax discount rates, growth rates and expected changes
in selling prices and costs. The directors of the Parent estimate pre-tax discount rates which reflect the time value of money and the risks specific to the
cash-generating unit. The growth rates and the changes in selling prices and costs are based on in-house and industry forecasts and experience and
future expectations, respectively.
If the recoverable amount of an asset is less than its carrying amount, an impairment loss is recognised for the difference with a charge to the
consolidated income statement.
Impairment losses recognised on an asset in prior years are reversed when there is a change in the estimate of its recoverable amount, and the
maximum value of the asset is increased up to the carrying amount that would have resulted had no impairment loss been recognised.
e. Leases
The Group classifies as finance leases the lease contracts which transfer substantially all the risks and advantages derived from ownership to the lessee.
All other leases are classified as operating leases.
Assets held under finance leases are recognised in the non-current asset category that corresponds to their nature and function. Each asset is
depreciated over its useful life since the Group considers that there are no doubts that title to the assets will be acquired at the end of the finance lease
term. They are recognised at the lower of the leased asset's fair value and the present value of future payments arising from the finance lease
transaction, with a credit to “Bank Borrowings and Other Financial Liabilities” in the consolidated balance sheet. “Property, Plant and Equipment” in
the accompanying consolidated balance sheets at 31 December 2007 and 2006 (see Note 10) include EUR 13,554 thousand and EUR 834 thousand,
respectively, relating to assets held under finance leases.
The finance costs of the finance leases are recognised in the income statement, except when they are directly attributable to a qualifying asset, in which
case they are recognised at the increased value of the asset financed by the finance lease (see Note 10).
Expenses arising on operating leases are allocated to “Outside Services” (see Note 30) in the consolidated income statement over the term of the lease
on an accrual basis.
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f. Inventories
Inventories, mainly paper for printing the related newspapers, are stated at the lower of FIFO and net realisable value. Trade discounts, rebates and
other similar items are deducted from the acquisition cost.
The rebates recognised in profit or loss are classified under “Change in Operating Allowances and Other” in the consolidated income statement.
g. Financial instruments
Financial assets
Financial assets are initially recognised at acquisition cost, including transaction costs.
The Group classifies its financial assets, whether current or non-current, in the following four categories:
• Held-for-trading financial assets. These assets meet any of the following conditions:
· The Group expects to obtain a profit from short-term fluctuations in their prices.
· They have been included in this category of assets since their initial recognition, provided that they are either listed on an active market or
their fair value can be estimated reliably.
The financial assets included in this category are measured in the consolidated balance sheet at fair value and changes in fair value are recognised
under “Finance Costs” and “Finance Income”, as appropriate, in the consolidated income statement.
The Group includes in this category derivative financial instruments that do not qualify for hedge accounting, as established by IAS 39 – “Financial
Instruments”.
At 31 December 2007 and 2006, the Group did not have any financial assets of this nature.
• Held-to-maturity investments. These are financial assets with fixed or determinable payments and fixed maturity which the Group intends to hold
until the date of maturity. The assets included in this category are measured at amortised cost, and the interest income is recognised in profit or
loss on the basis of the effective interest rate. The assets are also tested for impairment. The amortised cost is understood to be the initial cost
minus principal repayments, plus or minus the cumulative amortisation of any difference between the initial amount and the maturity amount,
and minus any reduction for impairment or uncollectibility. The effective interest rate is the discount rate that, at the date of acquisition of the
asset, exactly matches the initial carrying amount of a financial instrument to all its estimated cash flows of all kinds through its residual life.
At 31 December 2007 and 2006, the Group did not have any financial assets of this nature.
• Loans and receivables. These are financial assets originated by the companies in exchange for supplying cash, goods or services directly to a
debtor. The assets included in this category are also measured at amortised cost and are tested for impairment.
The Group analyses the solvency of its customers before extending credit to them. It also monitors trade receivables closely in order to identify
collection problems, and reduces the carrying amount of the accounts to their recoverable amount in the event of doubtful debts.
62
• Available-for-sale financial assets. These are financial assets not classified in any of the aforementioned three categories, nearly all of which relate
to equity investments. These investments are measured in the consolidated balance sheet at their fair value, which, in the case of unlisted
companies, is obtained using alternative methods such as comparison with similar transactions or, if sufficient information is available,
discounting the expected cash flows. Changes in fair value are recognised with a charge or a credit to “Equity - Reserves” in the consolidated
balance sheet until the asset is disposed of, at which time the cumulative balance of this heading relating to the asset disposed of is recognised
in full in the consolidated income statement.
Equity investments in unlisted companies whose market value cannot be reliably measured are measured at acquisition cost.
Group management determines the most suitable classification for each asset on acquisition, which is reviewed at each year-end.
Financial liabilities and equity
Financial liabilities and equity instruments are classified in accordance with the content of the contractual arrangements. An equity instrument is any
contract that evidences a residual interest in the net assets of the Group. The main financial liabilities held by the Group are held-to-maturity financial
liabilities that are measured at amortised cost.
This heading in the consolidated balance sheet includes cash, current accounts and other short-term, highly liquid investments that are not subject to
any risk of changes in value (see Note 16).
Debentures, bonds and bank borrowings
Interest-bearing loans, debentures and similar liabilities are initially recognised for the proceeds received, net of direct issue costs, under “Bank
Borrowings and Other Financial Liabilities” in the consolidated balance sheet (see Note 20). Finance charges are recognised in the consolidated income
statement on an accrual basis using the effective interest method and are added to the carrying amount of the instrument to the extent that they are
not settled in the period in which they arise. Also, payables under finance lease agreements are recognised at the present value of the lease payments
under the same heading.
Trade payables
Trade payables are initially recognised at fair value and are subsequently measured at amortised cost using the effective interest rate (see Note 19).
h. Financial derivatives and hedge accounting
The financial derivatives held by VOCENTO relate to hedges aimed at mitigating the Group's exposure to foreign exchange and interest rate risk. The
Group uses interest rate hedging contracts, mainly interest rate swaps (IRSs) and forward exchange contracts. The Group does not use derivative
financial instruments for speculative purposes.
They are initially recognised as assets or liabilities at cost of acquisition in the consolidated balance sheet and the necessary valuation adjustments are
subsequently made to reflect their fair value at all times (see Note 21).
• Fair value hedges
In the case of fair value hedges, changes in the fair value of the derivative financial instruments designated as hedges and the changes in the fair value
of the hedged item caused by the risk hedged are recognised with a charge or credit, as appropriate, to the consolidated income statement, so that
“Finance Income” and “Finance Costs” include simultaneously the income or expense from the hedged item and the hedging instrument, respectively.
63
• Cash flow hedges
In the case of cash flow hedges, the changes in the fair value of the hedging derivatives are recognised, in respect of the ineffective portion of the
hedges, in the consolidated income statement, and the effective portion is recognised under “Reserves” in the consolidated balance sheet.
When hedge accounting is discontinued, any cumulative gain or loss on the hedging instrument recognised at that date under “Reserves” is retained
under this heading until the hedged transaction occurs, at which time the gain or loss on the transaction is adjusted. If a hedged transaction is no
longer expected to occur, the gain or loss recognised under the aforementioned heading is transferred to profit or loss. The VOCENTO Group
periodically tests the effectiveness of its hedges, and the related tests are performed prospectively and retrospectively.
The market value of the derivative financial instruments is calculated as follows:
· The market value of derivatives quoted on an organised market is their market price at year-end.
· The Group values derivatives that are not traded on an organised market on the basis of assumptions based on market conditions at year-end.
Specifically, the fair value of interest rate swaps is calculated by discounting at a market interest rate the difference between the swap rates, and
the market value of foreign currency forward contracts is determined by discounting the estimated future cash flows using the forward rates
existing at year-end. This procedure is also used, where appropriate, to determine the fair value of loans and receivables.
i. Current/Non-current classification
In the accompanying consolidated balance sheet, assets and liabilities maturing within 12 months are classified as current items and those maturing
within more than 12 months are classified as non-current items.
j. Pension and similar obligations
At 31 December 2007, the Group had externalised all its pension obligations to its employees, in accordance with Royal-Decree 1588/1999, of 15
October. The detail of these obligations, which are both defined benefit and defined contribution obligations, is as follows:
Defined benefit
The main defined benefit obligations assumed by the Group involve the supplementation of retirement and/or death of spouse pensions for its
employees.
These obligations are covered through insurance policies, in accordance with the related actuarial studies, performed on a case-by-case basis using,
among other assumptions, an assumed interest rate of between 3% and 4.5%, GRM/F - 95 and PERM/F2000P mortality tables and a long-term annual
salary increase rate of approximately 3%.
Defined contribution
The detail of the main defined contribution obligations assumed by the Group is as follows:
· For the Group's executives, an annual fixed amount is to be contributed on the basis of previously defined categories. For each year the Group
reserves the right to determine whether or not the relevant contributions will be made. This obligation is instrumented through an insurance policy.
· For certain Group employees, a percentage of the pensionable salary of each eligible employee is to be contributed to a pension plan. Employees
hired after 9 May 2000 are subject to a two-year waiting period before they can decide whether or not to join the pension plan.
64
The mathematical provisions assigned to these obligations at 31 December 2007 and 2006, amounted to EUR 27,713 thousand and EUR 23,522
thousand, respectively, which, in the opinion of the directors, constitute a similar amount to that of the related insurance policy funds. The expense in
2007 and 2006 for all these obligations amounted to EUR 2,080 thousand and EUR 2,672 thousand, respectively, and is recognised under “Staff Costs”
in the accompanying consolidated income statements for 2007 and 2006 (see Note 29).
Other obligations
· The collective labour agreements of certain Group companies establish the obligation to pay certain long-service bonuses to their employees on
completion of 20, 30 and 40 years of service at the company. At 31 December 2007 and 2006, to cover the liability incurred in this connection,
the Group recognised provisions, which were calculated based on actuarial criteria using, among other assumptions, an assumed interest rate of
2.25%, GRM/F95 mortality tables and a long-term salary growth rate of 3.5%, amounting to approximately EUR 3,812 thousand and EUR 5,270
thousand, respectively, under “Provisions” on the liability side of the accompanying consolidated balance sheets (see Note 18). The period
provisions to cover these obligations were made with a charge to “Staff Costs” in the accompanying consolidated income statements for 2007
and 2006 for the amount of EUR 345 thousand and EUR 394 thousand, respectively (see Note 29).
· The collective labour agreement entered into in 2007 by the subsidiary Diario El Correo, S.A.U., which was formerly subject to this obligation,
does not provide for the obligation to pay long-service bonuses to its employees on completion of 20, 30 and 40 years of service, as established
in prior agreements. In 2007 an agreement was reached with the Workers’ Committee pursuant to which the aforementioned long-service bonus
was frozen. The bonus accrued at 31 December 2006 was calculated and each employee was notified of the option to receive the bonus as a
lump sum or to convert it into an initial contribution to an externalised defined contribution pension plan. The employees indicated the option of
their choice in signed notification letters and as a result bonuses amounting to EUR 207 thousand were surrendered and initial contributions of
EUR 92 thousand were made to the aforementioned pension plan.
· Also, in accordance with the collective labour agreements in force at the time of their retirement, an obligation exists with the former employees
of Prensa Española, S.A. (see Note 1) which is maintained on the same terms. These obligations were guaranteed through a group insurance
policy taken out in 2000 (see Note 23).
k. Treasury shares of the Parent
All the shares of the Parent held by consolidated companies are recognised at acquisition cost and are presented as a reduction of “Equity - Treasury
Shares” in the consolidated balance sheet (see Note 17).
As a result of the admission to listing of the Company’s shares, which was completed on 8 November 2006 (see Note 2-c), the Parent acquired
11,910,127 treasury shares, with a view to launching a public offering at a price of EUR 14 per share. On completion of the public offering and the
corresponding settlement, the Parent held the equivalent of 1.78% of its share capital, with an acquisition cost of EUR 14.47 per share, which may be
freely transferred.
In 2007 the Group did not carry out any transactions involving treasury shares of the Parent. The directors of the Parent have stated that the shares will
be sold at short term, provided that favourable market conditions exist favourable for such a transaction.
l. Other provisions
A distinction is drawn between:
• Provisions: present obligations at the balance sheet date arising from past events which are uncertain as to their amount and/or timing.
• Contingent liabilities: possible obligations that arise from past events and whose existence will be confirmed only by the occurrence or nonoccurrence of one or more future events beyond the control of the consolidated companies; or possible obligations, whose occurrence is unlikely or
whose amount cannot be reliably estimated.
65
The Group's consolidated financial statements include all the material provisions with respect to matters for which it is considered that it is more likely
than not that the obligation will have to be settled and whose amount can be measured reliably. Contingent liabilities are not recognised in the
consolidated financial statements but rather are disclosed, except for those which arise in business combinations (see Notes 2-d and 35).
Provisions, which are quantified on the basis of the best information available on the consequences of the event giving rise to them and which are
reestimated at the end of each year are used to cater for the specific obligations for which they were originally recognised. Provisions are fully or
partially reversed when such obligations cease to exist or are reduced.
Litigation and/or claims in process
At 31 December 2007, certain litigation and claims were in process against the consolidated companies arising from the ordinary course of their
operations. The Group's legal advisers and its directors consider that the provisions constituted for this purpose are sufficient and that the outcome of
these proceedings and claims will not have an additional material effect on the financial statements for the years in which they are settled (see Note 18).
At 31 December 2007 and 2006, there were no unrecognised material contingent liabilities or provisions.
m. Grants
The Group accounts for the grants it receives as follows:
• Grants related to assets: These grants, which are measured at the amount granted, are treated as deferred income and taken to income in proportion
to the period depreciation on the assets concerned.
• Grants related to income are recognised as income when they are granted.
In 2007 and 2006, the Group allocated to income EUR 2,939 thousand and EUR 2,985 thousand, respectively, with a credit to "Other Income" in the
accompanying 2007 and 2006 consolidated income statements (see Note 22).
n. Revenue recognition
Revenue from the sale of goods
The principal goods sold by the Group are newspapers, magazines, promotional products and television programmes, the revenue from which is
measured at the fair value of the consideration received or receivable for the goods provided in the normal course of business, net of discounts, VAT
and other taxes.
Sales of goods are recognised when substantially all the risks and rewards have been transferred.
Revenue from the sale of services
The principal services provided by VOCENTO include the distribution of press and other products, the sale of advertising space, newspaper printing,
Internet connection services or technical counselling on audiovisual productions. Revenue from the rendering of services is measured at the fair value
of the consideration received or receivable for the services provided, net of discounts, VAT and other taxes.
Revenue from the assignment of film screening rights
This revenue is recognised on a straight-line basis over the term of the assignment. Consequently, advances received on this revenue are recognised
under “Trade Payables” in the consolidated balance sheet (see Note 19).
66
Revenue from television productions
The Group recognises this revenue by reference to the stage of completion and the estimated end margin based on the selling price agreed on.
Revenue from box-office takings from film productions
Revenue from box-office takings from the screening of films at cinemas is recognised when the film begins to be commercially exploited once the
settlement document has been received from the distributor.
Interest income and dividend income
Interest income is accrued on a time proportion basis, by reference to the principal outstanding and the effective interest rate applicable, which is the
rate that exactly discounts estimated future cash over the expected life of the financial asset to that the asset's carrying amount.
Dividend income from investments is recognised when the shareholder's rights to receive payment have been established.
ñ. Expense recognition
An expense is recognised in the income statement when there is a decrease in the future economic benefits related to a reduction of an asset, or an
increase in a liability, which can be measured reliably. This means that an expense is recognised at the same time as the increase in a liability or the
reduction of an asset is recorded.
An expense is immediately recognised when a disbursement does not give rise to future economic benefits or when the requirements for recognition
as an asset are not met.
Also, an expense is recognised when a liability is incurred and no asset is recognised, as in the case of a liability relating to a guarantee.
o. Volume rebates
The Group grants volume rebates to its customers, basically advertising agencies, based on the sales made, deferring the related expenses and
allocating them to income on an accrual basis at the end of each year.
The account payable arising from the aforementioned volume rebates are recognised under "Current Liabilities - Trade and Other Payables" on the
liability side of the accompanying consolidated balance sheet. The amount of the volume rebate to be offset against accounts receivable from the
related advertising agencies is therefore deducted from the balance of "Current Assets - Trade and Other Receivables" in the accompanying
consolidated balance sheet (see Note 15).
p. Income tax
The income tax expense is recognised using the balance sheet liability method. This method consists of determining the deferred tax assets and
liabilities on the basis of the differences between the carrying amounts of assets and liabilities and their tax base, using the tax rates that can objectively
be expected to apply in the period when the asset is realised or the liability is settled. Deferred tax assets and liabilities arising from charges or credits
made directly to equity accounts are also recognised with a charge or credit to equity.
The Group only recognises deferred tax assets if it is considered probable that sufficient future taxable profits will be generated against which they can
be utilised.
Double taxation and other tax credits and income tax relief deriving from economic events occurring in the year are deducted from the accrued income
tax expense, unless there are doubts as to whether they will be used.
67
q. Share-based payment
At the Annual General Meeting held on 5 September 2006, the shareholders resolved to approve an incentive plan tied to the value of VOCENTO's
shares, targeted at VOCENTO's executive directors, senior executives and executives, which total 66. The plan consists of the establishment of a single
variable remuneration payment in cash, tied to the performance of the share price over a period of three years from the date on which the Company's
shares were admitted to listing and conditional upon the achievement of a given increase in the Group's EBITDA, with a cash amount corresponding to
each management level.
The amount of the variable remuneration will be equal to the result of multiplying the number of reference shares corresponding to the executive by
the positive difference between the share flotation price and the share price three years later, adjusted by a factor which depends on the degree to
which the EBITDA increase target is met.
Although when the plan was established the maximum number of reference shares was 1,230,000, due to the reduction in the number of executives
included in the plan, at 31 December 2007 the number of reference shares amounted to 1,040,000.
The Group accrues these future payments on the basis of the valuation of the plan at 31 December each year, as a result of which in 2007 and 2006 EUR
316 thousand and EUR 49 thousand, respectively, were charged to “Staff Costs” in the accompanying consolidated income statement (see Note 29).
To value this plan, the Black-Scholes valuation method, which is widely used in financial circles, was adopted and the main assumptions used were as
follows:
Principal Assumptions
Plan exercise price
Price at quarterly closing (*)
Risk-free interest rate
Volatility
Estimated dividend rate
Staff rotation
Probability of meeting the EBITDA target
31 December 2007
EUR 15.00
EUR 13.60
4.05%
24.00%
4.74%
3.00%
100.00%
31 December 2006
EUR 15.00
EUR 14.70
3.87%
18.00%
3.00%
3.00%
100.00%
(*) This price refers to the lower of the closing share price and the average share price of the quarter.
The volatility is measured using historical data which, in the case of VOCENTO’s share, is obtained from the share price during the last 200 trading days.
At 31 December 2007, in order to cover the liability incurred in this connection, the Group recognised a provision of EUR 365 thousand (see Note 18).
r. Termination benefits
Under current labour legislation, the consolidated companies are required to pay termination benefits to employees terminated under certain
conditions.
In 2007 the Group recognised termination benefits (including the expenses arising from the cost optimisation plans at certain Group companies)
amounting to EUR 21,859 thousand with a charge to “Staff Costs - Termination Benefits” (see Notes 29 and 43) in the accompanying consolidated
income statement for 2007. The aforementioned amount includes provisions of EUR 11,250 thousand relating to the voluntary redundancies of certain
employees in 2007 and of others whose termination is expected in 2008.
68
s. Earnings per share
Basic earnings per share are calculated by dividing the net profit for the year by the weighted average number of ordinary shares outstanding during
the year, excluding the average number of shares of the Parent held.
Diluted earnings per share are calculated by dividing net profit or loss by the weighted average number of ordinary shares outstanding during the year,
adjusted by the weighted average number of ordinary shares that would have been outstanding assuming the conversion of all the potential ordinary
shares into ordinary shares of the Company. For these purposes, the conversion is deemed to take place at the beginning of the year or on the date of
issue of the potential ordinary shares if such shares had been issued during the reporting period.
In the case of the Group's consolidated financial statements for the years ended 31 December 2007 and 2006, basic earnings per share are equal to
diluted earnings per share since there were no potential shares outstanding during those years (see Note 36).
t. Dividends
The interim dividend approved by the Board of Directors in 2007 is presented as a deduction from the Group's equity. However, the final dividend
proposed by the Board of Directors of VOCENTO, S.A. for approval by the shareholders at the Annual General Meeting will not be deducted until it has
been approved by the latter.
u. Foreign currency transactions and balances
The Group's functional currency is the euro. Therefore, transactions in currencies other than the euro are deemed to be “foreign currency transactions”
and are recognised by applying the exchange rates prevailing at the date of the transaction.
At each consolidated balance sheet date, monetary assets and liabilities denominated in foreign currencies are translated to euros at the rates prevailing
on the balance sheet date. Any resulting gains or losses are recognised directly in the consolidated income statement.
On consolidation, the assets and liabilities of the Group's foreign operations are translated to euros at the exchange rates prevailing on the balance
sheet date. Income and expense items are translated at the average exchange rates for the year, unless exchange rates fluctuate significantly. Any
translation differences arising are classified as equity. Such translation differences are recognised as income or as expenses in the year in which the
investment is disposed of.
The foreign currency balances held at 31 December 2007 and 2006 and the foreign currency transactions performed in 2007 and 2006 are not
significant.
v. Consolidated cash flow statements
The following terms are used in the consolidated cash flow statements with the meanings specified:
• Cash flows: changes in “Current Assets - Cash and Cash Equivalents”.
• Operating activities: the principal revenue-producing activities of the Company and other activities that are not investing or financing activities,
including income and other taxes.
• Investing activities: the acquisition and disposal of long-term assets and other investments not included in cash and cash equivalents.
• Financing activities: activities that result in changes in the size and composition of the equity and borrowings of the Company that are not
operating activities.
69
w. Disposal groups and assets classified as held for sale
Assets and disposal groups are classified as held for sale if their carrying amount will be recovered through a sale transaction rather than through
continuing use, for which they must be available for immediate sale in their present condition and their sale must be highly probable.
For the sale to be highly probable, the following conditions must be met:
· VOCENTO must be committed to a plan to sell the asset or disposal group.
· An active programme to locate a buyer and complete the plan must have been initiated.
· The asset or disposal group must be actively marketed for sale at a price that is reasonable in relation to its current fair value.
· The sale should be expected to qualify for recognition as a completed sale within one year from the date of classification as held for sale.
· It is unlikely that significant changes will be made to the plan.
Assets and disposal groups classified as held for sale are measured in the consolidated balance sheet at the lower of carrying amount and fair value less
costs to sell (see Note 7). Also, non-current assets are not depreciated while they are classified as held for sale.
x. Profit/Loss from discontinued operations
A discontinued operation is a line of business that has been sold or disposed of by any other means, or that has been classified as held for sale (see Note
4-w) whose assets, liabilities and net profit or loss can be distinguished physically, operationally and for financial reporting purposes.
In accordance with IFRS 5, the 2006 cash flow statement for discontinued operations was presented for comparison purposes. The revenue and
expenses of discontinued operations are also presented separately in the consolidated income statement under "Profit for the Year from Discontinued
Operations” (see Note 7).
5. USE OF ESTIMATES
In the Group's consolidated financial statements for 2007 estimates were occasionally made by the management of the Group and of the consolidated
companies, later ratified by the directors, in order to quantify certain of the assets, liabilities, income, expenses and obligations reported herein. These
estimates relate basically to the following:
• The impairment losses on certain assets: the main risk of impairment losses on the Group's assets relate to goodwill acquired in business
combinations (see Notes 4-a and 8).
• The assumptions used in the actuarial calculation of post-employment benefit liabilities and obligations (see Notes 4-j and 18).
At the end of each year, the Group estimates the actual actuarial provision required to meet obligations from restructuring plans, pensions and other
similar obligations to employees. In preparing these estimates, the Group receives advice from independent actuaries.
70
• The useful life of the property, plant and equipment and other intangible assets (see Notes 4-b, 4-c, 9 and 10)
Years of estimated useful life
Computer software
Buildings and other structures
Plant and machinery
3–5
3 – 10
20 – 33
7 – 10
5–7
Certain items are depreciated /amortised on the basis of the expected pattern of consumption of the asset’s future economic benefits, and,
consequently, at the end of each year, the Group makes a new estimate, modifying the future depreciation/amortisation charge if necessary.
• Provisions and contingent liabilities (see Notes 4-j,4-e and 18).
• The Group uses the percentage of completion method to recognise revenue from television productions (see Note 4-n). This requires a reliable
estimate of the revenue from each contract, of the total costs to be incurred in completing the contract and of the stage of completion at the balance
sheet date from a technical and economic standpoint.
• At year-end the Group analyses its accounts receivable and, on the basis of its best estimates, quantifies the amount thereof that could be
uncollectible.
• As indicated in Note 21, the Group holds certain derivative instruments that are not traded on an active market whose fair value was calculated using
valuation techniques widely used in financial circles.
Although these estimates were made on the basis of the best information available at 31 December 2007 on the events analysed, events that take
place in the future might make it necessary to change these estimates (upwards or downwards) in coming years. Changes in accounting estimates
would be applied prospectively in accordance with the requirements of IAS 8, recognising the effects of the change in estimates in the related
consolidated income statements.
6. RISK MANAGEMENT POLICY
VOCENTO is exposed to certain financial risks that it manages by grouping together risk identification, measurement, concentration limitation and
oversight systems. The Corporate Division and the business units coordinate the management and limitation of financial risks through the policies
approved at the highest executive level, in accordance with the established rules, policies and procedures. The identification, assessment and hedging
of financial risks are the responsibility of each business unit.
The potential risks relating to the financial instruments used by the Group and the information thereon are set forth below:
• Foreign currency risk
Purchases of certain film production distribution rights made by the Group in US dollars may have an adverse impact on finance costs and profit
for the year. The Group mitigates this risk through the use of derivatives (see Note 21).
• Interest rate risk
Interest rate fluctuations change the fair value of assets and liabilities that bear interest at a fixed rate and the future cash flows from assets and
liabilities tied to a floating interest rate.
71
The purpose of interest rate risk management is to achieve a balance in the structure of the borrowings that minimises the aforementioned risks
and the cost of the borrowings.
The structure of the bank loans and credit facilities at 31 December 2007 and 2006, drawing a distinction between fixed and floating interest rate
borrowings, is as follows:
Thousands of Euros
2007
2006
Fixed interest rate
Floating interest rate
21
138,214
282
52,421
Total (Note 20)
138,235
52,703
In addition, the detail of bank deposits is as follows:
Thousands of Euros
2007 (*)
2006 (*)
Fixed interest rate
Floating interest rate
7,336
1,225
73,434
2,622
Total (Note 16)
8,561
76,056
(*) Excluding interest.
Lastly, current and non-current trade and other payables include the following amounts with financial costs:
Thousands of Euros
2007
2006
Other non-current payables (Note 23)
Trade and other payables (Note 19)
29,509
8,512
36,364
9,803
Total
38,021
46,167
The Group mitigates this risk through the use of derivatives (see Notes 20 and 21).
• Credit risk
In view of its business activities, the Group has balances with a significant number of customers (see Note 15). In addition to the analysis
described in Note 4-g, certain Group companies also arrange credit insurance to reduce the risk of doubtful debts. Consequently, the directors
consider that there is no risk of unrecognised material doubtful debts in relation to accounts receivable at 31 December 2007 and 2006.
• Liquidity risk
The Group's liquidity policy combines its cash surplus position with the arrangement of credit facilities based on its projected cash needs and of
the situation of the debt and capital markets.
72
7. PROFIT/LOSS FROM DISCONTINUED OPERATIONS AND ASSETS CLASSIFIED AS HELD FOR SALE
The balance of “Profit for the Year from Discontinued Operations” in the consolidated income statements at 31 December 2007 and 2006 relates in
full to the sale of the ownership interest in the Argentine company Compañía Inversora en Medios de Comunicación, S.A. (CIMECO) for EUR 26,740
thousand, performed in August 2007 (see Note 2-e). The detail of this balance is as follows.
Thousands of Euros
2007
2006
Profit for the year of CIMECO
Profit before tax on disposal of CIMECO
Income tax expense relating to the disposal
Net profit on disposal of CIMECO
1,028
22,843
(2,441)
20,402
1,379
-
Total
21,430
1,379
For the purposes of calculating the income tax expense, the gains on the sale of CIMECO were partially offset with prior years’ tax loss carryforwards
which, due to the directors’ doubts concerning the recoverability thereof, had not been capitalised.
The only flow attributable to discontinued operations in 2007 and 2006 was the EUR 26,740 arising from the sale of the ownership interest.
No operations were discontinued in 2006 although “Profit from Discontinued Operations” in the consolidated income statement for 2006 includes the
operations of CIMECO for comparison purposes (see Note 4-x).
73
8. GOODWILL
The changes in “Goodwill” in the consolidated balance sheet in 2007 and 2006 were as follows:
Thousands of Euros
Balance at
1/1/06
Printed media
Legal Informatic, S.L.
Corporación de Medios de Extremadura, S.A.
Factoría de Información, S.A.
Audiovisual
Radio Publi, S.L.
Moper Visión, S.L.U.
Comunicaset, S.A.
Avista Televisió de Barcelona, S.L.
Radio Utrera La Voz de la Campiña, S.L.U.
BocaBoca Producciones, S.L.
Tripictures, S.A.
Teledonosti, S.L.
KTB-Kate Berria, S.L.U.
Canal Cultural Badajoz, S.L.
Radio Televisión Canal 8 DM, S.L.
Radio Difusión Torre, S.A.
Hill Valley, S.L.
Durango Telebista, S.L.
Internet
Habitatsoft, S.L.
Sarenet, S.A.
Infoempleo, S.L.
Bitmailer, S.L.
Other businessesSector MD, S.L.
Distribución de Prensa por Rutas, S.A.
Rotodomenech, S.L.
Total gross
74
Additions
(Note 35)
Other
Write-Downs (Note 35)
Transfers
Balance at
31/12/06
Additions
(Note 35)
Other Balance at
Write-Downs Disposals (Note 35) 31/12/07
4,225
2,349
2,043
1,005
1,964
3,347
-
1,407
31,519
-
-
-
18,278
-
4,225
1,407
2,349
2,043
1,005
1,964
3,347
49,797
-
119,146
(297)
-
-
4,225
1,110
2,349
2,043
1,005
1,964
3,347
49,797
- 119,146
4,386
18,503
641
1,174
693
3,221
625
9,892
204
26
113
183
5
-
323
375
19,945
303
43
-
(2,220)
(489)
(1,016)
(2,900)
(124)
-
(1,815)
-
-
2,166
18,503
641
685
696
501
8,077
19,945
204
26
113
183
303
43
5
-
127
(2,166)
(5,595)
(641)
(685)
(501)
(3,089)
-
-
-
(303)
-
-
12,908
696
8,077
16,856
204
26
113
183
43
5
127
828
-
1,597
6,386
2,214
3,091
-
-
-
-
1,597
828
6,386
2,214
3,091
-
1,627
-
-
(231)
-
1,597
828
6,386
1,983
3,091
1,627
131
159
55,717
25
83
67,311
(6,749)
(1,815)
131
159
25
83
18,278 132,742
120,900
(12,974) (303)
131
159
25
83
(231) 240,134
Analysis of the recoverability of goodwill
As indicated in Note 4-a, at each balance sheet date the Group measures the impairment loss on goodwill. In accordance with the aforementioned
measurements, in 2007 and 2006 the Group wrote down EUR 12,974 thousand and EUR 6,749 thousand, respectively, for the impairment of goodwill
at companies at which the directors consider that, due to the situation of the market, it is uncertain that the future profits initially estimated will be
achieved. The recoverable amount of the cash-generating units associated with the aforementioned goodwill was measured with reference to the value
in use (see Note 4-a). Value in use was determined on the basis of projected cash flows (approved by management) that represent the best estimates
for a five-year period.
