Good day and thank you for standing by and welcome to the Mediaset España third quarter 2021 results presentation conference call. Currently, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star and one on your telephone. Please be advised that today's conference is being recorded today, and I would like to hand the conference now to your first speaker today, Mr. Mario Sacedo. Please go ahead, sir. Hello. Good evening, everybody, and welcome to 2021 nine months results presentation of Mediaset España Comunicación. This is Mario Sacedo, Head of Investor Relations. As usual, we have scheduled for today a presentation hosted by Massimo Musolino, General Operations Manager. After this presentation, it will be a Q&A session where Massimo, Quico Alum, Publiespaña General Manager, and Javier Uría, company's CFO, will answer all your questions. Massimo, you have the floor. Hi. Good evening all, and welcome to Mediaset España's nine months 2021 presentation. I will begin the presentation by going over our main operational and financial figures for the period. You will have the chance to ask any questions in the Q&A section at the end. Let's start on slide number two with our traditional quick review of the main figures in the first nine months of this year. As you know, one of Mediaset España's targets for the year is to maintain the audience share leadership position in the Spanish market. On the top right-hand side of the slide, you can see that our audience share reached 28.5% in September. This is a gap of 1.2 percentage points compared to the second player. Following the figures reported by InfoAdex, the total TV advertising market bounced back by 15.3% in the first nine months of the year, with Mediaset España reaching a leading market share of 43.2%. We are clear leaders with a gap of 2.5 percentage points compared to the second player. If you look at the total Spanish audiovisual market, Mediaset España's market share in the first nine months was 29.9%. Moving on to financials, on the left-hand side of the page, total net revenues in the period increased by 10.5% to EUR 603.8 million. Operating costs amounted to EUR 451.4 million. We will elaborate later, but the 13.8% increase cannot be considered as a comparable figure due to the pandemic and the long lockdown situation in the same period of last year. Probably, the most significant figure was the 1.2% decline versus 2019, in spite of the fact that this year, we have the EuroCup costs. EBITDA for the period amounted to EUR 152.4 million, which represents a 1.6% increase on last year. This operational performance should be considered outstanding, taking into account the fact that, as we already mentioned, they include the European costs. Net profit at September increases by 10.6% to EUR 114.2 million. Slide three shows the results of the efforts to monetize our audience share in the first nine months of the year. The graph on the left-hand side of the slide shows how our commercial target improved in the year, thanks to the balanced programming grid that we scheduled. The key point to look at here is the evolution of the conversion rate from audience share to commercial target. Although the audience share in terms of total individuals was leveling off, the positive conversion maintained its accelerated trend, and it has constantly been above 2 points. On the other hand, the second player has a commercial target share below its total individual figures. We are actively managing our content in order to maximize this conversion, which is a key element for increasing prices. The graph of slide four illustrates the evolution of our group channel positioning compared to our competitors during this year. The graph is based on figures from Kantar for the period between January to September 2020 and 2021. On the horizontal axis, there is a line with the age, while the vertical axis represents the affinity of the viewers. Affinity is the capacity to convert audience into commercial target. Commercial target is important because it allows us to be more valuable for our advertisers. It allows us to increase prices and be more effective. The commercial target includes those individuals from 16- 59 years old that live in areas with a population of more than 10,000 inhabitants and belong to all but the lowest socioeconomic index. Now, look at the graph, you can see that in 2020, TV targeted the older and less commercial audiences, while Mediaset España and Atresmedia competed for the younger audiences and more commercial target. It's clear that there has been