The cash flows of periods subsequent to those covered by the projections were extrapolated using constant growth rates that the directors consider do
not exceed the average long-term growth of the industry in which the aforementioned companies operate, ranging from 2% to 2.5%.
The pre-tax discount rates used in assessing value in use ranged between 11.71% and 15%.
9. OTHER INTANGIBLE ASSETS
The changes in “Other Intangible Assets” in the consolidated balance sheet in 2007 and 2006 were as follows:
Thousands of Euros
Change in
Change
Change in the method of
Increase
in the
Increase
the scope of consolidation Additions (Decrease) Disposals
scope of
Additions (Decrease)
Balance consolidation (Notes 2-a, and charge
due to
or
Balance consolidation and charge
due to
at 01/01/06 (Note 35)
2-b and 12) for the year transfer reductions at 31/12/06 (Note 35) fot the year transfer
Disposals
or
Balance at
reductions 31/12/07
COST:
9,817
380
2
1,589
-
(1,722)
10,066
3
3,163
1,070
(562)
13,740
Computer software
29,838
2,154
-
2,979
399
(1,323)
34,047
336
5,446
220
(2,639)
37,410
Scripts and projects
3,003
-
-
286
-
-
3,289
-
413
443
-
4,145
-
2,922
-
35
-
-
2,957
-
309
(1,633)
-
1,633
Development expenditure
Film productions
Film productions in progress
-
129,073
-
1,469
-
-
130,542
-
10,507
-
(3,416)
137,633
29,203
-
-
103
889
(129)
30,066
-
122
119
-
30,307
1,238
-
-
-
(889)
-
349
-
-
1
-
350
1,882
1,453
2
3,914
(399)
(868)
5,984
-
702
(145)
(70)
6,471
74,981
135,982
4
10,375
-
(4,042)
217,300
339
20,662
75
(6,687)
231,689
Advances on intangible assets
in progress
Total cost
ACCUMULATED AMORTISATION AND IMPAIRMENT LOSSES:
(8,245)
(258)
-
(1,001)
-
799
(8,705)
-
(2,362)
-
64
(11,003)
Computer software
(25,755)
(1,689)
-
(2,132)
-
909
(28,667)
-
(2,527)
225
1,604
(29,365)
Scripts and projects
(1,680)
-
-
(557)
-
-
(2,237)
-
(558)
-
5
(2,790)
Development expenditure
-
(2,421)
-
(142)
-
-
(2,563)
(43)
-
(180)
-
(2,786)
-
(23,032)
-
(5,481)
-
-
(28,513)
-
(14,202)
(4,088)
105
(46,698)
(23,248)
-
-
(6,510)
-
5
(29,753)
-
(3,641)
4,047
-
(29,347)
(1,035)
-
-
149
-
-
(886)
-
-
(4)
259
(631)
(59,963)
(27,400)
-
(15,674)
-
1,713 (101,324)
(43)
(23,290)
-
15,018
108,582
4
(5,299)
-
296
(2,628)
75
Film productions
Recognition/Reversal of impairment
losses on other intangible assets
and impairment losses
Total net cost
(2,329)
115,976
2,037 (122,620)
(4,650)
109,069
(*) Other intangible assets in use that had been fully amortised at 31 December 2007 and 2006 amounted to EUR 81,092 thousand and EUR 50,875 thousand, respectively.
75
10. PROPERTY, PLANT AND EQUIPMENT
The changes in “Property, Plant and Equipment” in the consolidated balance sheet in 2007 and 2006 were as follows:
Thousands of Euros
Change in
Change
Change in the method of
Increase
in the
Increase
the scope of consolidation Additions (Decrease) Disposals
scope of
Additions (Decrease)
Balance consolidation (Notes 2-a, and charge
due to
or
Balance consolidation and charge
due to
at 01/01/06 (Note 35)
2-b and 12) for the year transfer reductions at 31/12/06 (Note 35) fot the year transfer
COST:
Land, buildings and other
structures
Plant and machinery
Other items of property, plant
and equipment
Advances and property, plant
and equipment in the course
of construction
Disposals
or
Balance at
reductions 31/12/07
117,161
237,578
23,084
14,622
-
7,214
5,978
310
(560)
(368)
146,899
258,120
(554)
4,164
17,867
5,787
3,586
(63)
(1,935)
156,787
277,084
103,013
9,613
-
9,522
6
(3,027)
119,127
1,382
10,912
703
(6,885)
125,239
1,293
-
342
5,695
(316)
(330)
6,684
49
8,881
(10,151)
(226)
5,237
459,045
47,319
342
28,409
-
(4,285)
530,830
877
41,824
(75)
(9,109)
564,347
(34,456)
(157,776)
(2,224)
(12,790)
-
(3,397)
(15,069)
-
184
123
(39,893)
(185,512)
304
(3,606)
(14,425)
(118)
(488)
(69,465)
(7,369)
-
(7,315)
-
963
(83,186)
(347)
(8,574)
606
6,200
and impairment losses
(261,697)
Total net cost
197,348
(22,383)
24,936
342
(25,781)
2,628
-
1,270
(3,015)
(308,591)
222,239
(43)
834
(26,605)
15,219
(75)
8,542 (326,697)
(567) 237,650
Total cost
ACCUMULATED DEPRECIATION:
Buildings and other structures
Plant and machinery
Other items of property, plant
and equipment
845 (42,772)
1,497 (198,624)
(85,301)
At 31 December 2007, the Group held various assets under finance leases which are classified on the basis of their nature. The information on the
minimum lease payments at 31 December 2007 is as follows:
Thousands of Euros
2007
2008 onwards
1,551
14,776
Total lease payments payable
16,327
Finance charges
Present value of lease payments (Note 20)
3,418
12,909
16,327
At 31 December 2007 and 2006, fully depreciated property, plant and equipment in use amounted to EUR 154,255 thousand and EUR 138,271
thousand respectively.
The main additions in 2007 and 2006 relate to the Group’s investments in its new printing plants in Valladolid, Alicante, Málaga and Asturias.
At 31 December 2007, the various Group companies did not have any material investment commitments except for those of the printing centres,
amounting to approximately EUR 3,152 thousand.
The Group has taken out insurance policies to cover the possible risks to which its property, plant and equipment are subject and the claims that might
be filed against it during the performance of its business activities. These policies are considered to adequately cover the related risks.
76
11. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD
The changes in 2007 and 2006 in the carrying amounts of investments in Group companies accounted for using the equity method (see the Appendix
to these notes to the consolidated financial statements) were as follows:
Thousands of Euros
Additions
(Disposals)
including
changes in
the scope of
Balance at consolidation
01/01/06
(Note 35)
Inclusion
of profit
or loss for
the year
Dividends
received
Other
changes
Additions
(Disposals)
including
changes in
the scope of
31/12/06
(Note 2.a)
Inclusion
of profit
or loss for
the year
Dividends
received
Other Balance at
changes 31.12.07
Printed media
28,241
Prisma Publicaciones 2002, S.L. 1,232
Gala Ediciones, S.L. (Note 12)
713
Milenio ABC, S.A. de C.V.
-
(28,395)
(1,210)
83
154
(22)
(289)
-
(713)
(135)
(341)
-
(226)
-
286
(281)
Audiovisual
and subsidiaries
86,351
Grupo Videomedia, S.A.
11,018
Producciones Antares Media, S.L.
687
1,160
-
40,852
697
(29)
(37,931)
(133)
-
(763)
-
88,509
12,742
658
(630)
45,898
477
(28)
(41,087)
(299)
-
(42)
-
93,320
12,878
-
156
167
1,966
2,055
1,490
2,500
1,295
215
(41)
(1,295)
-
171
186
818
599
1,379
3
-
(103)
(109)
(662)
(366)
-
(160)
1
(2,500)
-
64
244
2,122
2,288
2,870
218
(41)
(2,870)
-
172
182
1,084
513
4
-
(109)
(682)
(114)
-
(57)
33
(3)
19
43
179
350
2,524
2,684
241
2
138,045
(29,657)
44,519
(39,304)
(4,270)
109,333
(3,500)
48,076
(42,291)
278
111,896
Other businesses
Cirpress, S.L.
Distrimedios, S.A.
Val Disme, S.L.
CIMECO (Note 7)
Localprint, S.L. (Note 12)
Rotok Industria Gráfica, S.A.
Victor Steinberg y Asoc, S.L.
Other investments
The main transactions performed by the Group in relation to its investees were as follows:
2007
• In July 2007 the Group sold the ownership interest of 30% in the share capital of Producciones Antares Media, S.L. for EUR 720 thousand, giving rise
to the recognition of a loss of EUR 630 thousand (see Note 33). Under this agreement, the sale of the ownership interest is subject to the award of
certain digital terrestrial television licences. In the event that the company disposed of were not awarded any licences, the sale would be annulled and
the ownership interest returned to the Group; however the directors consider that this situation will not arise.
77
2006
• In accordance with the agreement for the acquisition of the initial ownership interest in Grupo Videomedia, S.A. (formalised in 2005), in February
2008 the initial price paid for the ownership interest will be adjusted on the basis of the difference between the actual and estimated results for 2005
and 2006. Based on this calculation, the Group recognised EUR 1,160 thousand as an increase in the value of its ownership interest.
In addition, the aforementioned agreement contains a clause for the acquisition of a further 30.01% in 2008. If the seller rejects the acquisition, it
will have to repurchase the interest acquired by the Group in 2005. At 31 December 2007, the Parent’s directors had not taken any decision in this
respect.
Lastly, under the aforementioned agreement, the former shareholders grant the Group non-transferable call options and the Group grants the former
shareholders non-transferable put options on the remaining ownership interest to be exercised in successive years at the market price of the holding.
Since the exercise price of the options is the market price, the Group considers that the value of the options is zero and, therefore, did not recognise
any asset or liability in this connection.
• In February 2006 the Group sold its entire ownership interest (49%) in the share capital of Prisma Publicaciones 2002, S.L. for EUR 1,641 thousand
and, therefore, the Group recognised income of EUR 431 thousand under “Net Gain on Disposal of Non-Current Assets” in the accompanying
consolidated income statement for 2006 (see Note 33).
• In December 2006 the Group sold 25% of the shares of Rotok Industria Gráfica S.A. for EUR 2,313 thousand, as a result of which it recognised
income of EUR 517 thousand under “Net Gain on Disposal of Non-Current Assets” in the accompanying consolidated income statement for 2006
(see Note 33).
The detail of the main aggregates of the companies accounted for using the equity method is as follows:
Thousands of Euros
Financial debt
Total equity
ASSOCIATES:
Printed media
Milenio ABC, S.A. de C.V. (*)
Audiovisual
Plato Chroma, S.A.
Grupo Productores Independientes, S.L. (**)
Videomedia, S.A.
Imagen y Servicios, S.A.
Alia Ediciones, S.L.
Videomedia Portugal, LTDA.
Videomedia Italia, S.R.L.
Other businesses
Cirpress, S.L.
Distrimedios, S.A.
Val Disme, S.L.
Gross
Net
(7,671)
5,341
-
(230)
662,486
2
(1,089)
167
8,637
616
90
177
(57)
1,082,458
32
1,576
221
18,074
1,071
90
991
9,496
1,660
1,678
(74,843)
(58)
(48)
845
(637)
(54)
(13)
1,188
700
1,232
1,134
3,368
526
6,648
5,045
30,609
22,629
2,431
176
751
5,576
4,316
181
95
412
3,532
3,644
115
(*) This information is presented in accordance with local accounting principles and in Mexican pesos.
(**) Figures at 31 December 2006.
78
Total assets
12. INTERESTS IN JOINT VENTURES
In 2007 the jointly controlled entities managed by the Group together with other companies were proportionately consolidated, the method
considered by the Parent’s directors to most fairly reflect the joint control of the aforementioned companies (see Notes 2-a and 2-d).
In 2006 the Group held ownership interests in the joint ventures Gala Ediciones, S.L. and Localprint, S.L. In December 2006, the Group acquired the
remaining 50% of the share capital of Gala Ediciones, S.L. and, as a result, the company was fully consolidated.
The most significant financial information relating to the ownership interest in Localprint S.L. is summarised as follows:
Thousands of Euros
Revenue
Net profit from operations
Non-current assets
Current assets
Non-current liabilities
Current liabilities
31/12/07
31/12/06
7,527
827
32,897
4,592
18,796
8,816
8,628
2,194
1,820
4,002
13. FINANCIAL ASSETS
a. Non-current investment securities
The carrying amount of the most representative investments in long-term investment securities at 31 December 2007 and 2006 is as follows:
Thousands of Euros
Company
31/12/07
31/12/06
El Mundo Deportivo, S.A.
Televisión Castilla y León, S.A.
Val Telecomunicaciones, S.L.
Other investments
561
840
12,883
1,239
918
944
12,883
1,207
Total
15,523
15,952
% of ownership at 31/12/07
10%
4.9%
8.82%
% of ownership at 31/12/06
10%
4.9%
8.82%
In 2006 the ownership interest in Val Telecomunicaciones, S.L. was increased by EUR 9,772 thousand due to the inclusion in the scope of consolidation
of Federico Doménech, S.A. (see Note 35). In addition, since the directors did not have a reliable estimate of the fair value of the 2.14% ownership
interest held by the Group in this company at 2005 year-end, a market transaction was carried out in order to reliably to determine this fair value. This
gave rise to an increase in the value of the ownership interest of EUR 1,084 thousand, which was recognised with a credit of EUR 605 thousand, EUR
99 thousand and EUR 380 thousand to “Reserves - Unrealised Asset and Liability Revaluation Reserve”, “Equity – Minority Interests” and “Deferred Tax
Liabilities”, respectively, in the accompanying consolidated balance sheet for 2006. The valuation of the ownership interest was not modified in 2007
since the Parent’s directors considered that there were no significant changes in the fair value thereof with respect to the previous year.
Also, in December 2006 the Group sold its entire ownership interest in Radio Popular, S.A. Cadena de Onda Populares Españolas for EUR 2,772
thousand, of which EUR 1,721 thousand was credited to “Finance Income” (see Note 31) in the accompanying consolidated income statement for
2006.
79
b. Other non-current financial assets
The detail of the balance of this heading in the consolidated balance sheets, based on the nature of the related transactions, is as follows:
Thousands of Euros
2007
2006
Long-term deposits and guarantees given
1,312
1,265
Total
1,312
1,265
14. INVENTORIES
The breakdown of “Inventories” in the accompanying consolidated balance sheets at 31 December 2007 and 2006 is as follows:
Thousands of Euros
2007
2006
Raw materials
Other raw materials
Spare parts
Audiovisual programme rights
Merchandise and finished goods
Other inventories
Advances to suppliers
25,784
887
2,874
636
1,959
968
2,520
17,122
746
2,875
661
3,458
1,307
717
Total
35,628
26,886
At 31 December 2007 and 2006, there are no inventories provided as security for the payment of debts or in relation to any other commitments
acquired with third parties.
15. TRADE AND OTHER RECEIVABLES
The breakdown of “Current Assets - Trade and Other Receivables" on the asset side of the accompanying consolidated balance sheets at 31 December
2007 and 2006 is as follows:
Thousands of Euros
2007
Trade receivables for sales and services
Notes receivable
Less- sales volume rebates (Note 4-o)
Receivable from related parties (Note 37)
Other receivables (Note 4-b)
Allowance for uncollectible receivables
2006
228,602
6,509
(14,964)
17,385
23,574
(11,110)
199,817
5,060
(11,101)
7,950
27,503
(11,953)
249,996
217,276
All the aforementioned balances mature in less than 12 months and are interest-free. Therefore, their realisable value does not differ significantly from
their carrying amount.
80
16. CASH AND CASH EQUIVALENTS
The breakdown of “Current Assets - Cash and Cash Equivalents” in the accompanying consolidated balance sheets at 31 December 2007 and 2006 is
as follows:
Thousands of Euros
2007
2006
Other short-term loans (Note 21)
Short-term deposits (Note 6)
Cash
1,937
8,561
32,547
2,898
76,056
35,977
Total
43,045
114,931
Basically, this heading includes the Group's cash and short-term bank deposits with an initial maturity of three months or less. The bank accounts earn
interest at market rates. There are no restrictions on the use of the balances.
The carrying amount of these assets approximates their fair value.
17. EQUITY
Share capital
At 31 December 2007, the Parent's share capital amounted to EUR 24,994 thousand and consisted of 124,970,306 fully subscribed and paid shares of
EUR 0.2 par value each. The Company's shares are traded on the Spanish Stock Market Interconnection System and on the Bilbao, Madrid, Barcelona
and Valencia Stock Exchanges.
Since VOCENTO's shares are represented by book entries, the exact ownership interest of the shareholders in the share capital is not known. However,
on the basis of information in the public domain available to the Parent, at 31 December 2007, the only shareholder with an ownership interest of 10%
or more was Mezouna, S.A., which owns 10.382% of the share capital.
Reserves
The detail of reserves at 31 December 2007 and 2006 is as follows:
Thousands of Euros
Reserves of the Parent
Share premium
Legal reserve
Reserve for treasury shares
Voluntary reserves
Unrealised asset and liability revaluation reserves (Notes 13 and 21)
Reserves at consolidated companies
Reserves at companies accounted for using the equity method (Note 11)
Reserves at fully and proportionately consolidated companies
2007
2006
145,173
9,516
4,999
9,612
121,046
123,461
9,516
4,999
9,211
99,735
791
605
358,201
(4,628)
362,829
369,099
(74,258)
443,357
81
Share premium
The Consolidated Spanish Companies Law expressly permits the use of the share premium account balance to increase capital and does not establish
any specific restrictions as to its use.
Legal reserve
Under the Consolidated Spanish Companies Law, 10% of net profit for each year must be transferred to the legal reserve until the balance of this
reserve reaches at least 20% of the share capital. The legal reserve can be used to increase capital provided that the remaining reserve balance does not
fall below 10% of the increased share capital amount. Otherwise, until the legal reserve exceeds 20% of share capital, it can only be used to offset
losses, provided that sufficient other reserves are not available for this purpose.
At 31 December 2007 and 2006, this reserve had reached the legally stipulated level. At 31 December 2007 and 2006, the restricted reserves
amounted to EUR 81,251 thousand and EUR 82,589 thousand, respectively.
Treasury shares
The detail of the treasury shares and of the changes therein in 2007 and 2006 is as follows:
Thousands of Euros
Acquisition of treasury shares
Reduction due to public offering
Adjustment of public offering price (Note 4-k)
Number of Shares
9
166,742
(135,720)
1,158
7,339
11,910,127
(9,692,791)
-
32,189
32,189
2,224,675
2,224,675
Pursuant to the Consolidated Spanish Companies Law, a restricted reserve was recognised for an amount equal to the cost of the treasury shares held.
The balance of this reserve will become unrestricted when the circumstances making such a recognition necessary cease to exist.
Dividends
On 25 July 2007, the Board of Directors of the Parent resolved to distribute an interim dividend of EUR 37,786 thousand. The total amount of the
interim dividends distributed is recognised under “Equity - Interim Dividend” on the liability side of the accompanying balance sheet at 31 December
2007.
On the aforementioned dates, the Company was meeting the requirements of Article 194 of the Consolidated Spanish Companies Law for the
distribution of dividends since it had sufficient unrestricted reserves with respect to the unamortised expenses referred to in this article.
The provisional accounting statement prepared in accordance with legal requirements evidencing the existence of sufficient liquidity for the distribution
of the dividends was as follows:
Thousands of Euros
82
Profit before tax at 30 June 2007
Income tax
46,471
3,911
Distributable profit
50,382
Current account with Group companies
98,215
105,515
Liquidity available
203,730
At 31 December 2007 this dividend had been paid in full. At 31 December 2007, EUR 956 thousand relating to outstanding dividends, net of tax
withholdings, were recognised under “Trade and Other Payables” in the accompanying consolidated balance sheet (see Note 19).
Equity of minority interests
In addition to those described in Note 35, the main transactions in 2007 and 2006 that affected the equity of minority interests were as follows:
2007
• In May 2007 the Group acquired a further ownership interest of 23.33% of the share capital of Autocasión Hoy, S.A. (formerly Maxi Press
Comunicación, S.A.) for EUR 1,917 thousand. Until such date the Group had held an ownership interest of 26.68% of the share capital of this
company although, by virtue of the shareholders' agreement with one of the shareholders, control was exercised by VOCENTO and, therefore, the
Group recognised EUR 1,721 thousand as a deduction from reserves.
• In May, after obtaining the required administrative authorisation, the Group acquired 25% of the share capital of Avista Televisió de Barcelona, S.L.
for EUR 1,555 thousand. Since the Group controlled the aforementioned company, the EUR 1,866 thousand paid in excess of the underlying carrying
amount of the shares was recognised with a charge to reserves.
• In June 2007 the Group acquired a further ownership interest of 30% of the share capital of Bocaboca Producciones, S.L. for EUR 1,500 thousand.
The Group held an ownership interest of 70% in the aforementioned company and recognised EUR 1,511 thousand as a deduction from reserves.
• In July 2007, after obtaining the required administrative authorisation, the Group acquired an ownership interest of 25.22% of the share capital of
Pantalla Digital, S.L. for EUR 3,217 thousand. The Group's ownership interest in the company’s share capital totalled 74.78%. The amount paid in
excess of the underlying carrying amount of the investment acquired, which totalled EUR 2,900 thousand, was recognised with a charge to reserves.
• In December 2007, the Group sold the ownership interest of 51% of the share capital of Radio Difusión Torre, S.A. for EUR 1,453 thousand. The gains
on the transaction, amounting to EUR 973 thousand, were recognised under “Net Gains on Disposal of Non-Current Assets” in the accompanying
consolidated income statement for 2007 (see Note 33).
2006
• The inclusion of Federico Doménech, S.A. (see Note 35) in the scope of consolidation gave rise to the inclusion of an additional ownership interest of
16% in the subsidiary Taller de Editores, S.A. This gave rise to a reduction of EUR 2,352 thousand in minority interests relating to the underlying
carrying amount of the 16% ownership interest, and to a reduction of EUR 11,578 thousand in reserves.
• In June 2006 the Group acquired a further ownership interest of 30% of the share capital of Grupo Europroducciones, S.A. for EUR 10,956 thousand.
The amount paid in excess of the underlying carrying amount of the investment acquired, which totalled EUR 5,253 thousand, was recognised with
a charge to reserves.
83
Distribution of profit
The distribution of the Group's net profit for 2007 that the Parent’s Board of Directors will propose for approval by the shareholders at the Annual
General Meeting is as follows:
Thousands of Euros
Distributable profit:
Profit for the year
82,168
Distribution of profit:
To voluntary reserves
Final dividend
Interim dividend
(20,543)
(23,839)
(37,786)
18. PROVISIONS
The detail of this heading in the accompanying consolidated balance sheets and of the changes in 2007 and 2006 is as follows:
Thousands of Euros
Changes in
the scope of
01/01/06
(Note 35)
Provisions for pensions (Note 4-j) 4,708
Provisions for share-based
payments (Note 4-q)
Write-down of CIMECO
969
Corporación de Medios
Radiofónicos Digitales, S.A.
guarantees (Notes 3 and 38)
4,858
Provisions for litigation and tax
(Note 24)
15,988
Provisions for litigation relating
to the publishing and
audiovisual businesses
1,910
Other provisions
1,864
30,297
Charge for
the year
Reversals
Amounts
used
Changes in
the scope of
31/12/06
(Note 35)
Charge for
the year
Reversals
Amounts Balance at
used
31/12/07
613
4,271
(416)
(114)
9,062
-
345
(1,301)
(3,758)
4,348
-
49
-
(969)
-
49
-
-
316
-
-
-
365
-
-
-
-
-
4,858
-
-
-
-
4,858
-
57
(2,005)
-
14,040
47
60
(7,508)
(638)
6,001
145
758
3,035
7,412
(1,045)
(4,435)
(563)
(70)
(747)
1,347
3,929
33,285
47
362
582
1,665
(763)
(9,572)
-
1,709
3,748
21,029
(4,396)
At each balance sheet date the Group estimates the liabilities arising from litigation and similar events which require the recognition of provisions of a
tax and legal nature. Although the Group considers that the cash outflows will take place in the coming years, it cannot predict when the litigation will
end and, therefore, it does not make an estimate of the specific dates of the cash outflows, thereby considering the effect of a potential discount to
present value to be material.
The directors consider that the provision recognised in this connection is sufficient to cover the risks existing at 31 December 2007.
In 2007 the Group reversed EUR 7,375 thousand of these provisions with a credit to “Income Tax” in the accompanying consolidated income statement
(see Note 24) since the directors considered that (based on the opinion of their tax advisers) the circumstances that made the recognition advisable had
ceased to exist in 2007.
84
The detail of the main contingent liabilities at 31 December 2007 is as follows:
1. Casterman Editeurs, S.A. against Diario ABC, S.L. and another party. Barcelona Court of First Instance no. 5. Claim for alleged infringement of
Casterman's intellectual property rights relating to the distribution of the books in the “Las Aventuras de Tintín” collection together with Diario ABC
in summer 2003. Following the decision of the Court of First Instance which ordered ABC and Juventud to jointly and severally pay EUR 699
thousand, an appeal was filed which was partially upheld, reducing the damages to 50% of the net profit which ABC would have obtained in the
sales campaign for the aforementioned books (approximately EUR 60 thousand). Although this judgment is subject to a cassation appeal, ABC’s
possible liability is guaranteed by the supplier of the books, RBA and, therefore, the Group has not recognised any provision in this connection.
2. Audiovisual Sport S.L. against Prensa Malagueña, S.A. Supreme Court: claim for the infringement of intellectual property rights. This claim was
partially upheld (EUR 14 thousand) although a decision has yet to be handed down on the cassation appeal whereby the complainant is claiming EUR
477 thousand. The Group considers that the appeal filed for the amount claimed is unlikely to be upheld and, consequently, no specific provision has
been recognised in this connection.
3. José Javier Villar against Grupo Videomedia, S.A. Alcobendas Examining Court no. 4 (Madrid): complaint for the infringement of intellectual property
rights against Vodafone and others, accessorily including Videomedia, S.A. Group. In 2007 the complaint was dismissed.
4. Sociedad Gestora de Televisión NET TV, S.A. Supreme Court: appearance as a party in the appeal for judicial review filed at the Supreme Court by
Infraestructuras y Gestión 2002, S.L. against the award of the second additional digital channels. This entity requested an injunctive stay on the
related licences, which was refused under a court order of 18 July 2006. There is no evidence of any appeals having been filed against this decision.
The complainant argues that a call for tenders should have been held for the new radio spectrum licences, which were awarded to companies that
already held state television concessions and, according to the complainant, this could have given rise to discrimination. The complainant also alleges
that various formal defects existed (late filing of documentation, etc.). Although a decision has yet to be handed down, the Group does not expect
this appeal to be successful.
5. Federico Doménech, S.A. Judicial Review Chamber of the Valencia High Court: the call for tenders for the award of local television channels was
challenged by Federación Valenciana de Televisión. The appellant argues that the concession of radioelectric space associated with the concession of
the regional or local TDT service is under the jurisdiction of the state rather than that of the autonomous regions and, therefore, the calls for tender
went beyond the ambit of the administrative body against which the complaint was filed. Also he argues that the constitutional right relating to a
company’s freedom and fair competition has been infringed. Lastly, the complainant alleges that various formal defects existed. Although a decision
has yet to be handed down, the Group does not expect this appeal to be successful.
6. Mundo Mágico Tours, S.A. against Prensa Malagueña, S.A. Málaga Criminal Court no. 9: Criminal complaint for false allegations of criminal conduct,
requesting an indemnity of EUR 10,000 thousand. The trial was held in 2007 and a decision has yet to be handed down. The Group has not
recognised any provision in this connection.
85
19. TRADE AND OTHER PAYABLES
The breakdown of “Trade and Other Payables” in the accompanying consolidated balance sheets at 31 December 2007 and 2006 is as follows:
Thousands of Euros
2007
Trade payables
Payable to related parties (Note 37)
Trade payables
Unreceived invoices
Trade notes payable to suppliers
Other payables and volume rebate (Note 4-o)
2006
2,968
156,858
23,811
7,087
(1,142)
1,621
141,347
20,763
6,406
(1,228)
189,582
168,909
1,486
26,749
2,539
3,636
4,767
12,264
956
4,719
1,979
19,835
6,392
3,636
4,767
11,839
15,947
7,080
Other current payables
Share in profits of the Board of Directors of
VOCENTO, S.A. (Note 38)
Remuneration payable
Payable to suppliers of property, plant and equipment (Note 10)
Pension payments payable (Notes 4-j, 5 and 23)
Group insurance (Notes 4-j, 5 and 23)
Accrued expenses and deferred income
Interim dividend payable (Note 17)
Other
57,116
71,475
246,698
240,384
20. BANK BORROWINGS AND OTHER FINANCIAL LIABILITIES
The detail of the bank borrowings at 31 December 2007 and 2006 and the repayment schedules are as follows:
Thousands of Euros
Maturities
Non-current
Current
Balance at
31/12/06
Balance at
31/12/07
2008
2009
2010
2011 and
subsequent years
Total
non-current
Loans and credit facilities payable (Note 6)
Obligations under finance leases (Note 10)
Amounts payable under derivative financial
instruments (Note 21)
Accrued interest payable
52,703
247
138,235
12,909
22,773
958
17,969
1,099
9
1,079
97,484
9,773
115,462
11,951
756
550
853
533
853
533
-
-
-
-
Total
54,256
152,530
25,117
19,068
1,088
107,257
127,413
At 31 December 2007, the Group companies had drawn down approximately EUR 121,374 thousand against credit accounts granted by banks. The
amount available at year-end was EUR 259,666 thousand.
86
The average annual interest rate for 2007 and 2006 on the loans and credit facilities and on the obligations under finance leases was EURIBOR plus the
following spreads:
Loans and credit facilities
Obligations under finance leases
2007
2006
0.75% - 0.4%
1.5%-0.4%
0.6% - 0.35%
2% - 0.6%
The directors consider that since these loans were arranged on an arm's length basis, the market value of the loans does not differ significantly from
their carrying amount. The sensitivity of the aforementioned market values to interest rate fluctuations is as follows:
Thousands of Euros
Change in interest rates
2007
Change in the value of the borrowings
2006
+ 0.25%
- 0.25%
+ 0.25%
- 0.25%
(1,002)
1,013
(272)
274
The Group hedges the risk associated with increases in interest rates using derivative financial instruments (Notes 6 and 21).
21. DERIVATIVE FINANCIAL INSTRUMENTS
The Group uses derivative financial instruments to hedge the risks, arising mainly from exchange rate and interest rate fluctuations, to which its future
activities, transactions and cash flows are exposed. The detail of the balances that reflect the measurement of derivatives in the consolidated balance
sheets at 31 December 2007 and 2006 is as follows:
Thousands of Euros
2007
Assets
INTEREST RATE HEDGES
Cash flow hedges:
Interest rate swaps
Step-up collars
FOREIGN EXCHANGE HEDGES
Fair value hedges:
Foreign exchange hedges (USD)
2006
Liabilities
Assets
Liabilities
227
2
(4)
-
-
-
229
(849)
(853)
-
(756)
(756)
The interest rate hedging instruments were arranged in 2007. The effect of the changes in these hedging instruments during 2007 was recognised with
a credit to "Reserves - Unrealised Asset and Liability Revaluation Reserves” and “Equity - Minority Interests” for net amounts of EUR 186 thousand and
EUR 33 thousand, respectively.
87
The following table shows the sensitivity of the market value of these hedges to interest rate changes:
Thousands of Euros
Change in interest rates
+ 0.25%
- 0.25%
238
(240)
Change in fair value of hedge
VOCENTO uses foreign exchange hedges to mitigate the possible adverse effect of exchange rate fluctuations on the fair value of the payables
associated with the supply agreements for film production distribution rights denominated in US dollars. In 2007 and 2006 the effect of the exchange
rate hedge transactions on the consolidated income statement resulted in charges to “Finance Costs” in the consolidated income statements for 2007
and 2006 of EUR 92 thousand and EUR 146 thousand, respectively (see Note 32).
At 31 December 2007 and 2006, the total nominal value of the items on which foreign exchange hedges had been arranged was as follows:
Thousands
Currency
Euros
US dollars
2007
5,535
6,860
2006
10,572
13,046
This foreign exchange hedge matures in 2008.
At 31 December 2007 and 2006, VOCENTO did not have any derivatives that did not qualify for hedge accounting nor did it hold any such derivative
during those years.
22. DEFERRED INCOME
The changes in “Deferred Income” on the liability side of the consolidated balance sheets at 31 December 2007 and 2006 were as follows:
Thousands of Euros
Grants related to assets
Additions
Amount taken to income
Amount taken to income
3,273
115
(771)
2,617
(541)
2,076
In addition, in 2007 and 2006 the Group took EUR 2,398 thousand and EUR 2,214 thousand, respectively, in connection with grants related to income
with a credit to “Other Income” in the accompanying consolidated income statement for 2007 and 2006, respectively.
88
23. OTHER NON-CURRENT PAYABLES
The breakdown of “Other Non-Current Payables” at 31 December 2007 and 2006 is as follows:
Thousands of Euros
Group insurance (Notes 4-j and 5)
Pension plan (Notes 4-j and 5)
Termination benefits payable (Note 4-r)
Development of technological projects
Other payables
2007
2006
8,408
20,134
2,123
894
10,044
12,347
24,017
1,066
1,458
3,175
41,603
42,063
Group insurance
The Group has secured its commitments to certain of its former employees by taking out a Group insurance policy with a solvent insurance company
of recognised standing. The single premium relating to the policy amounted to EUR 36,770 thousand in 2001, and the Group decided to finance it in
ten annual instalments, as permitted by Article 36 of the Regulations on the instrumentation of Pension Obligations to Employees and Beneficiaries, as
follows:
• Constant annual instalments of EUR 4,767 thousand each, including the related instalment interest (see Note 19).
• Financial surcharge for deferral, calculated using the assumed rate used to calculate the mathematical provisions, resulting in charges of EUR 828
thousand and EUR 1,034 thousand to “Finance Costs” in the accompanying consolidated income statements for 2006 and 2007 (see Note 32).
Pension plan
“Pension Plan” in the accompanying table includes the payments of the outstanding debt under the rebalancing plan for the transfer of the provisions
and funds assigned to make up the deficit established in 2001 by the subsidiary Diario ABC, S.L. (see Note 4-j). These amounts are recognised under
“Non-Current Liabilities - Other Non-Current Payables” and “Current Liabilities - Trade and Other Payables” in the consolidated balance sheet,
depending on the year in which the funds will be transferred (see Note 19).
“Finance Costs” in the accompanying consolidated income statements for 2007 and 2006 includes the cost arising from the discount to present value
of the fund and the shortfall for past services, amounting to approximately EUR 1,183 thousand in both years (see Note 32).
Termination benefits payable
At 31 December 2007, the Group had not yet paid a portion of the termination benefits agreed upon in connection with the termination of the
employment relationships with a group of employees. These debts fall due as follows:
Thousands of Euros
2009
2010
2011
2012 and subsequent years
Total
515
511
427
670
2,123
89
Development of technological projects
The Group has received loans from the Ministry of Industry, Trade and Tourism as aid for the development of technological projects which are not
interest-bearing and mature in 2008, 2009 2010, 2011 and subsequent years amounting to approximately EUR 559 thousand, EUR 328 thousand, EUR
174 thousand and EUR 392 thousand, respectively.
24. DEFERRED TAXES AND INCOME TAX EXPENSE
Since 1997 VOCENTO, S.A. and certain of its subsidiaries subject to Vizcaya corporation tax legislation pay income tax under the Special Consolidated
Tax Regime, with VOCENTO, S.A. as the Parent of the Group (see Appendix). The notification of the composition of the Tax Group for 2007 was
submitted to the Vizcaya Provincial Department of Economy and Finance on 28 December 2007. In addition, on 30 December 2006, the notification of
the composition of a Tax Group subject to Spanish state corporation tax was submitted to the Spanish Ministry of Economy and Finance. This Group is
made up of Comeresa Prensa, S.L.U., as the Parent of the Group, and certain subsidiaries subject to the Spanish state tax legislation (see Appendix).
The detail of “Non-Current Assets - Deferred Tax Assets” and “Non-Current Liabilities - Deferred Tax Liabilities” in the accompanying consolidated
balance sheets at 31 December 2007 and 2006 and of the changes therein is as follows:
Deferred tax assets
Tax loss carryforwards
Other unused tax credits
Deferred tax assets
Total deferred tax assets
01/01/06
Inclusions in
the scope of
consolidation
(Note 35)
Additions
Disposals
Updating of
Tax Rates
31/12/06
Inclusions in
the scope of
consolidation
(Note 35)
15,702
14,689
26,546
56,937
1,954
1,401
3,355
4,932
20,737
868
26,537
(1,137)
(663)
(2,567)
(4,367)
(181)
(256)
(437)
21,270
34,763
25,992
82,025
10,871
10,871
(17,192)
(30,540)
(2,241)
1,093
3,760
(45,120)
-
Disposals
Updating of
Tax Rates 31/12/07
7,523
(9,290)
19,771
(494)
2,851
(5,033)
30,145 (14,817)
(1,097) 29,277
- 54,040
(1,276) 22,534
(2,373) 105,851
Additions
(473)
1,224
1,599 (42,770)
The Group recognises deferred tax assets, tax loss carryforwards and unused tax credits and tax relief only to the extent that their future recovery or
utilisation is sufficiently assured.
The deferred income tax asset relates mainly to timing differences arising from the differences in the timing of recognition for accounting and tax
purposes of the pension and similar obligations (see Notes 4-j, 18, 23) and from the tax deductibility of certain items of goodwill (see Notes 8 and 11).
Law 35/2006 on Personal Income Tax and partially amending the Spanish Corporation Tax, Non-Resident Income Tax and Wealth Tax Laws (not
applicable to the income tax of entities subject to provincial legislation), of 28 November, provides for, inter alia, the reduction over two years of the
standard Spanish corporation tax rate, which was 35% until 31 December 2006, as follows:
Tax periods commencing on
1 January 2007
1 January 2008
Rate
32.5%
30%
The legislation applicable for the settlement of income tax under the Vizcaya Provincial Regulation for 2007 corresponds to the Vizcaya Corporation Tax
Regulation 3/1996, of 26 June. The aforementioned regulation was amended by Legislative Decree 1/2005, of 30 December, which established a tax
rate of 32.6%, effective for years commencing on or after 1 January 2006, and by Vizcaya Regulation 6/2007, of 27 March, which reduced the tax rate
to 28%, effective for the years commencing on or after 1 January 2007. Both amendments remain in force although various appeals have been filed
on which a decision has yet to be handed down.
90
The Company’s directors (and, if applicable, its tax advisers) consider that the final outcome of the various court proceedings and the appeals filed in
connection with income tax will not have a significant impact on the consolidated financial statements taken as a whole and, therefore, the tax for
2007 and for the years open to inspection was calculated in accordance with the Vizcaya Regulations in force at each reporting date.
Consequently, in 2007 the Group adjusted its income tax assets and deferred tax assets, the net effect of which, totalling EUR 774 thousand, was
recognised under “Income Tax on Profit from Continuing Operations” in the accompanying consolidated income statement for 2007.
The table below shows the calculation of the income tax expense for 2007 and 2006:
Thousands of Euros
Consolidated profit before tax
Increases (Decreases) due to permanent differences
· Reversal of permanent differences
· Extraordinary write-downs of goodwill (Note 8)
· Result of companies accounted for using the equity method (Note 10)
· Reinvestment of extraordinary profits
· Other permanent differences
Adjusted accounting profit
Gross tax calculated using the average tax rate
Sundry tax credits
Adjustment of the prior year’s income tax expense
Updating of deferred tax assets and liabilities to the new rates
Adjustment of tax-related provisions (Note 18)
Accrued income tax expense
2007
2006
70,416
91,140
12,974
(47,094)
1,875
(1,714)
6,749
(41,041)
(327)
(3,973)
38,171
11,362
(1,939)
(502)
774
(7,375)
50,834
16,713
(2,409)
(1,029)
(3,323)
-
2,320
9,952
In view of the varying interpretations that may be made of the tax legislation applicable to the transactions performed by the Group, contingent tax
liabilities may exist which cannot be objectively quantified. However, the Group's directors consider that the possibility of such contingent liabilities
arising is remote and, in any event, the tax debt that might arise would not have a material effect on the accompanying consolidated financial
statements.
In general, at 31 December 2007, both the Parent and the other consolidated companies subject to the provincial legislation of Vizcaya have the last
three years open for review by the tax authorities for the taxes applicable to them. However, for the years ended after the entry into force of Vizcaya
Provincial Regulation 2/2005, the statute-of-limitations period has been extended to four years. The other Group companies generally have the last four
years open for review for the taxes applicable to them.
25. TAX RECEIVABLES AND PAYABLES
The breakdown of “Tax Receivables” and “Tax Payables” on the asset and liability sides, respectively, of the accompanying consolidated balance sheets
at 31 December 2007 and 2006 is as follows:
91
Thousands of Euros
Current assets - Tax receivablesIncome tax refundable
VAT refundable
Tax withholdings and prepayments
Sundry tax receivables
Social security taxes refundable
Current liabilities - Tax payables
VAT payable
Tax withholdings payable
Income tax payable
Other tax payables
Accrued social security taxes payable
2007
2006
2,474
11,728
953
1,441
28
1,858
12,450
1,874
287
46
16,624
16,515
6,376
11,013
8,458
245
5,195
6,317
8,563
10,268
133
3,970
31,287
29,251
26. BUSINESS SEGMENT REPORTING
The main methods used to define the Group's segment reporting included in the accompanying consolidated financial statements are as follows:
Segment reporting is based on the organisational units on which information is submitted to the entity's managing body and chief executive officer so
that they may assess the unit's past performance and take decisions on the future allocations of resources.
Information is presented on the main segments and the “Structure and Other” column includes the data relating to segments which are not broken
down individually because they are not considered material, together with adjustments and eliminations on consolidation.
As a result, complete information is provided on the following business segments:
• Printed media: basically the sale of regional newspapers, free press, the national daily ABC and its supplements and magazines, together with the
advertising revenue generated by them.
• Audiovisual: this encompasses television (local and digital), radio and producers of content.
• Internet: sales of advertising and content, mainly of the various portals, revenue from integral services, e-commerce, etc.
• Other businesses: this encompasses mainly revenue from printing and distributing press and others (free press, international press, etc.)
The methods used by the Group to obtain these financial statements segmented by line of business were as follows:
• In general, the assets, liabilities, expenses and income of any type corresponding exclusively or directly to each line of business were allocated to it.
• The assets for general use are presented in the “Structure and Other” column and are not distributed among segments. However, the costs and
income, if any, associated with such assets are distributed among segments.
No operations have been discontinued and Group management does not intend to discontinue any operation in the future, discontinuation being
defined as the separation from the Group (by sale, spin-off, liquidation or similar) of a line of business or geographical area of operations, except as
discussed in Note 7. The Group does not disclose any information on geographical segments, since substantially all the sales by the consolidated
companies are made in Spain and, in addition, Group management does not use geographical criteria as a management strategy within Spain.
Segment information for 2007 and 2006 about the Group's business is presented below:
92
BUSINESS SEGMENTS IN 2007
(Thousands of Euros)
PRINTED MEDIA
AUDIOVISUAL
INTERNET
REVENUE
External sales
Sale of copies
Advertising sales
Other income
Inter-segment sales
Sale of copies
Advertising sales
Other income
563,881
145,618
364,676
53,587
101,146
75,825
842
24,479
107,418
34,399
73,019
2,371
71
2,300
50,549
189
15,583
34,777
6,126
24
150
5,952
189,970
122,029
6,370
61,571
32,895
119
415
32,361
6,192
6
357
5,829
(142,538)
(75,968)
(1,478)
(65,092)
918,010
267,842
421,385
228,783
-
Total sales
665,027
109,789
56,675
222,865
(136,346)
918,010
EXPENSES
Procurements
Staff costs
Change in operating allowances and other
Outside services
86,766
173,021
14,658
678
293,248
143
31,347
23,746
321
89,992
12,385
18,407
1,908
209
18,866
156,419
21,775
8,349
378
30,777
(88,369)
36,956
1,236
83
(55,448)
167,344
281,506
49,897
1,669
377,435
96,656
8,275
(4,343)
(297)
(226)
-
(35,760)
928
(2,659)
(12,677)
46,346
-
4,900
205
(684)
-
5,167
1,046
(1,128)
1,956
-
(30,804)
(5,652)
(1,203)
333
40,159
4,802
(10,017)
(12,974)
48,076
333
(3,372)
96,693
(24,482)
286
(3,536)
2,339
(22)
4,399
(1,796)
(158)
6,883
1,967
3,303
(34,023)
19,652
37
70,416
(2,320)
(14,745)
57,466
10,013
8,816
(1,416)
1,187
1,027
(922)
8,955
20,403
(288)
5,744
21,430
(7,358)
82,168
15,336
24,068
2,117
8,726
1,320
51,567
10,651
18,419
4,735
25,898
2,783
62,486
ASSETS
Investments accounted for using the equity method
Current financial assets
Deferred tax assets
Other assets
Total consolidated assets
(281)
14,682
37,169
666.270
717,840
106,197
2,881
5,893
199,515
314,486
3,776
767
42,116
46,659
5,980
6,120
2,586
120,073
134,759
(16,960)
59,436
(89,325)
(46,849)
111,896
10,499
105,851
938,649
1,166,895
LIABILITIES
Bank borrowings
Other liabilities and equity
Total consolidated liabilities and equity
50,757
10,490
656,593
717,840
9,707
18,959
285,820
314,486
364
120
46,175
46,659
20,961
372
113,426
134,759
70,741
12,829
(130,419)
(46,849)
152,530
42,770
971,595
1,166,895
PROFIT/LOSS
Segment profit/loss
Finance income
Finance costs
Results of investees
Admission to listing costs
Gain/Loss on disposal of non-current
assets/control portfolio and asset impairment
Profit/(loss) before tax
Income tax
Profit/(loss) after tax on assets held for sale
and discontinued operations
Profit/Loss attributable to minority interests
Profit/Loss attributable to the Parent
OTHER INFORMATION
Depreciation and amortisation charge and
expenses other than depreciation and
amortisation not involving an outflow of cash
Costs incurred in the year in the acquisition
of property, plant and equipment and other
intangible assets
OTHER BUSINESSES
STRUCTURE AND OTHER
TOTAL
93
BUSINESS SEGMENTS IN 2006
(Thousands of Euros)
PRINTED MEDIA
INTERNET
OTHER BUSINESSES
STRUCTURE AND OTHER
TOTAL
REVENUE
External sales
Sale of copies
Advertising sales
Other income
Inter-segment sales
Sale of copies
Advertising sales
Other income
Total sales
534,764
144,135
336,489
54,140
100,603
77,117
771
22,715
635,367
96,162
27,664
68,498
2,163
104
2,059
98,325
35,667
9,275
26,392
7,069
216
6,853
42,736
187,511
124,938
6,862
55,711
30,547
69
2
30,476
218,058
18,768
7
13,461
5,300
(140,382)
(77,186)
(1,093)
(62,103)
(121,614)
872,872
269,080
393,751
210,041
872,872
EXPENSES
Procurements
Staff costs
Change in operating allowances and other
Outside services
82,363
157,068
14,769
(1,103)
263,799
170
34,018
15,944
146
90,580
10,875
13,115
1,606
304
13,256
157,817
20,417
8,093
572
26,966
(88,350)
27,726
1,222
(2,360)
(39,002)
162,875
252,344
41,634
(2,441)
355,599
118,471
6,165
(3,001)
(156)
-
(42,533)
1,184
(1,722)
(6,749)
41,520
-
3,580
175
(437)
-
4,193
809
(338)
1,776
-
(20,850)
753
(1,498)
(11,960)
62,861
9,086
(6,996)
(6,749)
43,140
(11,960)
(3,524)
117,955
(37,366)
21
(8,279)
6,307
3,318
(1,233)
1,357
7,797
(2,063)
3,904
(29,651)
24,403
1,758
91,140
(9,952)
(12,709)
67,880
9,879
7,907
(511)
1,574
1,379
(1,169)
5,944
(492)
(5,740)
1,379
(5,002)
77,565
13,666
16,090
1,909
8,665
(1,136)
39,194
13,091
11,349
3,168
9,384
1,792
38,784
ASSETS
Investments accounted for using the equity method
Current financial assets
Deferred tax assets
Other assets
Total consolidated assets
(341)
20,627
18,146
513,420
551,852
101,867
6,159
6,440
213,954
328,420
2,963
648
34,572
38,183
7,807
5,648
2,798
94,326
110,579
43,557
53,993
(71,372)
26,178
109,333
78,954
82,025
784,900
1,055,212
LIABILITIES
Bank borrowings
Other liabilities and equity
Total consolidated liabilities and equity
26,295
10,861
514,696
551,852
13,453
21,597
293,370
328,420
331
37,852
38,183
260
506
109,813
110,579
13,917
12,156
105
26,178
54,256
45,120
955,836
1,055,212
PROFIT/LOSS
Segment profit/loss
Finance income
Finance costs
Results of investees
Admission to listing costs
Gain/Loss on disposal of non-current
assets/control portfolio and asset impairment
Profit/(loss) after tax
Income tax
Profit/(loss) before tax in assets held for sale
and discontinued operations
Profit/Loss attributable to minority interests
Profit/Loss attributable to the Parent
OTHER INFORMATION
Depreciation and amortisation charge and
expenses other than depreciation and
amortisation not involving an outflow of cash
Costs incurred in the year in the acquisition
of property, plant and equipment and other
intangible assets
94
AUDIOVISUAL
27. REVENUE
The breakdown of “Revenue” in the accompanying consolidated income statements for 2007 and 2006 is as follows:
Thousands of Euros
2007
Sales of copies
Advertising sales
Direct revenue from promotions
Revenue from deliveries
Other audiovisual segment revenue
Other income
2006
267,842
421,385
51,805
8,815
71,714
92,569
269,080
393,751
49,890
8,266
67,182
81,133
914,130
869,302
28. PROCUREMENTS
The breakdown of “Procurements” in the accompanying consolidated income statements for 2007 and 2006 is as follows:
Thousands of Euros
Paper
Raw materials
Newspaper purchases
Other materials consumed
2007
2006
84,047
9,077
41,575
32,645
79,667
7,981
42,492
32,735
167,344
162,875
29. STAFF COSTS
The detail of “Staff Costs” in 2007 and 2006 is as follows:
Thousands of Euros
Wages and salaries
Employer social security costs
Termination benefits (Notes 4-r and 39)
Other employee benefit costs
Costs of share-based payments (Note 4-q)
Contributions to pension plans and similar obligations and insurance premiums
for the coverage of other retirement contingencies (Note 4-j)
2007
2006
208,931
43,960
21,859
4,015
316
196,115
40,171
9,569
3,374
49
2,425
3,066
281,506
252,344
95
The average number of employees at the Group in 2007 and 2006, by professional category, was as follows:
Number of employees
2007
2006
Executives
Middle managers
Employees
327
722
4,027
303
719
3,752
Total
5,076
4,774
30. OUTSIDE SERVICES
The breakdown of “Outside Services” in the accompanying consolidated income statements for 2007 and 2006 is as follows:
Thousands of Euros
2007
Editorial services and artistic media
Sales
Administrative services
Print shop and technical media
Distribution
Sundry
2006
75,761
120,025
29,619
66,217
55,756
30,057
69,588
110,831
28,895
64,654
49,044
32,587
377,435
355,599
Sales expenses include the costs of various promotional campaigns totalling EUR 59,363 thousand and EUR 59,897 in 2007 and 2006, respectively.
31. FINANCE INCOME
The detail of “Finance Income” in the accompanying consolidated income statements for 2007 and 2006 is as follows:
Thousands of Euros
2007
2006
Income from equity investments
Gain on disposal of marketable securities
Other interest and similar income
Exchange gains
280
4,512
10
327
3,408
5,344
7
Total
4,802
9,086
"Other Interest and Similar Income" includes basically the finance income from deposits (see Note 16) held by the Group companies during the year.
96
32. FINANCE COSTS
The detail of "Finance Costs" in the accompanying consolidated income statements for 2007 and 2006 is as follows:
Thousands of Euros
Finance costs relating to group insurance and pension plans (Note 23)
Losses due to changes in fair value (Note 13)
Interest on bank borrowings (Note 21)
Gain on financial derivatives (Note 21)
Other finance costs
Total
2007
2006
2,011
533
4,609
92
2,772
2,217
374
2,323
146
1,936
10,017
6,996
33. NET GAIN ON DISPOSAL OF NON-CURRENT ASSETS
The detail of "Net Gain on Disposal of Non-Current Assets" in the consolidated income statements for 2007 and 2006 is as follows:
Thousands of Euros
2007
Gains/ (Losses)
Net gain on disposal of intangible assets, property, plant and equipment
and financial assets (Notes 9, 10 and 11)
Net gain on disposal of investments in associates (Note 11)
Net gain on disposal of investments in Group companies (Note 17)
Total
2006
(136)
(630)
973
660
948
-
207
1,608
34. OTHER PROFIT AND LOSS
"Other Profit and Loss" in the consolidated income statement for 2006 includes the expenses incurred by the Group as a result of its admission to
listing. These expenses include those incurred in legal and commercial advertising, legal and financial advisory services and the services provided by the
Group's main auditor (see Note 42).
In 2007 the annuity income granted to the former Chairman, amounting to EUR 3,167 thousand, was paid and therefore “Other Profit and Loss”
includes income of EUR 333 thousand resulting from the difference between the amount expected to be paid and the amount ultimately paid (see Note
2-c).
97
35. ACQUISITION OF SUBSIDIARIES
2007
The main acquisitions of subsidiaries in 2007 were as follows:
• In August 2007 the Company acquired all the shares of Factoría de Información, S.A. (publisher of the free newspaper “Qué!”) for EUR 132
million, which gave rise to goodwill of approximately EUR 119 million (see Note 8).
The assets and liabilities acquired are summarised as follows:
Thousands of Euros
Fair value
Net assets acquired:
Deferred tax assets
Accounts receivable
Tax receivables
1,116
298
10,871
12,816
57
(903)
(11,401)
12,854
The carrying amount prior to the business combination coincides with fair value.
Through this acquisition the Group obtained the customers and contacts of Factoría de Información, S.A. Since these assets cannot be separated
and sold, transferred, leased or exchanged individually or together with other related portions from the rest of the Group, they cannot be
measured reliably and, therefore, cannot be separated from the rest of goodwill.
• In April 2007 the Group acquired all the share capital of Bitmailer, S.L. for EUR 1,867 thousand, giving rise to goodwill of approximately EUR
1,627 thousand (see Note 8). The carrying amount of the subsidiary prior to the business combination coincides with fair value. The assets and
liabilities acquired are detailed as follows:
Thousands of Euros
Fair value
Other non-current assets
Inventories
Accounts receivable
Provisions for contingencies and expenses
Tax receivables
33
2
1
56
416
(47)
(82)
(139)
240
In June 2007 Bitmailer, S.L. was merged by absorption into the subsidiary Sarenet, S.A. and its assets were included at the carrying amount at
which they had been recognised at the former company, effective from 1 January 2007.
98
The Group’s consolidated profit includes losses of EUR 2,813 thousand incurred between August and December as a result of the acquisition of Factoría
de Información, S. A.
Sales would have risen by EUR 20,801 thousand and the Group's net profit would have increased by approximately EUR 4,852 thousand had the
business combination of Factoría de Información, S.A. occurred on 1 January 2007.
The directors took the following into account when determining the pro forma sales and results that would have been obtained had the business
combinations occurred on 1 January 2007:
• Amortisation and depreciation were calculated on the basis of the fair value of the assets accounted for in the business combination rather than
on the basis of their values prior to the acquisition.
• Finance costs were calculated by taking into consideration the level of indebtedness, creditworthiness and debt/equity ratio after the business
combination.
2006
The main acquisitions of subsidiaries in 2006 were as follows:
• In February 2006 the Group acquired 15,992 shares, representing 21% of the share capital of Federico Doménech, S.A. for approximately EUR
41,657 thousand, giving rise to goodwill of EUR 31,519 thousand.
The Group held an ownership interest of 36.42% (see Note 11) and, accordingly, gained control of the company, which is now fully consolidated.
The detail of the net assets of Federico Doménech, S.A. and subsidiaries is as follows:
Thousands of Euros
Carrying amount of
the subsidiary prior to
the business combination
Fair value
adjustments
Fair value
Goodwill
Financial assets
Deferred tax assets
Inventories
Accounts receivable
Minority interests
Provisions
20,960
370
412
4,400
3,355
1,256
10,834
1,145
(154)
(634)
(32)
(9,484)
3,211
19,429
(6,800)
-
24,171
370
412
23,829
3,355
1,256
10,834
1,145
(154)
(634)
(6,832)
(9,484)
Total
32,428
15,840
48,268
“Financial Investments” includes an ownership interest of 16% in the subsidiary Taller de Editores, S.A., amounting to EUR 14 million after fair
value adjustments. As a result, the Group's percentage of ownership increased to 76.04%.
99
Through this transaction the Group acquired the customers and contacts of Federico Doménech S.A. Since these assets cannot be separated and
sold, transferred, leased or exchanged individually or together with other related portions from the rest of the Group, they could not be measured
reliably and, therefore, could not be separated from the rest of goodwill.
Also, VOCENTO granted a put option to the other shareholders of Federico Doménech whereby the Group must acquire the shares that they wish
to sell between 2008 and 2012 at market price on the date on which the offer is made.
Since the exercise price of the options is the market price, the Group considers that the value of the options is zero and, therefore, did not
recognise any assets or liabilities in this connection.
• In May 2006 the Group acquired a direct investment of 12,000 shares of Tripictures, S.A. for EUR 51 million representing 66.67% of its share
capital.
Thousands of Euros
Financial assets
Inventories
Accounts receivable
Provisions
Total
Carrying amount of
the subsidiary prior to
the business combination
Fair value
adjustments
261
38,018
57
756
33,981
9,571
(124)
(81,107)
69,477
(23,700)
(611)
261
107,495
57
756
33,981
9,571
(124)
(23,700)
(81,718)
1,413
45,166
46,579
Fair value
Pursuant to the purchase agreement, the Group granted a put option to the other shareholders on all the shares, to be exercised between 1 May
2008 and 31 July 2008 for a price equal to the percentage value of the Tripictures shares. Since the exercise price of the options is the market
price, the Group considers that the value of the options is zero and, therefore, did not recognise any assets or liabilities in this connection.
• In February 2006 the Group acquired from a related party (see Note 37) 647,019 shares of Sociedad Infoempleo, S.L. (formerly Círculo del
Progreso, S.L.) for EUR 7.4 million, representing a direct ownership interest of 51% of its share capital.
100
Thousands of Euros
Fair value
Inventories
Accounts receivable
126
540
29
1,770
443
(8)
(806)
2,094
In accordance with the agreement for the acquisition of this ownership interest, prior to 31 July 2008 the initial price paid may be adjusted on the
basis of compliance with certain financial parameters. At 31 December 2007, the directors of the Parent did not considering recognising any
additional amount as an addition to the ownership interest since the additional work required to calculate the aforementioned adjustment in an
objective and reliable manner had not been performed.
• Lastly, the Group acquired various ownership interests in companies engaging mainly in magazine publishing and website management. The
assets and liabilities acquired are summarised as follows:
Thousands of Euros
Fair value
Inventories
Accounts receivable
Total
378
177
177
4,572
2,128
(3,279)
4,153
The carrying amount of the subsidiaries prior to the business combinations coincides with fair value.
The acquisition cost of these subsidiaries amounted to EUR 10,582 thousand and the Group recognised goodwill of EUR 8,349 thousand. In
addition, in accordance with the agreement for the acquisition of Autocasión Hoy, S.A. (formerly Maxi Press, Comunicación, S.A.) the price paid
was adjusted in 2007 on the basis of the results for 2006, whereby goodwill was reduced by EUR 231 thousand (see Note 8).
Also, the Group granted two of the former shareholders a put option on the ownership interest in Unión Operativa de Autos, S.L., to be exercised
in 2008 for a price that depends on the aforementioned company’s EBITDA. The Group considers that the value of this option is not material and,
therefore, did not recognise any assets or liabilities in this connection.
101
36. EARNINGS PER SHARE
The reconciliation at 31 December 2007 and 31 December 2006 of the number of ordinary shares used in the calculation of earnings per share is as
follows:
2007
2006
Number of shares
Number of treasury shares (Note 17)
124,970,306
(2,224,675)
124,970,306
(2,224,675)
Total
122,745,631
122,745,631
The basic earnings per share from continuing operations in 2007 and 2006 are as follows:
Net profit for the year attributed to the Parent (thousands of euros)
Number of shares (thousands of shares)
Basic earnings per share (euros)
2007
2006
60,738
122,746
76,186
122,746
0.49
0.62
The basic earnings per share from discontinued operations in 2007 and 2006 are as follows:
Net profit (thousands of euros)
Number of shares (thousands of shares)
Basic earnings per share (euros)
2007
2006
21,430
122,746
1,379
122,746
0.17
0.01
At 31 December 2007 and 2006, VOCENTO, S.A., the Parent of the Group, had not issued any financial instruments or other items entitling the holder
to receive ordinary shares of the Company. As a result, the diluted earnings per share match the basic earnings per share.
102
37. BALANCES AND TRANSACTIONS WITH OTHER RELATED PARTIES
The breakdown, by company of the balances of "Trade and Other Receivables - Receivable from Related Parties" and "Trade and Other Payables Payable to Related Parties" in the accompanying consolidated balance sheet at 31 December 2007, and of the transactions (in addition to the dividends
received – see Note 11) performed with such companies in 2007 by VOCENTO, S.A. and by the fully consolidated subsidiaries is as follows:
Thousands of Euros
Balances
Transactions
Receivable
(Note 15)
Payable
(Note 19)
Operating
income
Operating
expenses
Cirpress, S.L.
Val Disme, S.L.
Distrimedios, S.A.
Videomedia, S.A.
873
10,144
1,462
2,604
1,962
273
5
62
162
2,022
172
18
215
89
100
153
37
7,672
19,196
10,001
26,428
29,802
1
55
46
889
333
1,370
2,672
3,607
1,622
32
TOTAL
17,385
2,968
93,201
10,525
The breakdown, by company of the balances of "Trade and Other Receivables - Receivable from Related Parties" and "Trade and Other Payables Payable to Related Parties" in the accompanying consolidated balance sheet at 31 December 2006, and of the transactions performed with such
companies in 2006 by VOCENTO, S.A. and by the fully consolidated subsidiaries is as follows:
Thousands of Euros
Balances
Receivable
(Note 15)
Transactions
Payable
(Note 19)
Operating
income
Operating
expenses
Cirpress, S.L.
Corp. Inversora en Medios de Comunicación, S.A.
Rotok Industria Gráfica, S.A.
Val Disme, S.L.
Distrimedios, S.A.
Producciones Antares Media, S.L.
Grupo de Productores Independientes, S.L.
Videomedia, S.A.
796
17
1,590
2,528
2,776
17
217
9
-
650
78
15
262
427
3
100
68
18
7,912
51
9,830
2
25,260
15,756
1
3
81
-
678
776
102
1,964
1,337
2
276
217
97
19
TOTAL
7,950
1,621
58,896
5,468
103
The principal balances and transactions with companies accounted for using the equity method relate to the sale and distribution of copies of
newspapers and supplements performed under normal market conditions. Since the aforementioned balances are trade balances, they are not interestbearing and, in general, they will be paid at short term.
At 31 December 2007 and 2006, the Group companies had not granted any credit lines or loans to related parties.
38. REMUNERATION OF DIRECTORS
In 2007 and 2006 the consolidated companies paid the following remuneration to the Group's Board members:
Thousands of Euros
2007
Fixed and variable remuneration
Board and committee meeting attendance fees
Profit-sharing payment
Total
2006
7,926
629
1,486
2,553
412
1,979
10,041
4,944
No advances, loans, credit facilities or guarantees were granted to the directors in 2007 or in 2006.
The life insurance payments made in 2007 in relation to the policies whose coverage affects directors amounted to EUR 28 thousand and EUR 62
thousand in 2007 and 2006, respectively.
With respect to pension commitments, the contributions to pension plans whose beneficiaries are Board members amounted to EUR 189 thousand and
EUR 188 thousand at 2007 and 2006 year-end, respectively.
Until his resignation on 27 January 2008 (see Note 43), the relationship between the CEO Belarmino García and VOCENTO, S.A. was regulated by a
senior management contract signed for a 10 year term. The contract established an annual fixed remuneration of EUR 680,004 and an annual variable
remuneration of EUR 320,000.
In addition, it provided for the possibility of receiving variable remuneration deferred until the third year in the event of achieving certain targets for the
share price and the Group’s EBITDA. The CEO was also entitled to receive certain payments in kind (life, medical, third party and personal liability
insurance and a company car) in addition to the aforementioned monetary remuneration.
The clauses of the contract provided for a period of advance notice for the termination thereof and an indemnity of 3.5 years’ total remuneration or
three years’ fixed remuneration plus 55% of the variable remuneration of the last year on the basis of the time of termination of the contract. It also
included a two-year non-competition clause, amounting to a year’s remuneration.
The breakdown, by Board member, of the remuneration of the directors in 2007 is as follows:
104
REMUNERATION OF DIRECTORS
Thousands of Euros
Profit-Sharing
Payment
Attendance Fees
VOCENTO, S.A.
Board of Direct.Committees
Subsidiaries
VOCENTO,
S.A.
Subsidiaries
Contributions to
Pension Plans,
Life Insurance
and Other
VOCENTO,
S.A.
Other
Remuneration Remuneration of
Termination
of
Directors for Senior
Benefits
Directors
Executive Functions
Subsidiaries
VOCENTO,
S.A.
Fixed
Variable
VOCENTO, VOCENTO,
Subsidiaries
S.A.
S.A.
Total
DIRECTORS AT 31 DECEMBER 2007
22
10
11
453
68
-
-
3,167
-
-
-
20
33
8
48
38
-
-
-
-
-
-
3,731
147
23
10
10
48
30
201
-
3,000
-
617
500
4,439
23
10
10
48
53
-
-
-
-
-
-
144
Mezouna (D. Ignacio Ybarra Aznar)
23
30
1
48
7
-
-
-
-
-
-
109
Santigo Bergareche Busquet
23
7
-
48
7
-
-
-
-
-
-
85
16
33
5
48
15
-
-
-
-
-
-
117
Claudio Aguirre Pemán
22
11
-
32
-
-
-
-
-
-
-
65
23
8
8
48
30
-
13
-
276
-
-
406
23
22
19
48
30
-
1
-
37
-
-
180
Álvaro Ybarra Zubiria
23
22
-
48
-
-
-
-
-
-
-
93
María del Carmen Careaga
16
-
-
33
-
-
-
-
-
-
-
49
Diego del Alcazar Silvela
25
15
-
185
-
-
-
-
-
-
-
225
22
-
-
33
-
-
-
-
-
-
-
55
20
-
2
33
7
-
-
-
-
-
-
62
20
-
-
-
-
-
-
-
-
331
-
351
344
211
74
1,201
285
201
14
6,167
313
948
500
10,258
Total remuneration of directors
39. REMUNERATION OF SENIOR EXECUTIVES
The staff costs (cash remuneration, payment in kind, social security contributions, etc.) relating to the General Managers making up the Parent's
Management Committee - excluding those who are also members of the Board of Directors (whose remuneration is shown above) - amounted to EUR
3,639 thousand in 2007 and EUR 2,663 thousand in 2006.
The aforementioned amount includes an indemnity payment of EUR 756 thousand (see Note 29), resulting from the termination of a senior manager
in 2007.
Senior management contracts include a clause establishing the indemnity to be paid in the event of unjustified dismissal, which varies from the amount
set in labour law to up to three years’ gross annual salary. The contracts of lower level executives only exceptionally include clauses of this type and
provide for an indemnity of one year’s gross salary.
105
40. OTHER DISCLOSURES CONCERNING THE BOARD OF DIRECTORS
Pursuant to Article 127 ter.4 of the Spanish Companies Law, introduced by Law 26/2003, of 17 July, which amends Securities Market Law 24/1988, of
28 July, and the Consolidated Spanish Companies Law, following is a detail of the significant ownership interests of the members of the Board of
Directors of the Parent in the share capital of companies engaging in an activity that is identical, similar or complementary to the activity that constitutes
the company object of both the Parent and the Group, of which the Parent was notified, indicating the positions or functions discharged thereat:
Owner
Álvaro de Ybarra Zubiria
Atlanpresse, S.A.R.L.
Mezouna, S.L.
106
Investee
Activity
Sociedad Vascongada
Diario ABC, S.L.
Sociedad Vascongada
Sociedad Vascongada
Diario ABC, S.L.
Merca Red, S.A.
Sociedad Vascongada
VOCENTO, S.A.
Diario ABC, S.L.
Sociedad Vascongada
Diario ABC, S.L.
Sociedad Vascongada
S.E.P.L.
Dordogne Libre
Surf Session
Société de Gratuit d'Information
SNEM
Société du Journal Midi Libre
Recoletos
Pearson
Sociedad Vascongada
Ownership interest
0.7163%
Functions
Chairman
0.0002%
0.2780%
Director
Deputy Chairman
0.1072%
Director
Television
Publications
0.0002%
0.005%
0.74%
0.2042%
Director
Chairman
-
Communications
6.2804%
0.0002%
0.0235%
Deputy Chairman
Chairman
-
Book publishing
95%
0.0002%
0.0135%
Sole Director
Deputy Chairman
-
Press
Press
Press
Press
Press
Press
Press
Press
Media
Media
99.99%
99.98%
99.00%
100.00%
100.00%
100.00%
5%
47.4%
0.0023%
0.0055%
0.21%
-
Also, as provided for by the relevant Law, set forth below are the activities additional to those stated in the foregoing table performed by the directors,
as independent professionals or as employees, that are identical, similar or complementary to the activity that constitutes the company object of the
Parent:
Positions or
functions at
the company
concerned
Type of
arrangement
Company through
which the activity
is performed
Diario ABC, S.L.
Media
Comeresa Prensa, S.L.U.
Media
Corporación de Medios de Comunicación, S.L.U.
Media
Media
Corporación de Medios de Nuevas Tecnologías, S.L.U.
Media
Corporación de Medios Internacionales de Prensa, S.A.U.
Media
Corporación de Nuevos Medios Audiovisuales, S.L.U
Media
Corporación de Nuevos Medios Digitales, S.L.U.
Media
Desarrollo de Clasificados, S.L.U.
Media
Boca Boca Producciones, S.L.
Production
Pantalla Digital, S.L.U.
Television
Sociedad Gestora de Televisión NET TV, S.A.
Television
-
Director
Director
Director
-
Chairman
Director
Director
Diario ABC, S.L.
Radio Publi, S.L.
Television
Radio
-
Director
Director
Director
Chairman
-
Director
Director
News agency
Advertising sales
-
Chairman
Chairman
-
Director
Name
Agencia de Televisión Latinoamericana de
Servicios y Noticias España, S.A.
Publiespaña, S.A.
Activity performed
107
Activity performed
Type of
arrangement
Sociedad Gestora de TV Onda 6, S.A.U.
Radio Publi, S.L.
Corporación de Medios de Cádiz, S.L.U.
Estudios de Política Exterior, S.A.
ABC de Sevilla, S.L.
Television
Radio
Magazine publishing
-
Director
Director
Director
Director
Director
Director
Director
Director
ABC de Sevilla, S.L.U.
-
Chairman
-
Director
Director
El Comercio, S.A.
Nueva Rioja, S.A.
-
Director
Director
Director
Director
Director
Director
-
Director
ONO, S.A.
Telecommunications
-
Director
Hélene Lemoîne
SAPESO, S.A.
Director
Director
Ignacio Ybarra Aznar
Prensa Malagueña, S.A.
-
Director
Director
Name
41. GUARANTEE COMMITMENTS TO THIRD PARTIES
At 31 December 2007, the detail of the main guarantees received by the Group, by type, are as follows:
Item
108
Positions or
functions at
the company
concerned
Company through
which the activity
is performed
Thousands of Euros
Operation of public digital terrestrial radio broadcasting service
Operation of digital television service and obligations acquired
Grants and loans for the development of technological projects
Advances to television channels
Other
19,210
10,903
1,425
1,375
2,515
Total
35,428
The Parent's directors estimate that any liabilities additional to the provisions recognised at 31 December 2007 for such purpose which might arise as
a result of the guarantees received would not be material.
42. FEES PAID TO AUDITORS
In 2007 and 2006 the fees for financial audit services provided to the Group companies by the main auditor and by other entities related to it totalled
EUR 1,468 thousand and EUR 1,991 thousand, respectively. The fees for the same services paid to other auditors participating in the audit of various
Group companies amounted to EUR 177 thousand in 2007. No expense was recognised in this connection in 2006.
Additionally, the fees for other advisory services provided to the various Group companies by the principal auditor and by other entities related to the
auditor amounted to EUR 239 thousand and EUR 751 thousand in 2007 and 2006, respectively.
43. EVENTS AFTER THE BALANCE SHEET DATE
There were no significant events between 31 December 2007 and the preparation of the Company’s consolidated financial statements that might
affect the fair presentation of the 2007 consolidated financial statements.
On 28 January 2008, the Board of Directors of VOCENTO, S.A. unanimously resolved to accept the resignation of the Chief Executive Officer, Belarmino
García Fernández, and to appoint José Manuel Vargas Gómez as the new Chief Executive Officer.
Also, on 12 February 2008, The Walt Disney Company Iberia, S.L. (TWDCI) undertook to acquire, subject to the administrative authorisation of the
competent authorities, 20% of the share capital of Sociedad Gestora de Televisión NET TV, S.A. (NET TV), holder of a Spanish digital terrestrial television
concession valued at approximately EUR 27 million. Apart from TWDCI, the shareholders of NET TV are Pantalla Digital, S.L. (wholly controlled by
VOCENTO), with an ownership interest of 55%, and Homo Videns, S.A. (INTERECONOMÍA), which holds 25% of the share capital. This acquisition
enables TWDCI to offer NET TV its experience in the development of competitive television channels and to contribute to a more extensive distribution
of the current content of the company.
44. AUTHORISATION FOR ISSUE OF THE CONSOLIDATED FINANCIAL STATEMENTS
The consolidated financial statements for the year ended 31 December 2007 were authorised for issue by the directors of VOCENTO, S.A. on 28
February 2008.
45. EXPLANATION ADDED FOR TRANSLATION TO ENGLISH
These consolidated financial statements are presented on the basis of IFRSs, as adopted by the European Union. Certain accounting practices applied
by the Group that conform with IFRSs may not conform with other generally accepted accounting principles.
109
Appendix
SUBSIDIARIES OF THE GROUP OF COMPANIES
OF WHICH VOCENTO, S.A. IS THE PARENT
110
Company
Location
Line of business
Ownership interest
Direct
Indirect
Control
Paid-in
capital
Thousands of Euros
Profit (Loss)
for the
Interim
Reserves
year (1)
dividend
GROUP:
Printed media
Diario ABC, S.L.
Madrid
Daily press
99.99%
-
99.99%
6,100
38,500
(12,485)
-
Diario El Correo, S.A.U. (a) (c)
Bilbao
Daily press
-
100.00%
100.00%
8,000
29,707
22,611
(18,747)
(13,100)
Sociedad Vascongada de Publicaciones, S.A. (a) (c) San Sebastián Daily press
-
75.81%
75.81%
4,799
27,809
18,797
Editorial Cantabria, S.A. (d)
Santander
Daily press
-
85.91%
85.91%
2,367
5,343
8,776
(6,955)
Nueva Rioja, S.A.
Logroño
Daily press
-
58.92%
58.92%
1,000
6,290
2,267
(1,693)
Corporación de Medios de Murcia, S.A. (d)
Murcia
Daily press
-
97.61%
97.61%
3,333
12,515
6,105
(4,966)
Corporación de Medios de Andalucía, S.A. (d)
Granada
Daily press
-
98.20%
98.20%
3,333
9,852
4,284
(3,333)
Corporación de Medios de Extremadura, S.A. (d)
Badajoz
Daily press
-
97.07%
97.07%
1,667
4,017
755
(500)
Prensa Malagueña, S.A. (d)
Malaga
Daily press
-
87.82%
87.82%
4,950
14,829
7,032
(5,327)
El Norte de Castilla, S.A. (d)
Valladolid
Daily press
-
76.49%
76.49%
2,168
14,184
5,468
(4,545)
El Comercio, S.A.
Gijón
Daily press
-
51.46%
51.46%
105
7,377
2,055
(1,518)
Corp. Medios de Cádiz, S.L.U. (d)
Cádiz
Daily press
-
100.00%
100.00%
450
2,142
(2,175)
-
Valencia
Daily press
-
57.42%
57.42%
458
26,477
6,934
(4,341)
Madrid
Free press
100.00%
-
100.00%
13,300
(5,298)
(2,039)
-
Madrid
Supplement publishing
-
76.04%
76.04%
1,763
6,209
8,778
(2,900)
Taller de Ediciones Corporativas, S.L.U.
Madrid
Content marketing
-
76.04%
100.00%
290
2,772
288
-
-
39.57%
52.04%
96
1,224
770
-
and magazine publishing
Inversor Ediciones, S.L.
Madrid
Economic magazine
publishing
Taller de Editores Motor, S.L.
Madrid
Magazine publishing
-
45.63%
60.00%
58
209
(218)
-
ABC Castilla-La Mancha, S.L.U.
Toledo
Publishing house
-
99.99%
100.00%
60
-
-
-
ABC Castilla y León, S.L.U.
Valladolid
Publishing house
-
99.99%
100.00%
60
-
-
-
ABC Cataluña, S.L.U.
Barcelona
Publishing house
-
99.99%
100.00%
60
-
-
-
Diario ABC de Valencia, S.L.U.
Valencia
Publishing house
-
99.99%
100.00%
60
-
-
-
ABC de Córdoba, S.L.U.
Córdoba
Publishing house
-
99.99%
100.00%
60
-
-
-
ABC Sevilla, S.L.U.
Seville
Publishing house
-
99.99%
100.00%
600
13,967
(1,797)
-
Gala Ediciones, S.L. (b)
Madrid
Magazine publishing
-
76.04%
100.00%
3
-
11
-
Radio broadcasting
-
95.48%
95.48%
358
465
(344)
-
Audiovisual
Canal Bilbovisión, S.L. (a) (c)
Bilbao
Canal Bilbovisión margen izquierda, S.L.U.(a) (c)
Bilbao
Local television
-
95.48%
100.00%
3
-
(1)
-
Canal Bilbovisión margen derecha, S.L.U. (a) (c)
Bilbao
Local television
-
95.48%
100.00%
3
-
(1)
-
Álava Televisión, S.L. (a) (c)
Vitoria
Radio broadcasting
-
98.95%
98.95%
467
439
(416)
-
Durango Telebista, S.L. (a) (c)
Vizcaya
Local television
-
100.00%
100.00%
163
(20)
-
Teledonosti, S.L. (a)
-
50.06%
66.04%
1,250
78
124
-
KTB-Kate Berria, S.L.U.(a) (c)
Eibar
-
75.81%
100.00%
50
135
(28)
-
Local television
(Guipúzcoa)
Jaizkibel Telebista, S.L.U. (a) (c)
-
75.81%
100.00%
3
-
-
-
Radiotelevisión Canal 8 - DM, S.L. (d)
Santander
Local television
-
85.73%
100.00%
925
(25)
(199)
-
Logroño
Radio broadcasting
-
47.04%
79.84%
1,204
(331)
(14)
-
-
73.22%
75.01%
2,040
(55)
(399)
-
La Verdad Radio y Televisión, S.L. (d)
Murcia
Radio broadcasting
Canal Ideal Televisión, S.L. (d)
Granada
Local television
-
78.89%
80.33%
615
124
(250)
-
Canal Cultural de Badajoz, S.A. (e)
Badajoz
Local television
-
75.96%
78.26%
335
165
(463)
-
El Comercio TV, Servicios Audiov., S.L.
Gijón
Local television
-
51.45%
99.99%
700
(114)
(38)
-
ABC Sevilla Multimedia, S.L.
Seville
Portfolio company
-
99.99%
100.00%
400
1,819
(1,781)
-
111
Company
Ownership interest
Direct
Indirect
Control
Paid-in
capital
Thousands of Euros
Profit (Loss)
for the
Interim
Reserves
year (1)
dividend
Location
Line of business
Seville
Local television
-
73.10%
73.10%
190
225
(228)
Sdad. Gestora de Televisión Punto TV, S.L.U. (4)
Madrid
Local television
-
100.00%
100.00%
172
4,505
(3,490)
-
Las Provincias Televisión, S.A.U.
Valencia
Local television
-
57.42%
100.00%
3,000
27
3
-
Sociedad Gestora de Televisión Onda 6, S.A.U. (4)
Madrid
Digital television
-
100.00%
100.00%
7,710
2,841
(6,486)
-
Sociedad Gestora de Televisión NET TV, S.A. (e) (4)
Madrid
Digital television
-
69.93%
70.27%
6,098
(3,094)
(9,585)
-
-
Avista Televisió de Barcelona, S.L. (e) (4)
Barcelona
Digital television
-
100.00%
100.00%
845
(386)
(2,290)
-
Avista Televisión de Andalucía, S.A. (4)
Seville
Digital television
-
100.00%
100.00%
1,800
(12)
25
-
Radio Publi, S.L. (e) (4)
Madrid
-
63.66%
63.66%
7,873
(323)
(5,279)
-
Radio El Correo, S.L.U. (a) (c) (e)
Bilbao
-
100.00%
100.00%
6
2
(2)
-
Sociedad Vascongada de Radio, S.L.U. (a) (c)
San Sebastián Local radio broadcasting
-
75.81%
100.00%
3
281
15
-
Cartera de Medios, S.A.U. (d) (e)
Badajoz
-
97.07%
100.00%
550
(195)
(102)
-
Costa Visión, S.L.U. (d)
Malaga
-
87.82%
100.00%
156
22
(74)
-
Sociedad Aragonesa de Gestión
Madrid
-
63.66%
100.00%
3
-
2
-
Radiofónica, S.L. (4)
Radio Utrera La Voz de la Campiña, S.L.
Seville
-
63.66%
100.00%
139
198
(215)
-
Oviedo
-
40.80%
79.31%
15
150
(73)
-
Radio Gaditana 2005, S.L. (d)
Cádiz
-
100.00%
100.00%
3
106
(106)
-
Proviradio, S.L.
Valencia
-
57.42%
100.00%
270
258
-
-
Radio LP, S.L.U.
Valencia
-
57.42%
100.00%
243
42
213
(175)
E-Media Punto Radio, S.A.U. (4)
Madrid
Digital radio
-
100.00%
100.00%
60
258
(176)
-
Corporación de Medios Radiofónicos
Vizcaya
Digital radio
-
91.30%
100.00%
6,011
(1,556)
(237)
-
Madrid
Holding company
-
85.00%
100.00%
30
224
(222)
-
Holding company and film
-
85.00%
100.00%
6,550
9,402
1,067
-
Digitales, S.A. (a) (c) (4)
Veralia Servicios de Producción
Audiovisual, S.L.U. (4)
Grupo Europroducciones, S.A. (4)
Madrid
production and distribution
technical services
Europroducciones TV, S.L. (4)
Madrid
TV programme production
-
80.78%
95.03%
1,051
891
(1,256)
-
IDD Publicidad, S.L. (4)
Madrid
Audiovisual representation
-
85.00%
100.00%
144
416
312
-
-
80.78%
100.00%
810
(32)
105
-
-
80.86%
100.00%
5
251
(102)
-
-
80.78%
100.00%
13
29
(42)
-
-
56.47%
69.91%
12
98
53
-
-
87.82%
100.00%
410
16
(174)
-
-
85.00%
100.00%
77
1,227
(936)
-
-
85.00%
100.00%
3
12
(3)
-
-
60.00%
80.00%
3
3
(2)
-
-
56.67%
66.67%
1,082
578
3,206
-
-
85.73%
99.8%
650
158
(317)
-
and advertising
Europroduzione, S.R.L. (4)
Italy
production
Europroducciones TV Portugal - Produçoes
Portugal
Audiovisuais, Lda. (4)
Euro TV Poland, sp.zo o. (e) (4)
production
Poland
production
Hill Valley, S.L. (4)
Madrid
production
Producciones Digitales del Sur, S.A. (d)
Malaga
company
Bocaboca Producciones, S.L. (4)
Madrid
production
Boca Interactiva, S.L. (4)
Madrid
production
Abandamedia Producciones, S.L. (4)
Valencia
production
Tripictures, S.A. (4)
Madrid
distribution
Editorial Cantabria de Radiotelevisión, S.A. (d)
112
Santander
Portfolio company
Company
Ownership interest
Direct
Indirect
Control
Paid-in
capital
Thousands of Euros
Profit (Loss)
for the
Interim
Reserves
year (1)
dividend
Location
Line of business
El Correo Digital, S.L.U. (a) (c)
Bilbao
Electronic press
-
100.00%
100.00%
400
41
163
-
Digital Vasca, S.L.U. (a) (c)
San Sebastián Electronic press
-
75.81%
100.00%
360
9
177
-
Editorial Cantabria Interactiva, S.L. (d)
Santander
Electronic press
-
85.90%
99.99%
60
153
107
(106)
La Rioja Com. Serv. en la Red, S.A.U.
Logroño
Electronic press
-
58.92%
100.00%
181
82
-
-
La Verdad Digital, S.L.U. (d)
Murcia
Electronic press
-
97.61%
100.00%
250
65
77
-
Ideal Comunicación Digital, S.L. (d)
Granada
Electronic press
-
98.20%
100.00%
420
(8)
65
-
Internet
Ediciones Digitales Hoy, S.L.U. (d)
Badajoz
Electronic press
-
97.07%
100.00%
100
172
10
-
Diario Sur Digital, S.L. (d)
Malaga
Electronic press
-
87.82%
100.00%
350
(62)
74
-
El Norte de Castilla Digital, S.L.U. (d)
Valladolid
Electronic press
-
76.49%
100.00%
60
222
104
-
El Comercio Digital Serv. Red, S.L.
Gijón
Electronic press
-
51.45%
99.99%
15
266
43
-
La Voz de Cádiz Digital, S.L. (d) (e)
Cádiz
Electronic press
-
100.00%
100.00%
3
114
(114)
-
ABC Periódico Electrónico, S.L.U.
Madrid
Electronic press
-
99.99%
100.00%
60
377
533
-
ABC Sevilla Digital, S.L.
Seville
Electronic press
-
99.99%
100.00%
3
60
(46)
-
Valenciana Editorial Interactiva, S.L.U.
Valencia
Electronic press
-
57.42%
100.00%
121
8
62
-
Sarenet, S.A. (a) (c)
Vizcaya
Internet operator
-
80.00%
80.00%
1,000
3,037
1,671
-
Taller de Editores Digital, S.L.
Madrid
News agency
-
76.04%
100.00%
92
71
(6)
-
Alianzas y Nuevos Negocios, S.L.U.
Madrid
Holding company for
-
100.00%
100.00%
750
563
(860)
-
-
100.00%
100.00%
70
795
(545)
-
vertical portals
Vocento Media Trader, S.L.U. (a) (c)
Vizcaya
Preparation of content for
electronic media
La Trastienda Digital, S.L.U. (a) (c)
Vizcaya
E-commerce
-
100.00%
100.00%
66
627
370
-
Desarrollo de Clasificados, S.L.
Madrid
Holding company for
-
100.00%
100.00%
1,000
1,597
(1,602)
-
-
69.07%
69.07%
339
(23)
(191)
-
-
51.00%
51.00%
1,269
504
1,504
-
classified advertisements
Advernet, S.L. (e)
Madrid
Search engine and
video platform
Infoempleo, S.L.
Madrid
Employment search
services and consulting
Madrid
Electronic magazine
-
50.01%
50.01%
60
338
430
-
Habitatsoft, S.L.
Barcelona
Real estate services
-
60.29%
60.29%
5
821
(306)
-
Holding de Portales de Motor, S.L.
Madrid
Holding company for
-
51.02%
51.02%
3,251
(16)
(182)
-
-
40.80%
80.00%
35
196
205
-
motor portals
Madrid
Car sales
Other businesses
Distribución de Prensa por Rutas, S.L.
Madrid
Distribution
-
60.00%
60.00%
60
700
189
-
Beralan, S.L. (a)
Guipúzcoa
Distribution
-
50.49%
50.49%
218
2,821
1,748
(1,000)
Sector MD, S.L. (a)
Vizcaya
Distribution
-
38.47%
76.18%
3
620
600
(265)
Banatu, S.L. (a)
Bilbao
Distribution
-
50.49%
99.99%
5
64
130
-
Bilbao Editorial Producciones, S.L.U. (a) (c)
Bilbao
Graphic arts
-
100.00%
100.00%
12,000
10,849
5,368
-
Sociedad Vascongada de
San Sebastián Graphic arts
-
100.00%
100.00%
3,000
5,621
71
-
Printolid, S.L.U.
Valladolid
Graphic arts
-
100.00%
100.00%
3,003
1,463
8
-
Guadalprint Impresión, S.L.U.
Malaga
Graphic arts
-
65.00%
65.00%
1,500
(73)
(114)
-
Rotodomenech, S.L.
Valencia
Graphic arts
-
57.42%
100.00%
3,039
(464)
129
-
Gijón
Graphic arts
-
100.00%
100.00%
3
1,497
(81)
-
Localprint, S.L.
Alicante
Graphic arts
-
50.00%
50.00%
10,000
-
70
-
Producciones, S.L.U. (a) (c)
Arte Final J.P. Saferi, S.A. (d) (e)
Malaga
Foreign daily press
-
87.82%
100.00%
60
(7)
(20)
-
La Verdad Editora Internacional, S.L.U. (b) (d)
Murcia
Foreign daily press
-
97.61%
100.00%
60
(3)
-
-
Valencia
Free press
-
57.42%
100.00%
156
283
(314)
-
Central Sur, S.A. (d)
Malaga
Free press
-
87.82%
100.00%
60
135
(164)
-
113
Company
Ownership interest
Direct
Indirect
Paid-in
capital
Location
Line of business
Gratuitos de Corporación de Medios, S.L. (a)
Bilbao
Free press
-
60.34%
60.34%
60
529
(543)
Servicios Redaccionales Bilbaínos, S.L.U. (a) (c)
Bilbao
Free press
-
100.00%
100.00%
550
(142)
81
-
Cotlan 900, S.L. (a)
Bilbao
Audiotex
-
60.00%
60.00%
511
(177)
113
-
La Voz de Avilés, S.L.
Avilés
Daily press
-
43.70%
84.92%
52
136
10
-
Zabalik 2.000, S.L.U. (a) (b) (c)
San Sebastián Weekly press
-
50.00%
50.00%
3
121
27
-
La Guía Comercial 2000, S.L. (a)
Bilbao
-
62.74%
40.00%
60
375
176
-
Guidebook publishing
Control
Thousands of Euros
Profit (Loss)
for the
Interim
Reserves
year (1)
dividend
-
Gourmet Plus Bilbao, S.L. (a)
Bilbao
Gastronomic festival
-
50.00%
50.00%
3
-
1
-
Fiesta Alegre, S.L.U.
Valencia
Property development
-
57.42%
100.00%
8,489
343
107
(75)
Cableedición, S.L.
Valencia
Portfolio company
-
40.19%
70.00%
3
(2)
-
-
Rineudi, S.L. (b)
Barcelona
Internet
-
51.00%
51.00%
3
(1)
-
-
and rental
Servicios Auxiliares de Prensa
Independiente, S.A. (b)
Madrid
Inactive
-
72.42%
95.24%
39
7
-
-
Gran Enciclopedia de Cantabria, S.L.U. (d)
Santander
Book sales
-
85.79%
99.87%
9
2
-
-
El Norte de Castilla Multimedia, S.L.U. (d)
Valladolid
Advertising
-
76.49%
100.00%
1,987
(312)
(73)
-
CM Norte, S.L.U. (a) (c)
Bilbao
Advertising
-
100.00%
100.00%
88
475
21
-
DV Multimedia Comunicación y
San Sebastián Advertising
-
75.81%
100.00%
100
284
20
-
Santander
Advertising
-
85.91%
100.00%
1
-
-
-
Santander
Advertising
-
85.91%
100.00%
60
-
-
-
Logroño
Advertising
-
58.92%
100.00%
61
120
10
-
Comercial Media de Levante, S.L.U. (d)
Murcia
Advertising
-
97.61%
100.00%
125
173
3
-
Comercializadora de Medios Andalucía, S.L. (d)
Granada
Advertising
-
98.20%
100.00%
300
115
31
-
Corp. Medios Extremadura Multimedia, S.L.(d)
Badajoz
Advertising
-
97.07%
100.00%
150
9
2
-
Structure
Servicios, S.L.U. (a) (c)
Comercializadora de Medios de
Cantabria, S.C. (b) (d)
Comercializadora Multimedia de
Cantabria, S.L. (d)
Rioja Medios, Compra de Medios
de Publicidad, S.A.U.
Corporación de Medios del Sur, S.L. (d)
Malaga
Advertising
-
87.82%
100.00%
5
377
(12)
-
Comercializadora de Medios de Castilla
Valladolid
Advertising
-
76.49%
100.00%
60
51
(39)
-
y León, S.L.U.(d)
Comercializadora de Medios de Asturias, S.L.
Gijón
Advertising
-
51.45%
99.99%
30
4
(4)
-
Comercial Multimedia Vocento, S.A.U. (d)
Madrid
Advertising
-
100.00%
100.00%
600
83
(162)
-
Globalia de Marketing y Medios, S.L.U.(d)
Madrid
Advertising
-
100.00%
100.00%
60
-
-
-
Comercializadora Medios ABC Andalucía, S.L.U.
Seville
Advertising
-
99.99%
100.00%
3
7
(6)
-
Comercializadora de Medios Las Provincias
Valencia
Advertising
-
57.42%
100.00%
3
7
7
-
Veralia, Corp. Productoras Cine y TV, S.L. (a) (c) (4)
Vizcaya
Holding company
-
85.00%
85.00%
41,176
23,860
(15,226)
-
Distribuciones COMECOSA, S.L.U. (a) (c)
Vizcaya
Holding company
-
100.00%
100.00%
451
7,003
1,953
(800)
Radio Tele Basconia, S.L.U. (a) (c)
Bilbao
Radio broadcasting
-
100.00%
100.00%
301
822
42
-
Corporación de Medios Regionales, S.L.U. (a) (c)
Bilbao
Holding company
100.00%
-
100.00%
27,770
67,040
44,048
(38,000)
COMERESA PRENSA, S.L.U. (d)
Madrid
Holding company
-
100.00%
100.00%
79,784
182,767
21,207
(15,000)
COMERESA PAIS VASCO, S.L.U. (a) (c)
Vizcaya
Holding company
-
100.00%
100.00%
9,686
36,370
32,852
(29,000)
Vizcaya
Holding company
100.00%
-
100.00%
60
32,148
26,277
-
Vizcaya
Holding company
100.00%
-
100.00%
555
1,679
(1,020)
-
Vizcaya
Holding company
100.00%
-
100.00%
40,740
78,096
27,005
(23,779)
Multimedia, S.L.U.
de Prensa, S.A. U. (a) (c)
Tecnologías, S.L.U. (a) (c)
Audiovisuales, S.L.U. (a) (c) (4)
114
Company
Corporación de Medios de
Location
Line of business
Vizcaya
Holding company
Ownership interest
Direct
Indirect
100.00%
-
Control
Paid-in
capital
Thousands of Euros
Profit (Loss)
for the
Interim
Reserves
year (1)
dividend
100.00%
10,000
44,643
699
-
Comunicación, S.L.U. (a) (c)
Comeco Impresión, S.L.U. (a) (c)
Vizcaya
Holding company
-
100.00%
100.00%
9,249
39,863
5,112
-
Viápolis, S.L.U. (a) (c)
Vizcaya
Internet advertising
-
100.00%
100.00%
66
(16)
13
-
Madrid
Holding company
100.00%
-
100.00%
1,500
65,434
(17,411)
-
Digitales, S.L.U. (4)
Pantalla Digital, S.L. (e) (4)
Madrid
Portfolio company
-
100.00%
100.00%
1,000
125
(6,941)
-
Fundación Colección ABC
Madrid
Foundation
-
99.99%
100.00%
30
-
(14)
-
% of Ownership
Direct
Indirect
Interim
dividend
Company
Location
Line of business
ASSOCIATES:
Printed media
Milenio ABC, S.A. de C.V. (2)
Mexico
Daily press
-
49.00%
10,251
(10,178)
(7,744)
-
Audiovisual
Madrid
-
13.00%
123,321
129,658
353,058
-
Madrid
Madrid
Indirect management of
the public television service
-
42.50%
20.40%
91
4
(86)
(776)
(3)
(318)
-
Madrid
Madrid
Madrid
Barcelona
Portugal
Italy
-
25.51%
25.51%
25.51%
25.51%
25.51%
25.51%
65
60
60
61
50
10
89
6,947
356
28
146
485
1,013
1,630
200
100
(20)
(552)
(1,000)
(99)
-
Salamanca
Asturias
Cádiz
Valencia
Madrid
Distribution
Distribution
Distribution
Distribution
Services, events and public relations
-
26.35%
24.70%
22.50%
22.75%
35.72%
37
14
100
144
4
10
747
152
1,464
509
652
736
3,027
2,259
13
(265)
(2,145)
(500)
-
Plato Chroma, S.A. (4)
Grupo Productores Independientes,
S.L. (3) (4)
Grupo Videomedia, S.A. (4)
Videomedia, S.A. (4)
Imagen y Servicios, S.A. (4)
Alia Ediciones, S.L. (4)
Videomedia Portugal, LTDA. (4)
Videomedia Italia, S.R.L. (4)
Other businesses
Cirpress, S.L.
Distrimedios, S.A. (4)
Val Disme, S.L. (4)
Capital
Thousands of Euros
Profit (Loss)
for the
Reserves
year (1)
(1) Estimated and/or pending approval by the shareholders at the respective Annual General Meetings and before the distribution of dividends.
(2) This information is presented in accordance with local accounting principles and in thousands of Mexican pesos.
(3) Data at 31 December 2006.
(4) Companies subject to mandatory audit of their financial statements which have been audited by KPMG Auditores. Remaining companies subject to
mandatory audit of their financial statements which have been audited by Deloitte.
(a) Subsidiaries subject to provincial income tax legislation.
(b) Inactive at the present date.
(c) Companies comprising the Basque Country consolidated Tax Group.
(d) Companies comprising the consolidated Tax Group whose parent is Comeresa Prensa, S.L.U.
(e) Company in a situation of mandatory dissolution pursuant to the Consolidated Spanish Companies Law or the Spanish Limited Liability Companies
Law where the necessary steps have been taken or will be taken shortly (merger, capital increase, etc.) to restore the net worth equilibrium.
115
Consolidated Management Report
VOCENTO, S.A.
AND DEPENDENT COMPANIES
2007 CONSOLIDATED MANAGEMENT REPORT
116
1. BUSINESS EVOLUTION
VOCENTO is a companies group whose dominant partner is VOCENTO, S.A., a company engaged in different areas of communication media business
activity.
In evaluating the company’s risks and performance, VOCENTO management has structured the management information based on the different lines
of business activity defined: Printed Press, Audiovisual, Internet, and Other Businesses. This same structure, which is useful and reliable for group
management, is the structure used for market reporting. This grouping of information presents all the press, digital press, local televisions, local and
national radio stations, etc. in which VOCENTO is present that are assigned to each line of activity. The comments and comparisons included in this
Management Report are made based on the foregoing segments.
Entering into greater detail with respect to each of the business areas in which VOCENTO operates, the following aspects are highlighted for 2007.
PRINTED PRESS
With respect to printed press, VOCENTO has been consolidated as the number one communication group in Spain in the number of copies sold, with
732,708 daily copies sold, and a market share of 23.6% for all general information daily press. In addition, following the purchase on August 1, 2007
of 100.0% of the share capital of “Factoría de Información, S.A.”, publisher of the free national daily publication Qué!, VOCENTO has added another
956,585 copies to its scope of coverage.
Diffusion (copies)
ABC
El Correo
El Diario Vasco
El Diario Montañés
La Verdad
Ideal
Hoy
Sur
La Rioja
El Norte De Castilla
El Comercio
Las Provincias (1)
La Voz de Cádiz
Total Regional Press
Total General Information Paid-for Press
QUÉ! (2)
2007
2006
2005
235,594
118,113
84,226
39,201
38,715
32,560
22,805
31,783
16,740
36,323
26,803
40,330
9,515
497,114
732,708
956,585
240,226
119,600
86,053
39,701
39,637
33,214
23,935
34,007
17,030
36,866
27,450
42,048
11,208
510,749
750,975
963,435
278,166
124,843
89,259
40,060
40,125
34,015
25,474
36,501
17,003
39,008
28,055
43,872
14,030
532,245
810,411
964,215
Source: Diffusion Justification Office (DJO) and Distributed Copies of Free Press (DCFP). 2007 data pending annual certification.
(1) Acquisition of a majority holding in Las Provincias (57.42%) in February 2006.
(2) Acquisition of a majority holding in free publication Qué! in August 2007.
With respect to readers, VOCENTO’s figures also show it is the leader in the general information press. VOCENTO’s joint printed press readers, including
regional, national and free press reached 5.1 million daily readers, representing a market share of 37.4% of readers overall for Spanish general
information press. That number of readers stands at 13,221,000, according to the cumulative General Media Survey (GMS) between February and
November, 2007.
117
(Thousands of readers)
ABC
El Correo
El Diario Vasco
El Diario Montañés
La Verdad
Ideal
Hoy
Sur
La Rioja
El Norte de Castilla
El Comercio
Las Provincias (1)
La Voz de Cádiz
Total Regional Press
Total General Information Paid-for Press
QUÉ! (2)
2007
2006
2005
662
739
840
520
296
190
230
189
157
186
107
227
152
180
32
523
312
186
264
206
170
204
95
222
168
192
34
592
324
201
268
171
151
206
85
252
193
185
37
2,466
3,128
1,955
2,576
3,315
1,876
2,665
3,505
1,923
Source: GMS Data February – November 2007. Printed Press Ranking.
(1) Acquisition of majority holding in Las Provincias (57.42%) in February 2006.
(2) Acquisition of majority holding in the free daily publication Qué! In August 2007.
Regional Press
In 2007, VOCENTO’s line of activity in the Regional Press area was focused on maintaining its current leading positions in regional markets where it is
present as a company of reference in regional media. This positioning strategy enables it to maintain high profitability levels, closing yet another year
with extremely positive results (+6.4% Income and average EBITDA margin of 26.9%).
Despite the general information press diffusion being negatively affected by competition from new information media, VOCENTO's regional press,
leaders in their respective markets, have fought that declining trend and succeeded in maintaining practically the same figure for copies sold (+1.4%).
On the other hand, advertising income has increased (+9.3%), through strengthening subscriptions, greater local focus, through a local editions policy
that has allowed the company to achieve greater proximity to readers, and a capacity to exploit all the potential readers within its sphere of influence
through a multimedia strategy.
ABC
ABC, the third national newspaper in Spain in terms of the number of copies sold, and a publication of reference in the 20th century, has continued its
intensive social, cultural and institutional activity during this past year.
ABC now has 2 local editions more than in 2006, raising the total number of editions to11: Madrid, Sevilla, Córdoba, Toledo, Castilla-León, Castilla la
Mancha, Cataluña, Comunidad Valenciana, Galicia, Canarias and the rest of Spain. In 2007, the Sevilla edition of ABC is again highlighted, and is the
newspaper with the highest sales in its area of coverage, after 78 years, and with its own independent signs of identity and wide informative coverage
in Andalucía and particularly, in Sevilla.
2007 was a complicated year for Spanish printed press, as a consequence of growing competition from other news media (Internet, free press etc.), the
emerging of new operators in television and market saturation in promotions, with a reduced effect of the latter compared to figures for previous years.
In this setting, ABC ended 2007 with an average diffusion of more than 235,000 copies (-1.9% with respect to 2006), complying with the company’s
objective of reversing the negative trend detected in 2006, during which diffusion was reduced by -13.6%, and establishing a path of constant growth.
December closed with 236,429 copies sold, the sixth month of continuous increase in diffusion for 2007. We should mention the positive trend
observed during the last quarter of 2007, in which diffusion increased by +6.8% reaching an average of 248,544 copies. These figures are due to the
enormous effort with respect to publication, new local editions and important modifications in our offering, such as the distribution of the magazine
Mujer Hoy Corazón.
118
Free Press- Qué!
In August 2007, VOCENTO purchased 100.0% of the share capital of “Factoría de Información, S.A.” responsible for the free Spanish daily publication
Qué!. Free press is a complementary business for VOCENTO and permits access to new geographic areas where VOCENTO was not formerly present
(i.e. Catalonia, Galicia, Balearic Islands), and new readers, thereby allowing the company to increase its audience and continue developing advertising
activities in the VOCENTO media.
Since the purchase of this free publication, 2 new editions have been launched in Cantabria and San Sebastián, making a total of seventeen editions
that are read in more than nineteen cities, 956,585 copies sold (source: General Daily Press 2007) and 1,955 thousand readers (source: mobile GMS
year February - November 2007).
The purchase of Qué has enabled VOCENTO to continue as the undisputed leader with a total 5,083 thousand readers.
Magazines and Supplements
During yet another year, VOCENTO has consolidated its leading position in the general information supplements (XLSemanal, Mujer Hoy, TVMás and
Mujer Hoy Corazón) and in specialised magazines (Mi Cartera de Inversión, Motor 16 and corporate publications) which, this year, have obtained
extremely positive figures.
XL Semanal continues to lead this segment with a total of 3.4 million readers. In June 2007, VOCENTO replaced its television supplement Semanal TV
with a new supplement, TVMás, covering not only TV but also adding extra coverage in the new technologies field, such as Internet, telephones or
videogames. The supplement has 1.1 million readers and a market share of 53%, 4 times more than its most direct competitor.
Mujer Hoy has been consolidated as the leading women’s supplement with respect to number of readers and occupies second place in the audience
ranking, with 2.2 million readers.
Mujer Hoy Corazón completes the supplements area, dedicated to the gossip magazines sector, and strengthening the ABC newspaper offering on
Saturdays.
Audience (thousands of readers)
2007
2006
2005
XL Semanal
Mujer Hoy
TV Más
3,379
2,197
1,109
3,273
2,039
1,190
4,336
2,204
1,596
Source: GMS Data February – November 2007.
AUDIOVISUAL
VOCENTO’s commitment to the audiovisual sector has continued in 2007. Its strategy enables it to operate in the audiovisual market, thanks to the fact
that it has a national TDT license and diverse local and regional TV licences, a general-news radio station (Punto Radio), digital national radio licences
and stakes in contents producers and in a film distributor.
VOCENTO estimates that this strategy of integrating different audiovisual platforms at national, regional and local level is a key factor in increasing its
growth rates, by means of the integrated management of contents and production of synergies through the different multimedia platforms in which it
operates (press, internet, television and radio).
119
Television
During 2007, there has been an increase in competition and greater fragmentation of audiences, as a result of the increase in the offering. At present,
Spain has six private channels and one public channel, all of which are national in scope, operating 24 open TV channels (6 of which are through
analogical and TDT “simulcast” broadcasts and 18 solely through TDT; in addition, (i) public regional television channels (FORTA), an incipient private,
regional television market and (ii) a wide offer of local channels that have yet to be developed.
The open television offering is completed with cable and satellite TV platforms.
National Market
• NET TV
Within the scope of national TDT, and without the available spectrum having been distributed, a strong barrier has been set up to prevent the
entry of new competitors, since this would involve re-planning the spectrum and organising a new bidding process.
Through its indirect holding of 69.93% in the share capital of Sociedad Gestora de Televisión Net TV S.A. (“SG NET TV”), VOCENTO is one of six
private operators in possession of a national TDT licences and currently manages two TDT channels (Net TV and Flymusic).
• Telecinco
The channel, in which VOCENTO has a stake of 13%, closed 2007 with a net profit of 353.1 thousand Euros, +12.3%, as the direct result of
maintaining its leading position in the Telecinco audience, (20.3% share of the total 24 h audience for 2007), the excellent sales management of
its advertising space and the effective cost-savings policy. Telecinco obtained a total net income of 1,081.6 million Euros, +8.4% above the
997.55 million Euros obtained in 2006. The EBIT margin reached 485.25 million Euros, with an increase of +10.6% over 2006.
Regional Market
The situation in this market is based on of the preponderance of public television channels (FORTA) with a turnover of over 350 million Euros in advertising.
As has occurred in the national market, there is an opportunity for the private sector to enter this market, thanks to the TDT concessions, particularly
in a sector where advertising limitations on public television channels will exist in the short-medium timeframe.
VOCENTO is in a privileged position since it holds licences in the 4 most important markets from the advertising standpoint (with a concentration of
more than 80% of total investments): Madrid (through Onda 6 TV), Valencia Region (through Las Provincias TV), Andalucía (not yet on the air) and
Catalonia through Urbe TV (in this case, instead of a regional operating licence, through a local TDT licence in Barcelona).
Local Market
The current situation is that of a move from analogical TV to TDT TV, after obtaining the necessary government concession.
VOCENTO‘s objective is to ensure its presence in all local markets through Regional Multimedia is complemented by a local TV channel. At present,
VOCENTO has digital concessions in La Rioja, Murcia, the Basque Country and the three most important local digital areas in Asturias (Oviedo, Gijón
and Avilés) with the proposal for Cantabria pending decision, and with proposals also to be submitted for the region of Castilla and León.
Regional Multimedia in Valencia and Andalucía will cover its local TV needs through local disconnections made in the regional televisions referred to in
the preceding section.
In this area, VOCENTO continues its commitment and rapid response in terms of its television concept by investing in quality contents that will attract
viewers through a new mage in respect of brand and continuity.
120
Radio
In the audiovisual sector too, during its third year of operation, Punto Radio has achieved its objective with great professionalism and impartiality in the
information offered by the national radio station, and its commitment to quality programmes that have enabled it to be positioned as one of the most
important general-news radio stations in Spain.
In 2007, Punto Radio has consolidated a grid that will form the basis of its operations during future years, with which to compete “on an equal
footing”, with excellent professionals who have joined the station in 2007, such as María Teresa Campos, and a model based on local radio through
regional multimedia. Punto Radio is supported by 507,000 listeners, according to the General Media Survey (3rd wave of 2007). 2007 was a year in
which the programme “Protagonistas” celebrated a historic milestone. The celebration of the 10,000th edition of this pioneer programme in the
Spanish radio sector, directed by Luis del Olmo, gave rise to a tour without precedent through the whole of Spain.
The Spanish radio market, which has a limited number of frequencies and is also controlled by only a few operators, has produced restrictions in the
growth of Punto Radio during its first few years of existence. However, the recent publication of the “Technical Audio Radio-diffusion Plan” will
increase the number of frequencies for providing a radio-diffusion service through the modulating of frequencies (FM) to 867, an increase of 83%. In
2007, the plan has allowed Punto Radio to grow by means of seven new frequencies in La Rioja and the Balearic Islands, the latter, through an associate
company.
In 2007, great progress has been made by adapting audio to new supports and formats that can now be enjoyed by the public in the new website
(www.puntoradio.com).
In the digital radio sector, VOCENTO has two digital radio licences in E-Media Punto Radio, S.A.U. and Corporación de Medios Radiofónicos Digitales,
S.A. However, the limited development of the receivers market has led to slow progress in the development of this business.
Audiovisual Production and Distribution
The emergence of new TDT national, regional and local TV channels, and new formats for the distribution of contents through ADSL, mobile phones
and wireless devices will allow the TV offer to multiply, with a new range of channels requiring new contents. This will mean a change in the relation
model and possible in the ownership of the formats produced, in which ownership will pass from the channels to the producers.
Faced with this evolution, VOCENTO has decided to promote the audiovisual production sector (production of entertainment and fiction programmes
and film distribution). That activity has been focused on Veralia, an audiovisual production company holding that includes the production companies
BocaBoca Producciones, Europroducciones, Videomedia and the distributor TriPictures.
Given that VOCENTO is present in different communication media (printed press, TV, radio and the Internet), it has additional advantages such as
having its own channels to which it can sell its own productions and try out new formats. Furthermore, since it has newspapers, the contents produced
can be used to makes sales of DVDs and promote Veralia’ contents and products in all the VOCENTO media.
121
INTERNET
The Internet market in Spain is still at a developing stage, both with regard to market penetration in society, connection habits (which is very much
dependent on one’s profession), and the use of broadband connectivity and the use of that support by the advertising market. For that reason, given
that the Spanish market is reproducing the growth of more advanced EU countries, the expectations of that market for future years are greater
penetration of the Internet, from 36% in 2007 to the 50% that is expected in 2008, (source: Screendigest, July 2006) which will lead to an
intensification in its use in homes, together with an important increase in advertising and transactions revenues (classified, mediation and e-commerce,
mainly).
VOCENTO is ranked 7th place in the Netview ranking, climbing two places since the nine-month results of 2007 and four places since the beginning of
the year. In 2007, VOCENTO consolidated its position as one of the foremost Internet communication groups in Spain, with a total of 1.53 million single
users per month visiting all the VOCENTO websites in December, and an increase of 37.6% over the same month of the previous year (source: Nielsen
Site Census). This increase is due to both the Digital Editions (abc.es + 39.6% and average of Digital Editions of Regional Press +26.1%) and Vertical
Portals (+53.0%) as a result of the incorporation this year, of portals such as hoyinversion, hoycinema, dalealplay and hoymotor, and the Classified Ads
area (+49.4%).
In 2007, VOCENTO took on different projects, in keeping with new trends in the sector (web 2.0.) that have permitted it to continue being a local name
of reference and carry on exploiting a profitable business model, as is shown by the 2007 EBITDA figures for the internet area, which stand at 6.8
million Euros, with an increase of +31.3%. The digital editions are another area in which a great redesigning and modernising effort has been made,
enabling the company to reach 10.2 million single users per month and more than 173 million pages visited / month (+13.5% compared to December
2006. Source: Nielsen Site Census).
Its Internet offering is completed by several vertical portals, in view of the demand for new contents (e.g., www.hoycinema.com,
www.hoyinversion.com, www.hoymotor.com) and it continues to make a careful analysis of all its Internet business based on a strategic, profitability
and market-penetration standpoint.
OTHER BUSINESS
As well as the foregoing Printed Press, Audiovisual and Internet activities, VOCENTO has the following businesses: Printing, distribution, other holdings
in the regional multimedia sector, free press, Audiotex and events.
Among its main activities are Comeco Impresión and Distribuciones Comecosa, a business that is linked to the Printed Press activity. At the end of 2006,
a plan was set up for the segregation of printing centres in different regional publications, in conjunction with other publishing groups, or alone in
order to free up the publishing division from industrial operations and at the same time, carry out technological upgrading in all its equipment, to
improve printing quality, in addition to the options of inserts and publicity.
In 2007, the segregation plan was carried out through Localprint S.L,. This company –in which Comeco Impresión and Editorial Prensa Ibérica hold
50%- has two rotary printing presses that offer service to the east coast, from Alicante to Almería. In addition, during 2007, Comeco Impresión made
investments in a new printing plant in Valladolid, Printolid –with a share of 100%-, for the purpose of dealing with the Castilla y León market that will
start operations in 2008.
122
SOLID ECONOMIC RESULTS IN A HIGHLY COMPETITIVE ENVIRONMENT (2007 RESULTS)
Revenues of 918,010 thousand Euros (+5.2%) due to the growth in advertising of +7.0%, and in particular due to Regional Press (+9.3%),
Supplements and Magazines (+7.2%), Radio (+33.3%) and the Internet (+65.8%) and the incorporation into the perimeter of the acquisitions made.
Maintenance of sales of copies (-0.5%) based on the positive trend of Regional Press and in particular, ABC.
EBITDA 90,054 thousand Euros, (ex-non recurring +4.4%): improved contribution of Audiovisual business and growing contribution of the Internet.
During 2007 non-operating costs were incurred that had a negative effect on the EBITDA: i) acceleration of the ABC Optimisation Plan (-12,277
thousand Euros) and ii) “one-off” Structure costs (-6,723 thousand Euros). Also, the incorporation of Qué! into the perimeter (-3,769 thousand Euros).
EBITDA
Printed press
Regional Press
National Press
Free Press
Supplements and Magazines
Audiovisual
Internet
Other Business
Structure & Others
Total EBITDA
TOTAL ex-non recurring EBITDA (*)
2007
2006
111,313
111,270
(9,855)
(3,769)
13,667
(12,013)
6,808
13,518
(29,572)
90,054
109,055
133,240
110,584
10,674
n.a.
11,982
(26,589)
5,187
12,285
(19,628)
104,495
104,495
% Var.
(16.5%)
0.6%
(192.3%)
n.a.
14.1%
54.8%
31.3%
10.0%
(50.7%)
(13.8%)
4.4%
(*) Non-operating costs in the Structure Area and ABC Optimisation Plan
• EBIT 40,158 thousand Euros, -36.1%: in addition to the impact of non-recurring costs (-19,000 thousand Euros) and the impact of the
consolidation of Qué! (-3,943 thousand Euros), producing an increase in depreciation in the audiovisual area of 8,263 thousand Euros.
• Net profit 82,168 thousand Euros, +5.9%, despite the increase in the negative financial margin –largely due to the result of the dividends policy
announced at the public offering (75% pay-out), purchase of Qué!-, corrections made to the goodwill funds, offset by the net gains produced
from the sale of CIMECO (Argentina).
• Complementary gross dividend of 23,839 thousand Euros which the Board of Management decided to submit for the approval of the Ordinary
General Shareholders Assembly during its meeting of February 28, 2008. Maintenance of the company’s commitment to its dividends policy
announcing the 75% pay out.
• Purchase by The Walt Disney Company Iberia, S.L. of a 20% in NET TV and signing of a strategic agreement for the development of competitive
TV channels as a partner of reference and contents-provider (see section 7 of this report).
By areas of activity:
• Printed Press: positive trend of Regional Press (+6.4% in revenues), accelerated execution of the ABC Optimisation Plan and continuous
improvement in its diffusion (+6.8% 4Q07) with 7 months of consecutive increases (Jan08). Integration of Qué!, the second most important free
national newspaper, purchased in August, and launch of two new editions (Cantabria and Gipuzkoa). Following the incorporation of Qué!,
VOCENTO is converted into the leader in the printed press sector with more than 5 million readers (GMS third wave 2007)
• Audiovisual: improvement in all area segments, Radio with an increase in advertising (+33.3%), cost control in Local TV and Radio and
incorporation of Tripictures.
• Positioning in the Internet (Revenues +32.6%; EBITDA +31.3%) as a company of reference in local markets (15.4 million u. per month, +37.6%).
VOCENTO occupies 7th place in the Netview ranking.
123
DIVIDENDS
VOCENTO has fulfilled the commitment made on its listing in the stock exchange, of maintaining a general dividends policy of approximately 75% payout of the net profit to shareholders, subject to different factors, including, without limitation, VOCENTO's income, its financial situation, available
cash, cash requirements (including capital costs and investment plans), prospects and any other factor that could be considered relevant in the future.
During 2007, VOCENTO has complied with its announced dividends policy and the Board of Management will recommend to the Ordinary General
Shareholders Assembly payment of a total dividend of 61,625 thousand Euros, broken down as follows: a complementary dividend of 23,839 thousand
Euros and a total gross interim dividend of 37,786 thousand Euros which was approved on July 25 2007 and entered into effect on October 10, 2007.
FINANCIAL SITUATION WITH BANKS
As at December 31, 2007 this amounts to -109,484 thousand Euros, contrasting with a net positive financial situation of 60,675 thousand Euros at the
close of 2006.
Thousand Euros
Financial debt with banks (short term)
Financial debt with banks (long term)
Gross financial debt
Cash & other equivalent resources
Net cash position/(net debt) with Banks
International Accounting Standards
2007
2006
Abs Var
25,117
127,413
152,529
43,045
(109,484)
10,749
43,507
54,257
114,931
60,675
14,367
83,906
98,273
(71,886)
(170,159)
The variation corresponds to:
(i) The generation of business cash (see section 2.3. Cash Flow Situation).
(ii) Collection of Telecinco dividend amounting to 41,087 thousand Euros on May 3, 2007.
(iii) Entry of cash from the sale of CIMECO (26,740 thousand Euros).
(iv) Payment of interim dividends and complementary dividends corresponding to years 2006 and 2007 for a total amount of 65,960 thousand
Euros in 2007.
(v) Acquisition of the free daily newspaper Qué! for 132,000 thousand Euros which was financed with cash (116,000 thousand Euros) and credit
lines (16,000 thousand Euros).
(vi) Increase in external debt in the Contents area (38,062 thousand Euros) with the objective of increasing financial autonomy with respect to the
group.
(vii) Finance of the programme for segregating printing plants, amounting to 25,229 thousand Euros.
The balance sheet includes debts for 38,021 thousand Euros under the heading “other liabilities” (as compared to 46,167 thousand Euros in 2006)
accruing financial interest corresponding largely to pension schemes not included in the foregoing net financial position calculation with banks.
124
2. OWN EQUITY
Currently VOCENTO is the direct holder of 2,224,675 own shares in the company, equivalent to 1.78% of the share capital. The average cost price of
own shares is 14.47 Euros per share, representing a total cost of 32,189 thousand Euros.
3. SHARES EVOLUTION
VOCENTO’s shares closed 2007 at a listed price of 13.6 Euros per share, corresponding to a market capitalisation of 1,699 million Euros.
VOCENTO’s shares are listed in the stock exchanges of Madrid, Barcelona, Bilbao and Valencia. Below is the relative evolution of the VOCENTO shares
compared with the IBEX 35 during 2007:
%
115
110
105
100
95
Vocento
90
IBEX 35
02/12/2007
02/11/2007
02/10/2007
02/09/2007
02/08/2007
02/07/2007
02/06/2007
02/05/2007
02/04/2007
02/03/2007
02/02/2007
02/01/2007
85
4. MANAGEMENT PLAN
The General Shareholders Assembly of September 5, 2006 decided to approve an incentives plan referenced to the value of the VOCENTO, S.A. shares,
for executive officers, Senior Management and VOCENTO directors. The plan consists of establishing a variable lump-sum incentive in cash, linked to
the evolution of the price of the listed shares during a term of 3 years since its listing in the Stock Exchange, and subject to achieving a specific group
EBITDA increase, corresponding to each management category, of a cash amount equivalent to a number of reference shares. The amount of the
variable cash amount will be equal to the amount obtained from multiplying the number of reference shares corresponding to each director by the
positive difference between the initial listed price and the share price three years afterwards, corrected by a factor depending on the extent to which
the EBITDA increase objective is achieved. Although at the time of establishing the plan, the maximum number of reference shares was 1,230,000 as a
result of the cancellations due to staff covered by the plan leaving the company, the number of reference shares amounted to 1,040,000 as at
December 31, 2007.
5. RESEARCH AND DEVELOPMENT ACTIVITIES
The Group has not made any significant investments in Research and Development activities during the course of 2007.
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6. USE OF FINANCIAL INSTRUMENTS
The Group uses derivative-based financial instruments to cover risks to which its activities, operations and future cash flows are exposed, fundamentally
risks arising from variations in exchange rates and interest rates. The details of the balances showing the valuation of derivatives in the consolidated
balance sheet as at December 31 2007 and 2006 are as follows:
Thousands of Euros
2007
Assets
INTEREST RATE COVERAGE
Cash flows coverage:
Interest rate hedge transactions
Ascending collar
EXCHANGE RATE COVERAGE
Reasonable value coverage:
Swaps (USD)
2006
Liabilities
Assets
Liabilities
227
2
(4)
-
-
-
229
(849)
(853)
-
(756)
(756)
The interest rate coverage instruments were contracted in 2007. The effect of the variations of this coverage during the year was recorded by transfer
to the “Reserves – Reserves for revaluation of non-materialised assets and liabilities” and “Patrimony – Minority shareholders” headings for net
amounts of 186 and 33 thousand Euros respectively.
The sensitivity of the interest rate coverage operations market value to variations in interest rates is shown in the following table:
Thousands of Euros
Interest rate variation
Variation in the coverage value
+ 0.25%
- 0.25%
238
(240)
On the other hand, VOCENTO uses derivatives as interest rate coverage for mitigating the potential negative effect of variations in exchange rates on
the reasonable value of debts corresponding to the provision of royalties for the distribution of film productions in US dollars. During 2007 and 2006,
the effect of exchange rate coverage operations on the consolidated profit and loss account was charged to the heading “Financial expenses” of the
consolidated profit and loss account for the amounts of 92 and 146 thousand Euros, respectively.
As at December 31, 2007 and 2006 the total nominal value of the exchange rate coverage was as follows:
Thousands
Currency
Euros
US dollars
2007
5,535
6,860
2006
10,572
13,046
This exchange rate hedge transaction matures in 2008.
As at December 31 2007 and 2006 VOCENTO maintained no derivatives not complying with the conditions for being included as book coverage and
neither has it maintained any during those years.
126
7. EVENTS TAKING PLACE AFTER THE CLOSE OF YEAR
From 31 December 2007 to the date of preparing these annual accounts, no significant fact has taken place that could affect the true image of the
consolidated annual accounts for the year 2007.
On January 28 2008, the Board of Management of VOCENTO, S.A. unanimously agreed to accept the resignation of the Chief Executive Officer Mr.
Belarmino García Fernández. The Board of Management also unanimously agreed to designate Mr. José Manuel Vargas Gómez as the new Chief
Executive Officer.
Likewise, on February 12 2008, The Walt Disney Company Iberia, S.L. (TWDCI) assumed its commitment to acquire 20% of the shares of Sociedad
Gestora de Televisión NET TV, S.A., which is pending authorisation by the competent administrative authorities. This company owns a national
terrestrial digital television licence worth approximately 27 million Euros. Apart from TWDCI, the shareholders of NET TV are Pantalla Digital, S.L.,
(controlled 100% by VOCENTO), with a share of 55% and Homo Videns, S.A. (INTERECONOMÍA), which holds 25%. Through this, TWDCI offers NET
TV its experience in developing competitive TV channels and contributing to a wider distribution of this company’s existing contents.
8. FORECASTED EVOLUTION
The bases of VOCENTO are founded on the above financial results and the diffusion and audience figures that have produced these results, and are a
constant reminder to us of the level of responsibility and commitment our group has assumed towards our readers and the announcers that we serve.
This enables us to face the year with ambitious objectives, strengthening our position in the national media area, including national and free press and
Internet, maintaining our leadership in general information press based on quality and increased profits that will position VOCENTO as an even more
consolidated leader in the general information press sector and as a stronger consolidated multimedia group.
During this new phase, VOCENTO aspires to be consolidated as one of the leading multimedia groups in the communication media sector, combining
its national and regional presence through integrated management that will enable it to build synergies in all its business areas.
9. ADDITIONAL INFORMATION FOR THE PURPOSE OF ARTICLE 116 A OF THE SECURITIES MARKET ACT
a. The capital structure, including securities not negotiated in a regulated community market, indicating as applicable, the different
classes of shares and for each share class, the rights and obligations conferred and the share capital percentage represented;
As at December 31, 2007, the share capital of the Dominant Partner amounted to 24,944 thousand Euros, and is formalised by 124,970,306 shares
each with a face value of 0.2 Euros, fully subscribed and paid up. The company shares are listed on the Spanish continuous market and in the Stock
Exchanges of Madrid, Bilbao, Barcelona and Valencia.
b. Any existing restrictions in the transferability of the shares;
There are no restrictions on the transferability of the shares.
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c. Significant holdings in the capital, both direct and indirect;
Since the VOCENTO shares are represented by account entries, the holdings of the shareholders in the share capital are not precisely known. However,
based on the notifications made to the National Securities Market Commission (NSMC) significant holders of over 3% are the following:
Shareholder
MEZOUNA, S.L.
Valjarafe, S.L.
Onchena, S.L.
Casgo, S.A.
Bestinver Gestión,S.A., S.G.I.I.C
Number of Shares
Share %
12,974,368
11,097,249
10,281,476
9,975,388
8,017,929
6,836,456
5,532,008
4,726,367
3,772,751
10.38%
8.88%
8.23%
7.98%
6.42%
5.47%
4.43%
3.78%
3.02%
• Víctor Urrutia Vallejo holds 414,487 direct shares and 10,406,195 indirect shares through ROLAR DE INVERSIONES, S.A. (124,719) and ASUA DE
INVERSIONES, S.L. (10,281,476). Total: 8.659%.
• Enrique de Ybarra Ybarra holds 500 direct shares and 8,123,161 indirect shares through ENERGAY DE INVERSIONES, S.L. (8,017,929) and GOGOL DE
INVERSIONES, S.L. (105,232).Total: 6.500%.
• María del Carmen Careaga Salazar holds 51 direct shares and 6,836,456 indirect shares through ONCHENA, S.L. Total: 5.470%.
• Guillermo Luca de Tena Brunet holds 157,014 direct shares and 11,097,249 indirect shares through VALJARAFE, S.L. Total: 9.006%.
d. Restrictions with respect to voting rights;
There are no statutory restrictions on voting rights, above and beyond what is provided in article 44.1 of the Public Limited Companies Act, which
establishes that “shareholders in default of payment of passive dividends shall not be entitled to vote”
e. Para-social agreements;
Between September 21 and 29 2006, an agreement was subscribed on Optimisation of the Value of VOCENTO, S.A. Shares which was later entered
into record in a deed executed by the Notary of Madrid, Mr. Carlos Ruiz-Rivas Hernando on November 3, 2006. The agreement sets forth that no
holdings shall be purchased in excess of 49.99% of the share capital. The existence of this agreement and its content were notified to the NSMC on
November 8, 2006. This agreement regulates a series of restrictions on the transfer of shares held by the parties signing the agreement during the first
two years after the listing of the company and during the first five years, and certain commitments in the event that a public offering is formulated on
the shares of the company and preferential acquisition rights of the subscribing shareholders.
128
The parties signing this agreement are the following shareholders:
Shareholder
Share %
Mezouna, S.L.
Onchena, S.L.
AtlanPresse S.A.
Odofy, S.A.
Madoan, S.A.S.
Roflu, S.A.
Ybazubi, S.L.
10.38%
7.98%
7.37%
6.19%
5.39%
1.89%
0.79%
0.79%
0.57%
0.46%
0.46%
0.45%(*)
0.45%
0.33%
0.10%
0.08%
(*) With the authorisation of all the Agreement subscribers, in a deed dated November 12, 2007, authorised by the Notary of Madrid Mr. Pedro de la Herran, with number 3021 of his
record, the Winding up and Dissolution of the company Garmyba Invest, S.L., was executed and the ensuing awarding of shares in that company made to the sole shareholder Desarrollos
y Servicios de Inversión, S.A., which later subscribed the Agreement.
f. The applicable rules for appointing and replacing members of the board of management and modifying the Company Articles;
As established in the Public Limited Companies Act, and the Board of Management Regulation, the Board Members shall be those designated, reelected or ratified by the General Shareholders Assembly or the Board of Management, as is applicable, pursuant to the provisions of the Public Limited
Companies Act and the Company Articles. It is not necessary to be a Company shareholder to be appointed director.
Proposals for appointing, re-electing and ratifying Board Members submitted by the Board of Management to the consideration of the General
Shareholders Assembly and the decisions for appointing them taken by the Board itself by virtue of the powers of co-optation it legally holds, shall, in
turn, be preceded by (i) the respective proposal from the Appointments and Salaries Commission in the case of independent board members and (ii) a
report by that Commission for other board members. In the case of re-election or ratification, the proposal or report of the Commission shall contain
an assessment of the work and effective dedication in the post during the last period of time the proposed director occupied the post. In all cases, if
the Director is removed from the proposal by the Commission of Appointments and Salaries, this decision shall be justified and a record made of the
reasons for that decision.
In selecting the person to be proposed for the post of director, importance shall be given to this person being of reputed standing, competence and
with sufficient experience.
With respect to board members representing shareholders, these shall include the persons proposed by the respective holders of stable holdings in the
share capital that are considered as being of sufficient importance.
The responsibilities of each director shall be explained by the Board to the General Shareholders Assembly, which shall make or ratify the appointment.
The post of Director shall have a term of six years, and Directors may stand for re-election.
Directors shall resign from their posts when the term for which they were appointed has lapsed, and when this is decided on by the General Assembly,
through the use of the powers conferred upon it.
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Furthermore, the directors may inform and resign, as necessary, in all cases in which they may harm the name and standing of the company and in
particular, if: the reasons for which they were appointed no longer exist; if they are involved in any of the alleged cases of incompatibility or legally
prohibition provided for; if they are severely reprimanded by the Auditing and Compliance Commission or by the Appointments and Salaries
Commission for being in breach of any of their obligations as directors.
With respect to independent directors, once elected or ratified in their posts, the Board shall not propose their resignation prior to the expiry of the
statutory term for which they were appointed, except in the event of just cause, acknowledged by the Board, and following a report by the
Appointments and Salaries Commission and except if, as a consequence of operations entailing a change in the capital structure, those changes imply
a change in the board structure, so that it reflects the proportion between the share capital represented by the members representing the shareholders
and the rest of the capital.
In all cases, Board Members shall be obliged to inform the Board of any criminal proceedings in which they may be involved as defendants, and the
outcome of such proceedings. If any director is tried in court or a verbal court proceeding is filed against him for any of the offences indicated in article
124 of the Public Limited Companies Act the Board shall examine the case and in view of the specific circumstances, decide whether or not to allow
the director to continue occupying his post.
As provided by the Public Limited Companies act and Company Articles, the ordinary or extraordinary General Shareholders Assembly is authorised to
modify the company articles.
For a resolution to modify the articles to be validly passed, all the shareholders, either in person or represented, are required to be present at the first
calling, representing at least fifty per cent of the subscribed capital with voting rights and at the second calling, the attendance of twenty-five per cent
of the capital shall be deemed sufficient. However, if shareholders are present representing less than fifty per cent of the subscribed capital with voting
rights, the resolution to modify the articles shall only be valid with the favourable vote of two-thirds of the capital present or represented at the
Meeting.
For a General Assembly at which a statutory modification is proposed for approval, each item or group of items that are substantially independent shall
be voted separately.
g. The powers of the board of management and in particular, those relating to the possibility of issuing or repurchasing shares
The Company’s policy is to delegate all the powers of the Board of Management that can be delegated, in conformity with the law, Articles and
Regulations, in favour of one Executive Commission and one Executive Officer.
At the time of drawing up this report, the Executive Commission consists of the following members:
Chairman: Mr. Diego del Alcázar Silvela
Chief Executive Officer: Mr. José Manuel Vargas Gómez
Officers: Mr. Santiago Bergareche Busquet
Mr. Alvaro Ybarra Zubiría
Mezouna, S.L. represented by Mr. Ignacio Ybarra Aznar
At the time of writing this report, the Chief Executive Officer is Mr. José Manuel Vargas Gómez, who, in exercising his executive powers, and by virtue
of what is set forth in article 14 of the Board of Management Regulations, shall inform the Executive Commission of any operation exceeding 3 million
Euros prior to executing it.
The Board of Management has powers conferred on it by the General Shareholders Assembly held on April 25 2007, for the acquisition of own equity
up to a limit of 5%, and for a term of 18 months from the date of the foregoing General Assembly.
At the Extraordinary General Assembly held on September 5, 2006 it was agreed to authorise the Board of Management to reach agreement, within a
term of five years, on one or several capital increases up to a maximum of 12,497,030 Euros, with the option of excluding the preferential subscription
right under the terms of article 159 of the Public Limited Companies Act.
130
h. All significant agreements approved by the Company and entering into force shall be modified or concluded in the event of a change
in the Company’s shareholders, based on a public acquisition offer and its effects, as well as their effects, unless their should cause
serious harm to the Company. This exception shall not apply if the Company is legally obliged to disclose such information
No agreements exist that consider this scenario.
i. Any agreements between the Company and its administrative officers and management or employees implying the payment of
compensation in the event of resignation or unfair dismissal, or in the case of the employment contract reaching its term on occasion
of a public acquisition offer
Senior Managers have a clause in their contracts that determines the compensation due in the event of unfair dismissal for a sum ranging from what is
established by labour legislation to up to 3 years’ gross annual salary. As an exception, in these cases, the contracts of lower level directors include
clauses of this type in some cases, establishing a compensatory payment of 1 years’ gross annual salary.
In the case of the former Chief Executive Officer, Mr. Belarmino García, until his resignation on January 27, 2008, the clauses of his contract include a
term of notice prior to terminating the contract and an amount in compensation of between 3.5 years of full salary or 3 years of his fixed salary plus
55% of variable salary for the last year, depending on the date on which the contract was terminated. In addition, a non-competition clause was
established for a term of 2 years, amounting to one year’s salary.
131
Corporate Governance
VOCENTO, S.A.
ANNUAL CORPORATE GOVERNANCE
REPORT 2007
132
A. SHARE OWNERSHIP STRUCTURE
A.1. Complete the following table for the company´s share capital:
• Date of last modification: 31.12.01
• Share capital (€): 24,994,061.20
• Number of shares: 124,970,306
• Number of voting rights: 124,970,306
Indicate if there are different classes of shares with different rights associated to them:
Yes
X
No
A.2. Direct and indirect owners of significant stakes at the end of the year, excluding Directors:
Name or company name
Number of direct voting rights
% of total voting rights
10,281,476
8.227%
9,975,388
7.982%
Bestinver Gestión, S.A., S.G.I.I.C
3,772,751
3.019%
Casgo, S.A.
5,532,008
4.427%
8,017,929
6.415%
Onchena, S.L.
6,836,456
5.470%
Valjarafe, S.L.
11,097,249
8.880%
Most significant movements in the shareholder structure in the year:
There have not been.
133
A.3. List of Directors with voting rights in the company:
Name or Company name or
the Director owner of the holding
Number of direct
voting rights
María del Carmen Careaga Salazar
Catalina Luca de Tena García Conde
Soledad Luca de Tena García Conde
Álvaro Ybarra Zubiría
Víctor Urrutia Vallejo
MEZOUNA, S.L.
Number of indirect voting rights (*)
31,394
7,830
51
3,000
154,476
4,214
58,851
36,309
4,463
500
414,487
4,726,367
12,974,368
24,653
0.045%
0.006%
5.470%
0.007%
0.124%
0.003%
0.047%
0.029%
0.458%
6.500%
8.659%
3.782%
10.382%
6,836,456
6,739
566,892
8,123,161
10,406,195
(*) Via:
Name or Company name or
the direct owner of the holding
Number of direct voting rights
AZALVARO, S.L.
Mrs. María Benjumea Cabeza de Vaca
ONCHENA, S.L.
Mrs. María Teresa Artaza Martínez
SQUIRT LINES, S.L.
ENERGAY DE INVERSIONES, S.L.
GOGOL DE INVERSIONES, S.L.
ASUA DE INVERSIONES, S.L.
ROLAR DE INVERSIONES, S.L.
13,204
11,629
6,836,456
6,739
566,892
8,017,929
105,232
10,281,476
124,719
0.011%
0.009%
5.470%
0.005%
0.454%
6.416%
0.084%
8.227%
0.100%
Total percentage in the power of the Board of Directors: 35.512%
Table of options for shares of Directors:
Name or Company name of
the Director owner of the holding
Number of direct
voting rights
Number of indirect
voting rights (*)
Number of equivalent shares
A.4. Relationships of a family, commercial, contractual or company nature between major shareholders:
Name or company name of related parties
134
Type of relationship
Brief description
A.5. Relationships of a commercial, contractual or company nature between major shareholders and the company,
unless there are not material or the result of ordinary business:
Name or company name of related parties
Type of relationship
Brief description
A.6. Indicate if the company has been informed of the shareholder agreements which affect it, in accordance with
art.112 of the law on securities markets. Describe briefly the shareholders bound by the pact:
X
Yes
No
Involved in shareholder agreement
% of share capital affected
Víctor Urrutia Vallejo
Onchena, S.L.
Mezouna, S.L.
ATLANPRESSE, S.A.
Madoan, S.A.S.
Roflu, S.A.
Ybazubi, S.L.
Odofy, S.A
7.368%
0.332%
0.100%
6.190%
0.084%
5.388%
10.382%
7.982%
0.790%
0.790%
1.891%
0.454%
0.457%
0.457%
0.455%
0.569%
Brief description of pact
Between 21 and 29 September 2006, the shareholders listed in A.6
made an agreement to optimize the value of the shares of VOCENTO,
S.A, which was then ratified by public deed at the Notary of Madrid,
Carlos Ruiz-Rivas Hernando on 3 November 2006. The pact establishes
that no adhesions will be accepted that exceed 49.99% of share capital.
The existence of this agreement and its content was stated to the CNMV
on 8 November 2006. It sets a series of restrictions on the transfer of
shares in the first two years following the listing of the company, and in
the first five years sets commitments in the event of a bid being made
for shares of the company, with preference acquisition rights for the
shareholders involved. With the authorisation of all signatories to the
Agreement, elevated to a deed on 12 November 2007 by the notary of
Madrid, Pedro de la Herran, with protocol number 3021, Garmyba
Invest, S.L., was the wound up and liquidated, and the shares were
awarded to the sole shareholder Desarrollos y Servicios de Inversión,
S.A., which later signed the Agreement.
Indicate if the company is aware of the existence of concerted actions between its shareholders, and if so describe briefly:
Yes
X
No
Parties in the concerted action
% of share capital involved
Brief description of action
In the event of any modification or breaking of these pacts or agreements in the year, indicate it here:
135
A.7. Indicate if there is any individual or legal entity that exercises or could exercise control of the company, in
accordance with article 4 of the securities market law:
Yes
X
No
A.8. Fill in the following table concerning the company’s treasury stock:
At year end:
Number of direct shares
2,224,675
Number of indirect shares
% of capital
0
1.78%
(*) Via:
Name or company name of the direct owner of the stake
Number of direct shares
Total:
Detail of significant changes, in accordance with Royal Decree 1362/2007, made in the year:
Date of information
Total direct shares acquired
Total indirect shares acquired
% of share capital
Capital gains / (losses) from sales of treasury stock in the period:
A.9. Detail the conditions and periods authorised by the shareholder assembly to the board for making acquisitions or
sales of company shares described in A.8.
The General Shareholder Meeting of 25 April 2007 agreed unanimously, in relation to the fourth point of the day (authorisation for the company to be
able to proceed to buy its own shares, directly or using Group companies, in accordance with Article 75 of the Revised Text of the Law on
Corporations), on the following:
In accordance with Articles 75 and following of the Law on Corporations, and leaving without force the unexecuted authorisation granted in the same
area by the shareholder meeting of 5 September 2007, authorise and award the Board of Directors for the Company to directly or using a subsidiary
buy shares of the Company in the following conditions:
1. Forms of acquisition: by sale agreement or any other “inter vivos” agreement for those Company shares that the Board of Directors thinks
appropriate, within the limits established in the following sections.
2. Maximum number of shares to acquire: representative shares which when added to those already owned do not exceed 5% of share capital.
3. Minimum and maximum acquisition price: the acquisition price will be not less than 75% of the listed price or over 20%, in both cases on the
working market day before the acquisition.
4. Duration of the authorisation: 18 months, from the adoption of this agreement.
The acquisition should enable the Company, in any event, to establish the reserve of article 79.3 of the Law on Corporations, without diminishing the
capital or reserves that are unavailable by law or statutes. The shares to be acquired must be fully paid in.
It is expressly authorised that the shares acquired by the Company or its subsidiaries in the use of this authorisation may be used, partly or fully, to be
given or sold to workers, employees, Directors or service providers of the Group, when there is a recognised right, either directly or as the result of the
exercise of options that they own, in the terms of the last paragraph of article 75 section 1 of the Law on Corporations.
136
A.10. Indicate the legal and statutory restrictions on the exercise of voting rights and the legal restrictions on the
acquisition or transfer of stakes.
Legal restrictions on the exercise of voting rights:
Yes
X
No
Maximum percentage of voting rights that a shareholder is legally restricted to:
Statutory restrictions on the exercise of voting rights:
Yes
X
No
Maximum percentage of voting rights that a shareholder is restricted to by statutes:
Description of the legal and statutory restrictions on the exercise of voting rights:
Article 44.1 of the Law on Corporations states that “the shareholder who has defaulted in the payment of dividends may not exercise voting rights.”
Legal restrictions on the acquisition or transfer of share capital holdings:
Yes
X
No
Description of the legal restrictions on the acquisition or transfer of share capital holdings:
A.11. Indicate if the Shareholder Meeting has agreed to adopt measures for neutralisation of a public bid in accordance
with Law 6/2007.
Yes
X
No
If applicable, explain the measures taken and the terms in which the restrictions would be inefficient:
B. ADMINISTRATIVE STRUCTURE OF THE COMPANY
See section G OTHER INFORMATION OF INTEREST
B.1. Board of Directors
B.1.1. Detail the maximum and minimum number of Directors according to the statutes.
Maximum: 18
Minimum: 3
137
B.1.2. Complete the following table with members of the Board.
of the Director
Representing
Mr. Diego del Alcázar Silvela
Mr. José María Bergareche Busquet
Mrs. Catalina Luca de Tena García-Conde
Mr. Enrique Ybarra e Ybarra
Mr. Belarmino García Fernández
Mr. Claudio Aguirre Pemán
Mr. Santiago Bergareche Busquet
Mrs. María del Carmen Careaga Salazar
Mr. Carlos Castellanos Borrego
Mr. Alejandro Echevarría Busquet
Mr. Santiago de Ybarra y Churruca
Mr. Álvaro Ybarra Zubíria
MEZOUNA, S.L.
Mr. Ignacio Ybarra Aznar
Mme. Hélene Lemoîne
Position on
the board
Date of first
appointment
Date of last
appointment
Electoral procedure
Chairman
First vice-chairman
Vice-Chairman
Vice-Chairman
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
26-11-2001
08-06-1989
26-11-2001
18-06-1974
24-04-2007
05-09-2006
26-11-2001
26-11-2001
29-05-1996
27-06-1966
26-11-2001
04-06-1981
08-06-1989
22-05-1991
20-07-2006
22-05-1990
24-09-2007
25-07-2007
05-09-2006
05-09-2006
25-07-2007
05-09-2006
05-09-2006
05-09-2006
05-09-2006
05-09-2006
05-09-2006
05-09-2006
30-07-2007
05-09-2006
05-09-2006
05-09-2006
General Shareholder
General Shareholder
General Shareholder
General Shareholder
Board of Directors
General Shareholder
General Shareholder
General Shareholder
General Shareholder
General Shareholder
General Shareholder
General Shareholder
General Shareholder
General Shareholder
General Shareholder
General Shareholder
Total number of Directors: 16
Indicate any decline in numbers:
Name or company name of the Director
Condition of the Director at the time of leaving
Date of leaving
B.1.3. Complete the following table on the members of the board and their condition.
EXECUTIVE DIRECTORS
Committee which proposed appointment
Role in the company
Appointments and Remuneration Committee
Total number of executive Directors: 1
Total % of Board: 6.25%
138
EXTERNAL REPRESENTATIVE DIRECTORS
of the Director
Committee which
proposed appointment
Name or company name of the significant shareholder
they represent or which appointed them
Mrs. Soledad Luca de Tena García-Conde
(represented by Mme. Hélene Lemoîne)
MEZOUNA, S.L. (represented
by Mr. Ignacio Ybarra Aznar)
BYCOMELS PRENSA, S.L.
CASGO, S.A.
ONCHENA, S.L.
VALJARAFE, S.L.
VALJARAFE, S.L.
MEZOUNA, S.L.
MEZOUNA, S.L.
Total number of representative Directors: 10
% of Board: 62.50%
EXTERNAL INDEPENDENT DIRECTORS
Profile
Financial
Business
Financial
Total number of independent Directors: 3
% of Board: 18.75%
OTHER EXTERNAL DIRECTORS
Committee which proposed appointment
Total number of other external Directors: 2
% of Board: 12.50%
Detail the reasons why they cannot be considered as representative or independent, and their links either to the company or its management, or to its
shareholders:
of the Director
Reasons
Company, management, or
shareholder with whom there are lins
Chief Executive Officer of Grupo Correo de Comunicación, S.A.
until 2001 and then Director Deputy to the Chairman until 2006.
Chief Executive Officer de VOCENTO, S.A., until the year which
is the subject of this current report (25 July 2007).
VOCENTO, S.A.
VOCENTO, S.A.
139
Indicate any variations that have occurred in the period in the classification of each Director:
Date of change
Previous
Current
25-07-07
25-07-07
Executive
Independent
Other Externals
Executive
B.1.4. Explain if applicable the reasons why representative shareholders have been appointed with a stake of under 5% of share capital:
Name or company name of shareholder
Explanation
CASGO, S.A.
At the time of the appointment, the stake was over 5%.
At the time of the appointment, the stake was over 5%.
Indicate if the formal requests for a position on the Board from shareholders with an equal or higher stake than others with representative shareholders
have been granted. If not, explain why:
Yes
No
B.1.5. Indicate if any Director has abandoned his role before the expiry of the mandate, if the Director has explained their reasons and in
what medium to the Board, and if this has been in writing to the entire Board, explain the motives given:
Name of the Director
Reason for exit
B.1.6. Indicate if applicable the powers delegated to the executive Directors::
140
Brief description
In the exercise of his role has all powers except those which legally or by statutes cannot be assigned, in
accordance with article 19 of the statutes and article 14 of the rules of procedure of the board of Directors,
with the limitation that the latter includes in its last paragraph, that any operation of more than 3 million
euros requires the Executive Committee to be informed by the Chief Executive Officer before it is realised.
B.1.7. Identify if applicable the members of the Board who have a Director’s or management role in other companies that form part of
the listed company:
Name of the group company
Role
CORPORACIÓN DE MEDIOS DE MURCIA, S.A.
DIARIO ABC, S.L.
SOCIEDAD VASCONGADA DE PUBLICACIONES, S.A.
DIARIO EL CORREO, S.A.
EL NORTE DE CASTILLA, S.A.
DIARIO ABC, S.L.
RADIO PUBLI, S.L.
DIARIO ABC, S.L.
ABC DE SEVILLA, S.L.U.
CORPORACIÓN DE MEDIOS DE ANDALUCÍA, S.A.
EDITORIAL CANTABRIA, S.A.
EL COMERCIO, S.A.
NUEVA RIOJA, S.A.
DIARIO ABC, S.L.
EDITORIAL CANTABRIA, S.A.
DIARIO ABC, S.L.
ABC DE SEVILLA, S.L.U.
RADIO PUBLI, S.L.
FEDERICO DOMENECH, S.A.
GRUPO EUROPRODUCCIONES, S.A.
CORPORACIÓN DE MEDIOS DE CÁDIZ, S.L.
SOCIEDAD GESTORA DE TELEVISIÓN ONDA 6, S.A.
EL NORTE DE CASTILLA, S.A.
Director
Director
Chairman of the Board
Director
Director
ViceChairman of the Board
Director
Chairwoman of the Board
Chairwoman of the Board
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Vicechairwoman of the Board
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
FACTORÍA DE LA INFORMACIÓN, S.A.
Chairman and CEO
Mr. Ignacio Ybarra Aznar (representative of MEZOUNA, S.L.)
Mr. Ignacio Ybarra Aznar (representative of MEZOUNA, S.L.)
PRENSA MALAGUEÑA, S.A.
Director
Director
141
B.1.8. Detail if applicable the Directors of the company who are members of the Board of other companies that are listed on Spanish
stock markets and that the company has been informed of:
Name of the listed company
Role
GESTEVISIÓN TELECINCO, S.A.
BANCO GUIPUZCOANO, S.A.
GRUPO FERROVIAL, S.A.
DINAMIA CAPITAL PRIVADO, S.C.R., S.A.
GAMESA CORPORACIÓN TECNOLÓGICA, S.A.
GESTEVISION TELECINCO, S.A.
ACCIONA, S.A.
COMPAÑÍA VINÍCOLA DEL NORTE DE ESPAÑA, S.A.
TUBACEX, S.A.
COMPAÑÍA VINÍCOLA DEL NORTE DE ESPAÑA, S.A.
IBERDROLA, S.A.
Director
Director
ViceChairman
Chairman
Director
Chairman
Director
Director
Director
Director
ViceChairman
B.1.9. Indicate and explain if the company has established rules on the number of boards which its Directors may be part of::
X
Yes
No
Explanation of the rules
In accordance with Article 30.3 of the Rules of procedure of the Board, the Directors may not, except for express authorisation of the Board, after a
report from the Appointments and Remuneration Committee, form part of more than 8 boards, excluding (i) Companies which are part of the same
group as the company, (ii) the Boards of family companies of Directors or their families, and (iii) the Boards of which they form part because of
professional relations.
B.1.10. In relation to recommendation number 8 of the Unified Code, signal the general policies and strategies of the company that the
Board has reserved the right to approve in a full meeting:
Policies for investment and financing
X
Yes
No
The definition of the structure of the group of companies
X
Yes
No
Corporate social responsibility policy
X
Yes
No
Corporate governance policy
X
Yes
No
The strategic plan or business plan, and management targets and annual budgets
X
Yes
No
Remunerations policy and the evaluation of the performance of senior management
X
Yes
No
Risk control and risk management policy, and the regular monitoring of internal systems for information and control
X
Yes
No
Dividend policy, and treasury stock policy and limitations
X
142
Yes
No
B.1.11. Complete the following tables for the aggregated remuneration of Directors in the year:
a. In the company which is the subject of the current report:
Remunerative concept
Data in thousand euros
Fixed remuneration
Variable remuneration
Allowances
Statutory payments
Share options and/or other financial instruments
Others
TOTAL:
947
500
555
1,201
-----6,167 (*)
9.370
(*) Just the payment of compensation to the former Chairman of the Board Santiago Ybarra Churruca and the former Chief Executive Officer José María Bergareche Busquet
Other benefits
Advances
Loans
Contributions to pension funds and pension plans
Liabilities for pension funds and pension plans
Life insurance premiums
Guarantees set up by the Company for Directors
----------177
-----24
------
b. To Directors for belonging to other boards and/or management of group companies:
Remuneration concept
Fixed remuneration
Variable remuneration
Allowances
Statutory payments
Share options and/or other financial instruments
Others
TOTAL:
Other benefits
276
-----74
285
----------635
Advances
Loans
Contributions to pension funds and pension plans
Liabilities for pension funds and pension plans
Life insurance premiums
Guarantees set up by the Company for Directors
----------12
-----3
------
c. Total remuneration by type of Director:
Type of Director
Executive
External Representative
External Independent
Other External
Total
Company
Group
351
4,336
385
4,298
9,370
-----550
-----85
635
143
d. Compared to net attributable profit of parent company:
• Total compensation of Directors (in thousand euros): 10,005
• Total remuneration to Directors/ profit attributable to parent company (in %): 12.15%
B.1.12. Identify the members of senior management who are not executive Directors and indicate the total remuneration paid them in
the year:
Role
Mr. Miguel Abellán Andrés
Mr. Iñaki Arechabaleta Torrontegui
Mr. Enrique Marzal López
Mrs. Beatriz Puente Ferreras
Mr. José Manuel Vargas Gómez
Mrs. María José Villarubia Castelero
Director of New Markets
Director of Local Markets
Director of Internal Audit
Chief Financal Officers
Director of National Market
Director of Resources
Total remuneration for senior management (in thousand euros): 1,499
B.1.13. Identify if there are clauses for guarantees or protection, in the event of dismissal or changes of control to the benefit of senior
management, including executive Directors, of the company or of the group. Indicate if these contracts have to be reported to or
approved by company institutions or by the group:
Number of beneficiaries: 5
Board of Directors
Body authorising the clauses
General Assembly
x
Is the Shareholder Meeting informed of the Clauses: NO
B.1.14. Indicate the process for establishing the remuneration of the members of the board and the relevant clauses in the statutes.
Process for establishing the remuneration of the members of the board and the relevant clauses in the statutes
In accordance with Art. 21 of the Company statutes, the role of member of the Board of Directors, by express statement of the statutes, will be
remunerated, unless the AGM agrees otherwise and modifies the Statutes.
The remuneration of the Board of Directors will be five percent (5%) of profits after covering the requirements of legal and statutory reserves, and after
recognising for a dividend of four per cent.
The Board of Directors will be able, in appropriate circumstances, to change the effective percentage each year, within the maximum limit, and also to
establish rules for administering it among its members based on their dedication, responsibility and other circumstances, after a report from the
Appointments and Remuneration Committee.
The process for establishing remuneration is found in Articles 21 of the Company Statutes and Articles 28 and 29 of the Rules of procedure of the
Board, available on the company web site.
144
Indicate if the Board reserves the approval of the following decisions:
On the proposal of the leading executive of the company, the appointment or dismissal of senior management, and compensation
clauses.
X
Yes
No
The remuneration of Directors, and for executive Directors the additional remuneration for their executive functions, and other
conditions which their contracts must respect
X
Yes
No
B.1.15. Indicate if the Board of Directors has approved a detailed remunerations policy and specify the questions that it addresses:
X
Yes
No
Amount of the fixed component, and the allowances paid for participation in the Board and in its Committee meetings, and an estimate
of the annual fixed payment based on this
X
Yes
No
Variable remuneration items to be paid
X
Yes
No
Main features of the welfare payments, with an estimate of their amount in total or of their equivalent cost
X
Yes
No
Conditions which must be respected in the contracts of those people with a senior management role, such as executive Directors
X
Yes
No
B.1.16. Indicate if the Board submits to the vote of the AGM as a separate point of the day, and with a consultative nature, a report on
the remunerations policy for Directors. Explain if applicable the aspects of the report on the remunerations policy approved by the
Board for future years, the most significant changes in these policies applied in the year, and an overall summary of how the policy was
applied in the year. Detail the role of the Remuneration Committee and, if external advisors have been used, the identity of the external
consultants who have been used:
Yes
X
No
Questions addressed by the report on remunerations policy:
145
Role of the Remuneration Committee
• Evaluate the competences, knowledge and experience needed at the Board, define the functions and necessary skills of candidates to cover each
vacancy, and evaluate the time and dedication needed to carry out their work well.
• Examine organise, in the most appropriate way, the succession for the Chairman and the first executive office, and if needed make proposals to
the Board for this succession to be orderly and well planned.
• Provide information on the appointments and dismissals of senior management that the first executive officer proposes to the Board.
• Inform the board on questions of diversity among members of the Board of Directors.
• Propose to the Board of Directors:
i) The remuneration policy for Directors and senior management;
ii) The individual remuneration of executive Directors and other conditions in their contracts.
iii) The basic conditions of the contracts of senior management.
• Monitor the observance of the remuneration policy established by the company.
Has external advice been used?
X
Yes
No
Identity of the external consultants: SPENCER STUART and HAY GROUP
B.1.17. Indicate, if applicable, the identity of the members of the board who are also members of the Board of Directors or management
at companies with significant stakes in the listed company and/or group companies:
Company name of the significant shareholder
Role
Mrs. Catalina Luca de Tena García Conde
Mr. Santiago de Ybarra Churruca
representing SATURRARÁN, S.A.
ONCHENA, S.L.
CASGO, S.A.
VALJARAFE, S.L.
VALJARAFE, S.L.
MEZOUNA, S.L.
Director
Chairwoman
Director
Joint Director
Joint Director
Sole Director
Sole Director
Director in representation
of SATURRARÁN, S.A
Detail any relevant relationships not included in the section above, between members of the Board of Directors and significant shareholders and/or
companies in the group:
Name or company name of
the related Director
Name or company name of the related
significant shareholder
Description of relationship
José María Bergareche Busquet is the brother of
Santiago Bergareche Busquet and a significant
shareholder in Bycomels Prensa, S.L
B.1.18. Indicate any modifications made this year to the rules of procedure of the Board:
Yes
X
No
Description of modifications:
146
B.1.19. Indicate the procedures for appointment, re-election, evaluation and removal of the Directors. Detail the competent bodies, the
procedures to be followed, and the criteria used in each procedure.
In accordance with article 16 of the Company Statutes, the designation of the Directors corresponds to the AGM, the mandate will last for six years,
and they may be re-elected one or more times.
According to article 24 of the Rules of Procedure for the Board, the Directors will leave their position after the expiry of the period for which they were
appointed, applying article 145 of the Rules of the Mercantile Registry, and when the Shareholder Meeting decides this in the use of the attributions if
has been awarded.
Persons appointed as Directors will have to meet the conditions demanded by Law or by the Statutes.
The regulation of these procedures is found, in addition to the legislation, also in article 16 of the Company Statutes which establish the composition
of the Board of Directors and the duration of the role, and in articles 10, 11, 22, 23 and 24 and of the Procedures of the Board of Directors, which
establish the qualitative and quantitative composition of the Board, and the procedures for appointment and re-election, and the duration and
dismissal of Directors.
B.1.20. Indicate the circumstances in which Directors are obliged to resign.
These circumstances are listed in Article 24 in the Procedures for the Board, available on the company web page.
B.1.21. Explain if the role of leading executive is also the position of Chairman of the Board. If applicable, indicate measures taken to
limit the risks of the accumulation of powers in one person.
Yes
X
No
Measures to limit risks:
Indicate and explain if rules have been established which enable an independent Director to request a meeting of the Board or the inclusion of new
points in the order of the day, to coordinate and articulate the concerns of external Directors and to direct their evaluation by the Board of Directors.
X
Yes
No
Explanation of the rules
Article 20 of the Procedure for the Board of Directors establishes that any Director may propose other points of the day than those initially proposed,
before the meeting of the Board, by informing the Secretary. In addition the Chairman will have the ability to propose to the Board of Directors those
matters which he thinks appropriate for the good performance of the company, regardless of whether they appear in the order of the day.
B.1.22. Are there greater majorities required for any sort of decision except for those in legislation?
Yes
X
No
147
Indicate how agreements are adopted by the Board of Directors, indicating at least the minimum quorum and the sort of majorities needed to adopt
agreements:
Adoption of Agreements
Description of agreement
Quorum
Type of Majority
Any type of agreement
When there are present or represented half
plus one member
To modify the Procedures
for the Board
When there are present or represented half
plus one member
Except those cases where the law requires a higher majority, an
absolute majority is required of the members of the board attending
the meeting personally or by representation.
Can only be modified at the request of the Chairman, of one of the
Committees which is covered by the Procedures, or of one quarter of
the Directors, and modification requires the absolute majority of the
members of the Board of Directors.
B.1.23. Indicate if there are specific requirements for being appointed Chairman which are different to those for Directors.
Yes
X
No
Description of requirements:
B.1.24. Indicate whether the Chairman has the casting vote:
X
Yes
No
Areas where there is a casting vote:
In accordance with Article 17 of the Company Statutes and 12.3 of the Procedures for the Board of Directors, in the event of a drawn vote the
Chairman has the casting vote.
B.1.25. Indicate whether the Statutes or Procedures for the Board establish an age limit on Directors:
Yes
X
No
B.1.26. Indicate whether the Statutes or Procedures for the Board establish limits on the mandate for independent Directors:
X
Yes
No
Maximum number of years of mandate: 12
B.1.27. In the event of a limited or zero number of female Directors, explains the reasons for this and the initiatives taken to correct this
situation.
Not applicable
In particular, indicate if the Appointments and Remuneration Committee has established procedures for the selection processes not to suffer from the
implicit biases which are an obstacle to the selection of female Directors, and is looking deliberately for female candidates with the profile required:
Indicate main procedures:
148
B.1.28. Indicate if there are formal procedures for the delegation of votes in the Board of Directors. Briefly detail any procedures.
In accordance with article 17.3º of the Company Statutes, the Directors may only be represented in the board by another member. The representation
must be awarded in writing to the Chairman of the Board, and must be of special nature for each meeting. Article 21.1 of the Procedures of the Board
establishes that when representation of Directors is indispensable, it must be awarded to another member of the board in writing to the Chairman,
with instructions and of a special nature for each meeting.
B.1.29. Indicate the number of meetings of the Board of Directors in the year. Indicate any times that the board has met without the
presence of the Chairman.
Number of Board meetings: 13
Number of Board meetings without presence of Chairman: 0
Indicate the number of meetings held in the year by the various committees of the Board:
Nr of meetings of the Executive Committee: 6
Nr of meetings of the Audit Committee: 6
Nr of meetings of the Appointments and Remuneration Committee: 13
Nr of meetings of the Appointments Committee:
Nr of meetings of the Remuneration Committee:
B.1.30. Indicate the number of meetings held by the Board of Directors in the year without the full attendance of all members, including
meetings with representatives without specific instructions.
Number of meetings with absent Directors: 3
% of abstences over total votes in the year: 1.44%
B.1.31. Indicate if the annual individual and consolidated accounts that are presented for approval of the board are previously certified:
Yes
X
No
Identify the person(s) who has certified the individual and consolidated annnual accounts of the company to be approved by the Board:
B.1.32. Explain any mechanisms established by the Board of Directors to avoid the individual and consolidated accounts drawn up by it
from being presented in the General shareholder meeting with qualifications in the audit report.
Articles 8 and 18 of the Procedure for the Board establish respectively the specific functions for annual accounts and the management report, and the
functions of the Audit and Compliance Committee.
B.1.33. Is the Secretary of the Board a Director?
Yes
X
No
149
B.1.34. Explain the procedures for the appointment and dismissal of the Secretary of the Board, indicating if these are informed by the
Appointments Committee and approved by the full Board.
Procedure for appointment and dismissal:
The procedure for the appointment and dismissal of the Secretary of the Board is regulated by Articles 22 and 24 of the Procedures of the Board.
Does the Appointments Committee report on the appointment?
X
Yes
No
Does the Appointments Committee report on the dismissal?
X
Yes
No
Does the full Board approve the appointment?
X
Yes
No
Does the full Board approve the dismissal?
X
Yes
No
Does the Secretary of the Board have the function in particular of monitoring good governance recommendations?
X
Yes
No
Observations. In accordance with article 14 of the Procedure of the Board, the Secretary of the Board of Directors must ensure that the actions of the
Board reflect the good governance recommendations accepted by the company.
B.1.35. Indicate if applicable any mechanisms established by the company to preserve the independence of the auditor, of financial
analysts, of investment banks and of rating agencies.
Article 18 of the Rules for the Procedure of the Board 18 del Rules for the Procedure of the Board, concerning the Audit and Compliance Committee
mentioned before has various sections related to External Audit (in particular 18.3.2 and 5; and 18.4.2) and in addition article 48 of the same Rules
establishes the relations of the Board of Directors with the company auditors.
B.1.36. Indicate if during the year the Company has changed external auditor and if applicable identify both outgoing and incoming
auditor.
Yes
X
No
In the event of disagreements with the outgoing auditor, explain the reasons for these:
150
B.1.37. Indicate whether the Auditors Report on the Annual Accounts of the previous year has reservations or qualifications. Indicate the
reasons given by the Chairman of the Audit Committee to explain the content and scale of these reservations or qualifications.
X
Yes
No
Company
Total for work other than audit (thousand euros)
Total of other work as % of total fees of auditing firm (%)
114
36.42%
Group
125
12.78%
Total
239
18.51%
B.1.38. Indicate whether the Auditors Report on the Annual Accounts of the previous year has reservations or qualifications. Indicate the
reasons given by the Chairman of the Audit Committee to explain the content and scale of these reservations or qualifications.
Yes
X
No
Explanation of the reasons:
B.1.39. Indicate the number of years that the current audit firm has without interruption audited the annual accounts of the company
and/or group. Also indicate the percentage which this number of years audited by the firm is of the total number of years in which
annual accounts have been audited.
Number of uninterrupted years
Number of years audited by the current firm/years the company has been audited (%)
Company
Group
18
100
18
100
The Board of Directors of VOCENTO, S.A., agreed with the proposal of the Audit and Compliance Committee to maintain as the auditor of the
consolidated group and of VOCENTO, S.A., and the rest of the companies in the group, the firm Deloitte, except for those included in the audiovisual
area, in which the Administrative Bodies and Shareholder Meetings, based on the recommendation of the Board of Directors of VOCENTO, S.A.
appointed KPMG as the new Auditor of the Accounts for these companies.
Elsewhere the company Factoría de la Información, S.A., the publisher of the free newspaper Que!, is audited by KPMG, which was appointed by the
company before its acquisition by VOCENTO, S.A.
151
B.1.40. Indicate the stakes of members of the Board of Directors in the capital of companies with the same, similar or complementary
activity as the business of the company and of its group, and which have been informed to the company. Also indicate the position or
function that they exercise in these companies
Name or company name of Director
Name of company
Agencia de Televisión Latinoamericana
% stake
Role or functions
0.005
0.000
Chairman
Chairman
0.000
0.740
0.000
95.000
99.990
99.980
99.000
100.000
100.000
75.000
5.000
47.400
0.002
0.006
0.000
0.000
0.000
Chairman
de Servicios y Noticias España, S.A.
Mrs. Hélene Lemoîne
(representative of ATLANPRESSE)
Mrs. Hélene Lemoîne
(representative of ATLANPRESSE)
Publiespaña, S.A.
Merca Red, S.A.
ONO, (CABLEUROPA, S.A.)
Societe D’Edition de Presse Locale (SEPL)
Dordogne Libre
Surf Session
Societe de Gratuit D’Information
SNEM
Societe du Journal Medi Libre
Recoletos Grupo de Comunicación S,A.
Pearson PCL
Gestevision Telecinco, S.A.
Estudios de Política Exterior S.A.
S.A.P.E.S.O., S.A.
0.000
Director
Sole Director
Director
Director
Director
Director
B.1.41. Indicate and detail if there is a procedure by which Directors may use external advice:
X
Yes
No
Detail of the procedure
The procedure is established in Articles 26.3 and 27 of the Rules for the Procedure of the Board, which is available in accordance with current
legislation.
B.1.42. Indicate and detail if there is a procedure by which Directors can have the information necessary for preparing the meetings of
administrative bodies with enough time:
X
Yes
No
Detail of the procedure
Article 20 of the Rules for the Procedure of the Board establishes that with enough advance time, Directors will be provided with the information that
will be discussed at the meeting of the Board, duly summarised and prepared.
In addition, Article 26 of the same Rules establishes the obligation for all Directors to collect as much information as needed for the proper carrying out
of their role, and must request it from the Chairman, the Chief Executive Officer or the Secretary.
152
B.1.43. Indicate and detail if the company has established rules which oblige Directors to report on and resign in cases where the
reputation of the company could be damaged:
X
Yes
No
Explain the rules
According to Article 24 of the Rules for the Procedure of the Board, must inform the board and resign in those cases which could damage the standing
and reputation of the company, and in particular:
a) when the reasons for their appointment disappear, when there is a circumstance in which the entity or business group represented by a Director no
longer have a significant shareholding in the share capital of the Company or reduces its holding to a level that requires the reduction of the number
of its representative Directors, or when independent Directors are no longer seen as such in accordance with the terms of the Rules.
b) when there are found to be infractions of the criteria for compatibility and non-prohibition that have been legally established.
c) when they are seriously warned by the Audit and Compliance Committee or by the Appointments and Remuneration Committee for breaking one
of their obligations as Director.
B.1.44. Indicate if a member of the Board of Directors has informed the company if has been tried or a trial will start against him for any
of the crimes indicated in article 124 of the Law on Corporations:
Yes
X
No
Indicate if the Board of Directors has analysed the case. If the response is affirmative, explains the decision taken as to whether the Director should
continue in the position.
B.2. COMMITTEES OF THE BOARD OF DIRECTORS.
See section G. OTHER INFORMATION OF INTEREST
B.2.1. Detail all the committees of the Board of Directors and their members
EXECUTIVE COMMITTEE
Name
Position
Type
Mrs. Soledad Luca de Tena García-conde
MEZOUNA, S.L. (represented by Mr. Ignacio Ybarra Aznar)
Mr. Emilio José de Palacios Caro
Chairman
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Secretary
Executive
External
External
Non Director
153
AUDIT COMMITTEE
Name
Position
Type
Mr. Álvaro de Ybarra Zubíria
Chairman
Member
Member
Secretary
Non Director
Name
Position
Type
MEZOUNA, S.L. (represented by Mr. Ignacio Ybarra Aznar)
Chairman
Member
Member
Member
Secretary
External
Non Director
APPOINTMENTS AND REMUNERATION COMMITTEE
B.2.2. Indicate if the Audit Committee has the following functions:
Monitoring the process of preparing accurate financial information for the company and for the group, reviewing compliance with the requirements,
the correct setting of the consolidation perimeter, and the correct application of accounting criteria.
X
Yes
No
Regularly reviewing the systems for internal control and risk management, so that the main risks are identified, managed and fully understood.
X
Yes
No
Ensuring the independence and effectiveness of the internal audit function; proposing the selection, appointment, reelection and dismissal of the head
of the internal audit service; proposing the budget for this service; receiving regular information on their activities; and verifying that senior
management considers the conclusions and recommendation sof its reports.
X
Yes
No
Establishing and supervising a mechanism which allows employees to report confidentially and if appropriate anonymously of potentially significant
irregularities, especially financial and accounting irregularities, detected at the company.
X
Yes
No
Bring to the Board proposals for the selection, appointment, reelection and substitution of the external auditor and the conditions of the contract.
X
Yes
No
Receive regularly from the external auditor information on the audit and its results, and verify that senior management consider its recommendations.
X
Yes
No
Ensure the independence of the external auditor.
X
Yes
No
For groups, aim for the group auditor to assume the responsibility for the audits of the companies which make up the group.
X
154
Yes
No
B.2.3. Describe the rules for the organisation and functioning, and the responsibilities attributed to them, of each of the committees of
the board.
Articles 16, 17, 18 and 19 of the Rules for the Procedure of the Board, (available on the web site of the company), contain the norms for the
organisation and functioning of the committees of the Board of Directors which are: Executive Committee, Audit and Compliance Committee, and the
Appointments and Remuneration Committee.
B.2.4. Indicate any powers for advice, consultative and action that each of the committees has.
Name of committee
Brief description
Executive Committee
Audit and Compliance Committee
Appointments and Remunerations Committee
See art. 17 of the Rules
B.2.5. Indicate the existence of any regulations for the board committees, the place where these can be consulted and the modifications
made in the year. Also indicate if on a voluntary basis any annual report has been made of the activities of each committee.
There are no specific regulations for Committees, as their regulation is contained, as indicated in section B.2.3, in the Rules for the Procedure of the
Board. This is available on the web site of the group, www.vocento.com.
The Audit and Compliance Committee has prepared an Annual Report on its activities, in accordance with article 18.8 of the Rules for the Procedure of
the Board and this is presented to the Board.
The Appointments and Remuneration Committee has prepared an annual report which is presented to the Board of Directors, and which includes a
summary of the activities carried out by the Committee in 2007.
B.2.6. Indicate whether the composition of the executive committee reflects the participation in the board of the various Directors in
function of their condition:
X
Yes
No
Yes but with slight variations.
Explain the composition of the executive committee:
Executive Director: 1 (9.09%).
External and Representative: 7 (63.64%).
External and Independent: 1 (9.09%).
Other External Directors: 2 (18.18%).
155
C. RELATED PARTIES
C.1. Indicate if the Board in full reserves the right to approve, after a favourable report from the Audit Committee or
any other committee granted this function, the transactions that the company carries out with Directors, significant
shareholders or their representatives on the Board, or with persons associated to them:
X
Yes
No
C.2. Detail the relevant transactions which represent a transfer of resources or obligations between the company or
group entities and the significant shareholders of the company:
of the significant shareholder
of the company or group entity
Nature of
relationship
Type of transaction
Amount
(thousand euros)
C.3. Detail the relevant transactions which represent a transfer of resources or obligations between the company or
group and company Directors or management.
of the Directors or managers
of company or group entity
Nature of
transaction
Type of transaction
Amount
(thousand euros)
VOCENTO, S.A.
Professional
Consulting services
37
C.4. Detail the relevant transactions made by the company with other companies belonging to the same group,
whenever these are not eliminated in the process of preparing consolidated financial accounts, and do not form part of
the ordinary business of the company in terms of their purpose and conditions:
Company name of group entity
Brief description of transaction
Amount (thousand euros)
Transactions between the company and other companies of the group have been eliminated in the consolidation process.
C.5. Indicate if members of the Board of Directors have been found in the course of the year to have a conflict of
interest in the terms of article 127 of the Law on Corporations.
X
156
Yes
No
Description of conflict of interest
Acquisition of Factoría de la Información, publisher of Qué!
C.6. Mechanisms, for detecting, determining and resolving possible conflicts of interest with the company and/or group,
and Directors, management or significant shareholders.
1. The procedure for the solution of conflicts of interest for people affected by the mentioned code, is governed by the Internal Code of Conduct in
Securities Markets of VOCENTO, S.A., specifically article 5.3 which establishes that when there is a situation which represents or potentially could
represent a conflict of interest, the person submitted to the Cod must immediately inform the Corporate Compliance Unit, making available as much
information as they request to evaluate the circumstances of the case before it is transferred to the Audit and Compliance Committee which will
adopt the appropriate measures.
2. The person submitted to the Code who is affected by a conflict of interest situation will abstain from participating or influencing directly or indirectly
the transaction, decision, or situation to which the conflict refers.
In addition, the Rules for the Procedure of the Board govern this situation for Directors and in particular Article 33.2 states that the Director must
inform the Board of any situation of a direct or indirect conflict of interest that he may have with the interest of the company, and this is then
evaluated by the Appointments and Remuneration Committee, which will determine whether the situation is compatible with the role of Director.
C.7. Is more than one company of the Group listed in Spain?
Yes
X
No
D. RISK CONTROL SYSTEMS
D.1. General description of the risk policies of the company and/or group, detailing and evaluating the risks covered by
the system, and the explanation of how these systems cover the profile of each type of risk.
In accordance with article 18.6 of the Rules for the Board of Directors of VOCENTO, “The policy for controlling and managing the risks of the company
will identify at least the various types of risks (operational, technological, financial, legal, reputational…) faced by the company, including in the
financial risks contingent liabilities and other off balance sheet risks; the establishment of the risk level deemed acceptable by the company; and
measures available to mitigate the impact of the identified risks if they were to materialise.”
VOCENTO has formally established a Risk Management System based on the COSO Report, with the following objective:
• To identify and evaluate the main risks which could endanger the goals of the Group, in order to reduce or mitigate these risks to an acceptable
level, establishing to this end the controls which are appropriate and proportionate for the significance and likelihood of each risk, in every
process.
The Risk Management System has the following phases:
a. Identification of the factors or events which could provoke the arrival of new risks or aggravate existing risks
b. Identification of the risks which affect VOCENTO.
To do this it uses the Universal Risks Model, which classifies risks into the following categories:
• Risks of the outside environment, based on external factors, which could provoke changes in the strategy and goals of the group.
• Risks in processes, operations, management, finances, integrity, reputation and technology.
• Information risks when making strategic, financial and operational decisions, in function of the impact they could have, if information is
incomplete, distorted or erroneous for making the associated decisions.
157
c. Classification of the risks in function of their importance.
The importance of the risks is defined by their impact and their likelihood.
• Impact: level of negative effect that the materialisation of the risk has on the results or continuity of the business.
• Likelihood: level of exposure and/or likelihood of the risk, regardless of whether the controls are sufficient and reduce the risk to acceptable levels.
d. Preparation of the Risks Map of VOCENTO
The combination of the impact and the probability of each risk results in the Risks Map, which is the basis for the system for risk management,
whose aim is to implement controls in the processes that are effective and proportionate to the importance of each risk and its likelihood, until
there is an acceptable level of risk (residual risk) for VOCENTO.
The Management Committee of VOCENTO is responsible for the annual evaluation of risks and for setting the acceptable level of risk. Internal audit
collaborates and provides support and methodology, but is not responsible for this and does not make decisions about the level of exposure to risks.
e. Localising risks in processes: Internal Audit Plan
The location of risks in those processes where they can be mitigated, using the risks/processes map of VOCENTO, leads to the Annual Plan of
Internal Audit, which is approved by the Audit and Compliance Committee.
Internal Audit reviews and evaluates the design and operation of the controls established in the processes included in the Audit Plan, checking the
sufficiency of the coverage of risks with existing controls.
f. Response to risks: if risks are covered which are not reasonably covered by the system, the corresponding recommendations will be made to the
heads of the processes and the General Management of the companies of the group, in order to implement the appropriate controls for
reducing or mitigating the impact of these risks, by actions, policies and control procedures.
g. Information and Communication: Internal Audit regularly informs the Management Committee and the Audit and Compliance Committee
of the results of its reviews, of its conclusions, of the recommendations made, and of its level of implementation.
h. Supervision: the supervising body of the Risks Management System is the Audit and Compliance Committee.
D.2. Indicate if in the year any of the various types of risks (operational, technological, financial, legal, reputational,
fiscal…) that affect the company and/or group have materialised:
Yes
X
No
D.3. Indicate if there is a committee or another governance body which is in charge of establishing and supervising
these control arrangements and detail its functions:
X
Yes
No
If so, detail its functions.
158
Name of the Committee or body
Description of functions
Audit and Compliance Committee
Articles 18.3, 18.4 and 18.5 of the Rules for the Board of Directors state that the Audit and Compliance
Committee is in charge of establishing and supervising these control mechanisms. These articles also indicate
the functions granted to this body in the articles of the Rules for the Board of Directors which are available on
the company web site: www.vocento.com.
D.4. Identification and description of the processes for compliance with the various regulations that affect the company
and /or group.
Article 15 of the Rules for the Board of Directors, concerning the Secretary of the Board, establishes the obligation of the Secretary of the Board to
ensue the formal and material legality of the actions of the Board and guarantee that its procedures and governance rules are respected and regularly
reviewed.
Article 18.4, section 3, of the Rules of the Board of Directors of VOCENTO, state that it will be the Audit and Compliance Committee which is
responsible for reviewing compliance with the internal codes of conduct and with corporate governance rules.
Finally, VOCENTO has established a body for supervising compliance, reporting to the Audit and Compliance Committee, named the Corporate
Compliance Unit, which is managed and composed of the Secretary of the Board of Directors.
E. GENERAL SHAREHOLDER MEETING
E.1. Indicate and detail any differences with the minimum quorum regime of the Law on Corporations in terms of the
quorum for a Shareholder Meeting
Yes
X
No
E.2. Indicate and detail any differences with the regime of the Law on Corporations for the adoption of agreements:
Yes
X
No
E.3. Describe the rights of shareholders at general shareholder meetings, and how they differ from those established by
the Law on Corporations.
The rights of shareholders do not differ from those established in the Law on Corporations. However, there are some peculiarities in terms of the rights
for attendance which are detailed in section E.9 of this report, and for shareholder rights which are established in article 9 of the Rules for the General
Shareholder Meeting, which includes the possibility of receiving the information for the Meetings electronically on the web page of the company
before the Meeting, and the possibility of obtaining the information and participating in the Meeting itself, in accordance with article 17 of the Rules
for the General Shareholder Meeting.
E.4. Indicate any measures adopted to encourage the participation of shareholders in general shareholder meetings.
The Rules for the General Shareholder Meeting establish measures for guaranteeing the participation of shareholders at the meeting; specifically
articles 16.3., 16.4 and 16.5 of the Rules for the General Shareholder Meeting organise and ensure shareholder participations at the meeting, while art.
18.6 includes the possibility of aggregating votes with financial brokers acting for various clients. These Rules are available at the company website:
www.vocento.com.
159
E.5. Indicate if the role of Chairman of the shareholder meeting coincides with the role of Chairman of the Board of
Directors. Detail any measures adopted to guarantee the independence and good functioning of the general
shareholder meeting:
X
Yes
No
Detail the measures
All the measures established in the Rules for the General Shareholder Meeting, specifically those related with rights to information (articles 9 and 17)
and the publications on the web site, guarantee the independence of those attending the meeting, and the measures for participation and consultation
established by the Rules (Article 16) and the powers of the Chairman on directing the meeting (Article 14.4) protect the good functioning of the
general shareholder meeting.
In addition, article 14.1 guarantees the exercise of the function of Chairman when he is absent, and establishes the procedure for solving the absence
of the Chairman by a system of priority.
E.6. Indicate any modifications made in the year to the Rules for the General Shareholder Meeting.
The Rules for the General Shareholder Meeting were approved on 5 September 2006 and underwent no changes in 2007.
E.7. Indicate attendance data for the general shareholder meetings held in the year covered by this current report:
Attendance data
% distance vote
Date of meeting
% physical attendance
% represented
Electronic vote
Others
Total
57.645
17.590
0
0
75.235
25-04-2007
In the percentages allocated, treasury stock has not been included.
E.8. Briefly indicate the agreements adopted at the general meetings held in the year covered by the current report and
the percentage of votes which approved them.
The following were agreed:
1. To approve the individual and consolidated Annual Accounts, the management report, the proposed application of results, the distribution of the
dividend and the management of the Board of Directors, all corresponding to 2006.
2. Determination of the number of Directors and ratification of the Director appointed by co-opting, Belarmino García Fernández.
3. Appointment of the company DELOITTE, S.L., as auditors of the accounts of the company and of the consolidated group for 2007.
4. To authorise the Company to acquire treasury stock, directly or via Group companies, in accordance with Article 75 of the Revised Text of the Law on
Corporations, establishing limits and requirements to these acquisitions.
5. Delegate powers to jointly execute the agreements to the Chairman, ViceChairman, the Chief Executive Officer and the Secretary.
160
E.9. Indicate the number of shares needed to attend the General Shareholder Meeting and if there any statutory
restrictions in place:
X
Yes
No
Number of shares needed to attend the Shareholder Meeting: 50
E.10. Indicate and explain the policies followed by the company for delegating votes in the general shareholder
meeting.
The proxy must be awarded to another company shareholder and by writing using any medium which guarantees the identity of the shareholder, for
each of the meetings, and it must contain attached the order of the day, with the indication of instructions for exercising the voting right and the vote
to be made.
Delegation may only be awarded to one person.
The proxy can always be revoked; personal attendance at the Shareholder Meeting of the party represented or the exercise of the vote by distance will
be considered as revoking the proxy.
E.11. Indicate if the company is aware of the policy of institutional investors to participate or not in company decisions.
Yes
X
No
Describe the policy:
E.12. Indicate the address and access to corporate governance material on your web site.
All information concerning Corporate Governance may be found on the web site:: www.vocento.com, in the section “Information for shareholders and
investors,” and then in “Corporate Governance”.
F. LEVEL OF IMPLEMENTATION OF CORPORATE GOVERNANCE RECOMMENDATIONS
Indicate the level to which the company follows the recommendations of the Unified Code of good governance.
If one of them is not complied with, explain the recommendations, norms, practices or criteria which the company applies.
1. That the statutes of listed companies should not limit the maximum number of votes that one single shareholder can cast, or contain
other restrictions which make it hard to take control of the company by buying shares in the market.
See items: A.9, B.1.22, B.1.23 and E.1, E.2.
X
Compliant
Explain
161
2. That when the parent company and a dependent company are listed, both publicly and accurately define:
a. The respective areas of business and any business relationship between them, and those of the dependent listed company with
other group companies;
b. Mechanisms for resolving any conflicts of interests which could arise.
See items: C.4 and C.7
Compliant
Partly compliant
Explain
X
Not applicable
3. That, although not expressly required by company law, the General Shareholder Meetings approve operations which lead to a
structural modification of the company, in particular the following:
a. The transformation of listed companies into holding companies, by incorporating activities that were essentially carried out until
then by the company into subsidiary companies, even though the company continues to control those companies;;
b. The acquisition or sale of essential operating assets, when this entails an effective change in the company’s business;
c. Operations whose effect will be the liquidation of the company.
Compliant
X
Partly compliant
Explain
Item a) is not complied with, as in reality it is not applicable as the company was already a holding company when it first listed, carrying out its business
by holding stakes in the companies which make up the group.
4. That the detailed proposals for agreements to be adopted at the General Shareholder Meeting, including information referred to by
recommendation 28, are made public when the call to attend the Meeting is made.
X
Compliant
Explain
5. That at the General Shareholder Meeting substantially independent matters are voted on separately, so that shareholders may
exercise their voting preferences separately, and that this rule is applied, in particular::
a. To the appointment or ratification of Directors, who should be voted on individually:
b. For modifications of Statutes, for each article or group of articles that are substantially independent.
See item: E.8
X
Compliant
Partly compliant
Explain
6. That companies allow votes to be aggregated by financial intermediaries who appear as legitimate shareholders, but act for various
clients, and can vote in accordance with the instructions of those shareholders.
See item: E.4
X
162
Compliant
Explain
7. That the Board carries out its functions with unity of purpose and independently, treats all shareholders equally and is guided by the
interest of the company, understood as sustainably maximising the value of the company.
And that in its relations with stakeholders the company respects laws and regulations, complies with its obligations and contracts in
good faith, respects the uses and good practices of the sectors and regions where it operates, and observes those principles of social
responsibility that it has voluntarily accepted.
X
Compliant
Partly compliant
Explain
8. That the Board assumes as the core of its mission to approve the strategy of the company and the organisation needed to put this into
practice, and also to monitor and ensure that management complies with the goals set and respects the company’s purpose. And, to
this end, that the Board in full reserves the right to approve:
a. The general policies and strategies of the company, in particular::
i) The strategic plan or business plan, with management goals and annual budgets;
ii) Policies for investment and financing;
iii) The definition of the structure of the group of companies;
iv) Corporate governance policy;
v) Social corporate responsibilty policy;
vi) The remuneration policy and the evaluation of the performance of senior management;
vii) The policy for risk control and management, and the regular monitoring of internal information and control systems;.
viii) Dividend policy and treasury stock policy and limitations to this in particular.
See items: B.1.10, B.1.13, B.1.14 and D.3
b. The following decisions:
i) On the proposal of the chief executive of the company, to appoint and dismiss senior management, and their compensation
clauses.
See item: B.1.14.
ii) The remuneration of Directors and, for executive Directors, their additional remuneration for executive functions, and other
conditions that their contracts should respect.
See item: B.1.14.
iii) The financial information which, as a listed company, the company has to publish regularly.
iv) Investments and operations of any type which, because of the high amount involved or special characteristics, have a strategic
character, unless their approval corresponds to the General Shareholder Meeting.
v) The creation or acquisition of holdings in special purpose vehicles or entities established in countries or territories considered to
be tax havens, and any other transactions or operations of a similar nature, which, because of their complexity, could diminish
the transparency of the group.
c. Transactions between the company and significant shareholders or shareholders with representation on the Board, or with
persons associated to them (“transactions with related parties”).
This authorization of the Board will not be needed however for those related party transactions which simultaneously comply
with the three following conditions:
1. That contracts are used which are standardised and applied in mass to many clients;
2. That they are made at generally established prices or rates by the supplier of the goods or services in question;
3. That the amount does not represent over 1% of the annual revenues of the company.
163
It is recommended that the competences attributed to the Board here cannot be delegated, except for those mentioned in letters
b) and c), which can be adopted for reasons of urgency by the Executive Committee, and then ratified by the Board in full.
See items: C.1 and C.6
X
Compliant
Partly compliant
Explain
9. That the Board has the right size for ensuring its effective and participatory functioning, which means that it is recommended that it
has no less than five and no more more than fifteen members.
See item: B.1.1
Compliant
X
Explain
Because of the presence of 10 representative Directors, the number of 16, one more than the maximum indicated in the corporate governance
recommendations, is deemed to be the most appropriate.
10. That external representative Directors and independent Directors represent an ample majority of the board, and that the number of
executive Directors is the minimum necessary, based on the complexity of the group and the participation of executive Directors in
the company’s share capital.
See items: A.2, A.3, B.1.3 and B.1.14.
X
Compliant
Partly compliant
Explain
11. That if there is any external Director who cannot be considered as either a representative Director an independent, the company
explains this circumstance and his connections to the company, or to its Directors, or to its shareholders.
See item: B.1.3
X
Compliant
Explain
Not applicable
12. That of the external Directors, the relationship between the number of representative Directors and of independent Directors reflects
the proportion in the share capital of the company represented by representative Directors and the rest of the capital.
This strict criterion for proportionality may be relaxed so that the weight of the representative Directors is higher than that which
corresponds to the percentage of share capital they represent:
1. In companies with large capitalisation, in which there are few or no shareholder stakes which legally must be considered as
significant, bit there are shareholders with stakes of a high absolute value.
2. For companies where many shareholders are represented on the Board and there are no links between them.
See items: B.1.3, A.2 and A.3
X
Compliant
Explain
13. That the number of independent Directors represents at least one third of the total of Directors.
See item: B.1.3
Compliant
X
Explain
Given the high share ownership of representative Directors, without there being a relationship between them, the number of existing independent
Directors has been deemed to be enough.
164
14. That the nature of each Director is explained by the Board to the General Shareholder Meeting which should ratify the appointment
and confirm it, or be reviewed annually in the Annual Corporate Governance Report after verification by the Appointments
Committee. This report should also explain the reasons for the appointment of representative Directors for shareholders whose stake
is under 5% of capital, and explain the reasons why formal requests for presence on the board from shareholders with an equal or
higher stake than others who have representative Directors are turned down.
See items: B.1.3 and B.1.4
Compliant
X
Partly compliant
Explain
Two Directors currently have a stake of under 5%, but at the time of their initial appointment they represented that stake. With no formal request for
presence on the board being received from shareholders with an equal or higher stake than those currently with board presence, without detriment to
RD 1362/2007, of 19 October, the level for a significant stake has been set at 3%.
15. That when the number of female Directors is low or zero, the Board will explain the reasons for this and the initiatives adopted to
correct this situation, and that in particular the Appointments Committee will ensure that when there are new vacancies:
a. The selection procedures do not suffer from the implicit bias that are an obstacle to selecting women;
b. The company deliberately looks for women with the right professional profile and includes them as potential candidates.
See items: B.1.2, B.1.27 and B.2.3.
Compliant
Partly compliant
Explain
X
Not applicable
16. That the Chairman, being responsible for the efficient functioning of the Board, ensures that Directors receive in advance sufficient
information, stimulates debate and the active participation of Directors in the meetings of the Board, safeguarding the free adoption
of positions and expressions of opinion, and organises and coordinates with the chairmen of the relevant Committees the regular
evaluation of the Board and of the Chief Executive Officer.
See item: B.1 42
Compliant
X
Partly compliant
Explain
It has been proposed that the regular evaluation of the Board and of the Chief Executive Officer will be carried out with more depth next year.
17. That when the Chairman of the Board is also the Chief Executive Officer, an independent Director is delegated to call the meeting of
the Board or to include new points in the order of the day, to coordinate and relay the concerns of external Directors, and to manage
the evaluation by the Board of the Chairman.
See item: B.1.21
Compliant
Partly compliant
Explain
X
Not applicable
18. That the Secretary of the Board takes special care to ensure that the actions of the Board:
a. Are in accordance with the letter and the spirit of the Laws and regulations, including those approved by regulatory authorities;
b. Are in accordance with company statute and with the Rules for the Shareholder Meeting, Rules for the Board, and others;
c. Reflect the good governance recommendations contained in this Unified Code that the company has accepted.
165
And that, to safeguard the independence, impartiality and professionalism of the Secretary, his appointment and dismissal are reported
by the Appointments Committee and approved by the Board in full, and that this procedure for appointment and dismissal is stated in
the Rules for the Procedure of the Board.
See item: B.1.34
X
Compliant
Partly compliant
Explain
19. That the Board meets frequently enough to perform its functions with effectiveness, following the programme of dates and business
established at the start of the year, with each Director being able to propose orders of the day that were initially not included.
See item: B.1.29
X
Compliant
Partly compliant
Explain
20. That Directors are absent only when essential, and these are listed in the Annual Report on Corporate Governance. And that if
representation is indispensable, it is granted with instructions.
X
Compliant
Partly compliant
Explain
21. That when Directors or the Secretary express concern on a proposal or, for Directors, on the performance of the company, and these
concerns are not resolved by the Board, at the request of the person who expressed them they are noted in the minutes.
X
Compliant
Partly compliant
Explain
Not applicable
22. That the Board in full evaluates once a year:
a. The quality and efficiency of the functioning of the Board;
b. Based on the report presented to it by the Appointments Committee, the performance of the Chairman of the Board and of the
Chief Executive Officer of the Company.
c. The functioning of the Committees, based on the report presented to it by these.
See item: B.1.19
Compliant
X
Partly compliant
Explain
For sections a) and b), given the recent listing of the company, the evaluation system is in the process of being implemented.
23. That all the Directors have the right to receive the additional information they think needed about business which is the competence
of the Board. And that, unless the Statutes or Rules for the Procedure of the Board.
See item: B.1.42
X
166
Compliant
Explain
24. That all Directors have the right to obtain from the company the advice needed to carry out their functions. And that the company
provides the adequate channels for exercising this right, which in special circumstances could include external advice paid by the
company.
See item: B.1.41
X
Compliant
Explain
25. That the companies establish a programme for orienting new Directors which gives them a rapid and adequate understanding of the
company, and of its corporate governance rules. And that they provide Directors with programmes for updating their knowledge
when circumstances so advise.
Compliant
Partly compliant
X
Explain
As the only incorporation to the Board of Directors has been the Chief Executive Officer, it has not been deemed necessary to establish the
programmes, as the Directors know the company and its corporate governance rules well enough.
26. That the companies require Directors to dedicate to their function the time and effort needed to carry it out with effectiveness, and
consequently:
a. That Directors inform the Appointments Committee of their other professional obligations, if they could interfere with the
required dedication;
b. That the companies establish rules on the number of boards that Directors may form part of.
See items: B.1.8, B.1.9 and B.1.17
X
Compliant
Partly compliant
Explain
27. That the proposal for appointing or re-electing Directors which is made by the Board to the General Shareholder Meeting, and
provisional appointments by co-opting, are approved by the Board:
a. On the proposal of the Appointments Committee, for independent Directors.
b. After a report from the Appointments Committee, for the other Directors.
See item: B.1.2
X
Compliant
Partly compliant
Explain
28. That the companies publish on their website and keep updated the following information on their Directors:
a. Professional profile and biography;
b. Other boards of Directors to which they belong, whether these are listed companies or not;
c. An indication of the corresponding class of Director, indicating, for representative Directors, the shareholder they represent or are
associated with.
d. The date of the first appointment as a Director of the company, and subsequent appointments, and;
e. Company shares and share options owned by them.
X
Compliant
Partly compliant
Explain
167
29. That independent Directors do not remain independent for more than a continuous period of 12 years.
See item: B.1.2
X
Compliant
Explain
It has been interpreted that this period begins for all Directors who were Company Directors at the date of listing on the Stock Market.
30. That representative Directors resign when the shareholder they represent fully sells their stake. And that the number of these
Directors falls, when the shareholder cuts the stake, to a level which requires the reduction in the number of representative Directors.
See items: A.2, A.3 and B.1.2
X
Compliant
Partly compliant
Explain
31. That the Board of Directors does not propose the dismissal of any independent Director before the ending of the statutory period for
which he or she has been appointed, except when there is a just cause for this, noted by the Board after a report from the
Appointments Committee. In particular, just cause will be deemed to exist when the Director has not complied with the duties
inherent in the role, or is implicated in the circumstances described in item 5 of section III of the definitions of this Code.
The dismissal of independent Directors may also be proposed after public takeover bids, mergers, or other similar operations which
represent a change in the share capital structure of the company, when these changes in the structure of the Board reflect the criteria
of proportionality indicated in Recommendation 12.
See items: B.1.2, B.1.5 and B.1.26
X
Compliant
Explain
32. That companies establish rules which oblige Directors to inform and if applicable resign in those circumstances which could damage
the credit and reputation of the company, and in particular, require Directors to inform the Board of the penal cases where they are
implicated and of the results of any legal processes.
That if a Director is tried or committed to trial for one of the crimes noted in Article 124 of the Law on Corporations, the Board will
examine the case as soon as possible and in light of the specific circumstances decide if the Director may continue in the position.
And that for all this the Board relies to a reasonable degree on the Annual Corporate Governance Report.
See items: B.1.43, B.1.44
X
Compliant
Partly compliant
Explain
33. That all Directors clearly express their opposition when they think that any proposal for a decision submitted to the may be contrary
to the company’s interests. And that, particularly independent Directors and Directors not affected by the potential conflict of
interest, this is also the case concerning decisions which could damage shareholders who are not represented on the Board.
And that when the Board adopts significant or repeated decisions on which the Director has expresses reservations, the Director
draws the necessary conclusions and if he chooses to resign, explains the reasons for this in the letter referred to by the following
recommendation.
This Recommendation also covers the Secretary of the Board, even though the Secretary may not be a Director.
Compliant
168
Partly compliant
Explain
X
Not applicable
34. That when, either because of resignation or for another reason, when a Director leaves his role before the end of the mandate, he
explains the reasons in a letter sent to all members of the Board. And that, while this will still be stated as a relevant fact, the reason
for the departure is also noted in the annual corporate governance report.
See item: B.1.5
Compliant
Partly compliant
Explain
X
Not applicable
35. That the remunerations policy approved by the Board covers as a minimum the following questions:
a. The amount of the fixed part, breaking down any allowances for participation in the Board and its Committees, and an estimate
of the annual fixed remuneration based on this;
b. Variable remuneration concepts, including in particular:
i) The classes of Directors to whom they apply, and an explanation of the relative size of the variable remuneration compared
to the fixed remuneration.
ii) Criteria for evaluating results, on which are based any rights to remuneration in shares, share options, or any variable
component;
iii) Fundamental parameters for any annual bonus system or for other non-cash benefits; and
iv) An estimate of the absolute amount of variable remuneration based on the proposed plan, depending on the degree of
meeting the targets that are set as a reference.
c. Main characteristics of welfare payments (for example, complementary pensions, life insurance, and similar), with an estimate of
the amount or annual equivalent cost.
d. Conditions which must be respected in the contracts for executive Directors with senior management functions, including:
i) Duration;
ii) Notice periods; and
iii) Any other clauses for joining bonuses, and for compensation or protection against early termination of the contract between
the company and the executive Director.
See item: B.1.15
X
Compliant
Partly compliant
Explain
36. That variable remuneration by the award of company shares or shares in group companies, options on shares or instruments linked
to the share price, and variable remuneration associated with the performance of the company is limited to executive Directors.
This recommendation will not cover the award of shares when this is conditioned to the Directors holding them until they leave their
positions as Director.
See items: A.3, B.1.3
X
Compliant
Explain
37. That the remuneration of external Directors is enough to reward the dedication, qualification and responsibility demanded by the
role, but not so high as to compromise their independence.
X
Compliant
Explain
169
38. That remuneration related to the results of the company considers any qualifications in the report of the external auditor which
reduces these results.
X
Compliant
Explain
Not applicable
39. That for variable remuneration, the policies incorporate the technical measures needed to ensure that this remuneration is related to
the professional performance of beneficiaries, and is not simply based on the general performance of the markets or of the sector of
the company, or other similar circumstances.
X
Compliant
Explain
Not applicable
40. That the Board submits to the voting of the General Shareholder Meeting as a separate point of the day, a report on the
remuneration policy for Directors. And that this report is made available to shareholders, either separately or in any other way that
the company considers appropriate.
This report will focus in particular on the remuneration policy approved by the Board for the year underway, and for future years if
applicable. It will address all the questions referred to by Recommendation 35, except when this could lead to the disclosure of
sensitive commercial information. It will highlight the most significant changes to the policies applied in the previous year, which is
addressed by the General Shareholder Meeting. It will also include a general summary of how the remuneration policy was applied
in this previous year.
That the Board also reports on the role carried out by the Remuneration Committee in establishing the remuneration policy, and if
external advice has been used, the identity of the external consultants used.
See item: B.1.16
Compliant
X
Partly compliant
Explain
The information on the annual remuneration policy of the Board of Directors, is incorporated in the annual report that is the subject of the approval of
General Shareholder Meeting, and not as a separate point of the day to be consulted on (CE Recommendation of 14 December 2004).
41. That the Annual Report details the individual remuneration of Directors in the year, including:
a. The individualised breakdown of the remuneration of each Director, including, if any:
i)
ii)
iii)
iv)
Allowances for attendance or other fixed remuneration as a Director;
Additional remuneration for the Chairman or for being a member of a Board committee;
Any remuneration in the form of profit sharing or bonuses, and the reason for their award;
Contributions made to the benefit of the Director to defined contribution pension plans, or the increase in the rights of the
Director in terms of contributions to defined benefit plans;
v) Any compensation agreed or paid in the event of the termination of the Director’s functions;
vi) Remuneration received as a Director of other group companies;
vii) Remuneration to executive Directors for carrying out senior management roles;
viii) Any other concept of remuneration different to these, whatever their character or the group company which pays them,
especially when they are considered to be a related party transaction, or when their absence distorts the true picture of the
total remuneration received by the Director.
b. The individual breakdown of any award to Directors of shares, share options, or other instruments linked to the share price,
detailing:
i) The number of shares or options granted in the year, and conditions for their exercise;
ii) The number of share options exercised in the year, with an indication of the number of shares affected and the strike price;
iii) The number of options pending exercise at the end of the year, with an indication of their price, date and other requirements
for exercise;
iv) Any modification made in the year to the conditions of the exercise of already awarded share options.
170
c. Information on the relationship in the past year between the remuneration obtained by the Directors and the results or other
returns reported by the company.
X
Compliant
Partly compliant
Explain
42. That when there is an Executive Committee, the structure of participation of the different types of Directors is similar to the structure
of the Board, and the Secretary is the Secretary of the Board.
Compliant
X
Partly compliant
Explain
Not applicable
See section G. OTHER INFORMATION OF INTEREST
43. That the Board is always aware of the business treated and the decisions adopted by the Executive Committee, and that all members
of the Board receive a copy of the minutes of the meetings of the Executive Committee.
X
Compliant
Explain
Not applicable
44. That the Board of Directors establishes in addition to the Audit Committee required by the Law on Securities Markets, a Committee,
or two separate Committees, for Appointments and Remunerations.
That the rules for the composition and functioning of the Audit Committee and of the Committee or Committees of Appointments
and Remuneration are included in the Rules for the Procedure of the Board, and include the following:
a. That the Board appoints the members of these Committees, based on the knowledge, abilities and experience of the Directors and
the scope of each Committee; that it considers their proposals and reforms; and in the first Board meeting after their meetings,
they must report their activity and work carried out;
b. That these Committees are exclusively composed of external Directors, with a minimum of three. This does not prevent the
attendance of executive Directors or senior management, when members of the Committee expressly agree on this.
c. That their Chairmen are Independent Directors.
d. That they can receive external advice, when they deem it necessary for carrying out their functions.
e. That minutes are taken of their meetings, which are sent to all members of the Board.
Compliant
X
Partly compliant
Explain
The Chairman of the Appointments and Remuneration Committee is required to be external, but it is no required that he must also be independent.
45. That the supervision of compliance with the internal codes of conduct and rules of corporate governance are allocated to the Audit
Committee, or, if they are separate, to the Compliance or Corporate Governance Committee.
X
Compliant
Explain
46. That members of the Audit Committee and in particular the Chairman are appointed based on their knowledge and experience in the
area of accounting, audit, or risk management.
X
Compliant
Explain
171
47. That listed companies have an internal audit function which, under the supervision of the Audit Committee, monitors the good
performance of the information systems and internal control systems.
X
Compliant
Explain
48. That the person in charge of the internal audit function presents the Audit Committee with an annual work programme, directly
informs it of any incidents that occur during this, and submits to it at the end of each year a report on his activities.
X
Compliant
Partly compliant
Explain
49. That the policy for controlling and managing risks identifies at least:
a. The various types of risks (operational, technological, financial, legal, reputational…) faced by the company, including in the
financial risks contingent liabilities and other off balance sheet risks;
b. The establishment of the risk level deemed acceptable by the company;
c. And measures available to mitigate the impact of the identified risks if they were to materialise;
d. The information systems and internal control systems used to control and manage these risks, including contingent liabilities and
off balance sheet risks.
See item: D
X
Compliant
Partly compliant
Explain
50. That it corresponds to the Audit Committee:
1. Concerning information technology and internal control systems:
a. To supervise the process of preparing accurate financial information, reviewing compliance with requirements, the appropriate
setting of the consolidation perimeter, and the correct application of accounting criteria.
b. Regularly review internal control and risk management systems, so that the main risks are identified, managed, and made
aware of adequately.
c. Ensure the independence and effectiveness of the internal audit function; propose the selection, appointment, reelection and
dismissal of the person responsible for internal audit; propose the budget for the service; receive regular information on its
activities, and verify that senior management consider the conclusions and recommendations of its reports.
d. Establishing and supervising a mechanism which allows employees to report confidentially and if appropriate anonymously of
potentially significant irregularities, especially financial and accounting irregularities, detected at the company.
2. Concerning the external auditor:
a. Bring to the Board proposals for the selection, appointment, reelection and substitution of the external auditor and the
conditions of the contract.
b. Receive regularly from the external auditor information on the audit and its results, and verify that senior management
consider its recommendations.
172
c. Ensure the independence of the external auditor, and to this end:
i) That the company informs the CNMV as a relevant fact any change of auditor and accompanies it with a declaration on
the existence of any disagreements with the outgoing auditor, and if applicable, the content of these;
ii) That it is ensured that the company and the auditor respect prevailing norms on the delivery of services other than audits,
the limits for the concentration of the auditor’s business, and in general, the other norms established to ensure the
independence of auditors;
iii) That if the external auditor resigns, the circumstances motivating this are examined.
d. For groups, aim for the group auditor to assume the responsibility of the audits of the companies which compose the group.
See items: B.1.35, B.2.2, B.2.3 and D.3
Compliant
X
Partly compliant
Explain
Concerning section 1d), given the recent listing of the company, it is in the process of implementing the communication system.
Concerning section 2d), the Audit and Compliance Committee considered if it was appropriate for the external auditor of the group, Deloitte, to
assume the responsibility for the audiovisual segment, audited by KPMG, but it concluded that the additional work implied by this should not be carried
out, for two reasons: firsly because of the minimum risk, as Deloitte audited the segment until the previous year, and secondly because KPMG is a firm
with recognised professional solvency. Hence an additional expenses was not justified. Deloitte in addition does not assume responsibility for the
auditing in 2007 of the company Factoría de la Información, S.L. (the publisher of the free daily Que!) which was also audited by KPMG, which was the
legal auditor of the company when it was acquired in 2007.
51. That the Audit Committee can call any employee or manager of the company and require them to appear without the presence of
any other manager.
X
Compliant
Explain
52. That the Audit Committee informs the Board, prior to its adoption of corresponding decisions, on the following matters indicated in
Recommendation 8:
a. The financial information that as a listed company the company must regularly publish. The Committee must ensure that interim
accounts are formulated using the same accounting criteria as annual accounts, and to this end consider whether it is appropriate
to have a limited review by the external auditor.
b. The creation or acquisition of holdings in special purpose vehicles or entities established in countries or territories considered to be
tax havens, and any other transactions or operations of a similar nature, which, because of their complexity, could diminish the
transparency of the group.
c. Transactions with related parties, unless the function for providing a report has been awarded to a different Committee than a
supervisory committee.
X
Compliant
Partly compliant
Explain
53. That the Board of Directors aims to present accounts to the General Shareholder Meeting which do not have reservations or
qualifications in the audit report, and in the exceptional circumstances when these occur, both the Chairman of the Audit Committee
and the auditors shall clearly explain to shareholders the content and scope of these reservations or qualifications.
See item: B.1.38
X
Compliant
Partly compliant
Explain
173
54. That the majority of members of the Appointments Committee, or the Appointments and Remuneration Committee if it is just one,
are independent Directors.
See item: B.2.1
Compliant
X
Explain
Not applicable
The Rules for the Procedure of the Board only require the members of this committee to be external, and do not require them also to be independent.
55. That the appointments committee, in addition to the functions indicated in the previous Recommendations, has the following
functions:
a. Evaluating the competences, knowledge and experience necessary for the Board, hence defining the functions and skills needed
for candidates to fill any vacancies, and evaluating the time and dedication needed to be able to perform the role well.
b. Examine or organise in an adequate way the succession to the Chair and the chief executive, and make proposals to the Board for
an orderly and well planned succession.
c. Report on the appointments and dismissals proposed by the chief executive to the Board.
d. Report to the Board on the questions of gender diversity indicated in Recommendation 14 of this Code.
See item: B.2.3
X
Compliant
Partly compliant
Explain
Not applicable
56. That the Appointments Committee consults the Chairman and the chief executive of the company, especially for matters concerning
the executive Directors.
And that any Director may request the Appointments Committee to take into consideration, if he deems them ideal, potential
candidates for Director vacancies.
X
Compliant
Partly compliant
Explain
Not applicable
57. That the Remuneration Committee has, in addition to the functions indicated in the preceding Recommendations, the following
tasks:
a. Proposing to the Board of Directors:
i) The remuneration policy for Directors and senior management;
ii) The individual remuneration of the executive Directors and other conditions in their contracts.
iii) The basic conditions of the contracts of senior management.
b. Monitoring the observance of the remuneration policy established by the company.
See items: B.1.14, B.2.3
X
Compliant
Partly compliant
Explain
Not applicable
58. That the Remuneration Committee consults the Chairman and the chief executive of the company, especially for matters relating to
executive Directors and senior management.
X
174
Compliant
Explain
Not applicable
G. OTHER INFORMATION OF INTEREST
Now mention and explain any relevant principle or aspect concerning the corporate governance practices applied by the company which have not been
covered by the current report.
This section can include any other information, clarification or explanation related to the previous sections of the report.
In particular, indicate if the company is subject to different legislation than Spanish legislation in the area of corporate governance, and if so include the
information that msut be provided and which is different to the requirements of the current report.
The Board of Directors approved the creation of an Editorial Committee, composed of Enrique Ybarra e Ybarra as Chairman, José María Bergareche
Busquet as member and Soledad Luca de Tena García Conde as member and Secretary. This committee aims to advise the Board of Directors on
editorial issues affecting all the media of the group.
Concerning the Board of Directors, it should be noted that on 28 January 2008 Belarmino García Fernández submitted his resignation as Chief
Executive Officer and Director of VOCENTO, S.A., and that José Manuel Vargas Gómez was appointed new Chief Executive Officer.
The Board of Directors in its meeting on 30 January 2008 restructured the composition of the Executive Committee, which is now as follows:
• Chairman: Mr. Diego del Alcázar Silvela.
• Chief Executive Officer: Mr. José Manuel Vargas Gómez.
• Directors: Mr. Santiago Bergareche Busquet.
Mrs. Doña Soledad Luca de Tena García Conde.
Mr. Víctor Urrutia Vallejo.
Mr. Álvaro Ybarra Zubiría.
Mezouna, S.L. represented by Mr. Ignacio Ybarra Aznar.
The Management Committee was also restructured and is now composed of, in addition to the Chief Executive Officer, José Manuel Vargas Gómez,
the following members:
• Doña Beatriz Puente Ferreras.
• Mr. Iñaki Arechabaleta Torróntegui.
• Mr. Santiago Alonso Paniagua.
It should be noted that in the data concerning senior management who are not also executive Directors, that of the list in section B.1.12, except for
José Manuel Vargas, Iñaki Arechabaleta and Enrique Marzal, Beatriz Puente entered the list on 20 November 2007, María José Villarubia Castelero on
15 November 2007, and Miguel Abellán Andrés on 3 December 2007.
The following left the Management Committee in the course of 2007: Juan Ignacio Mijangos Ugarte, Víctor Viguri Flores, Ángel Arnedo Gil, Fernando
Samaniego Ruiz de Infante and Ángel Doménech Linde.
As a result, including all of these people, the remuneration received by persons who in the course of 2007 have been members of Senior Management,
and in the period that they have been members, totals 3,898 thousand euros.
175
Binding definition of Independent Director:
Indicate if any independent Director has or had a relationship with the company, its significant shareholders or management which, if it was significant
enough or large enough, would have determined that the Director could not be considered as independent, in accordance with the definition included
in section 5 of the Unified Code on good governance:
Yes
X
No
This Annual Report on Corporate Governance was unanimously approved by the Board of Directors of the company in its meeting of 28 February 2008.
Indicate if there have been Directors who have voted against the approval of the current report or who have abstained.
Yes
176
X
No

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02 Consolidated financial - 2010 -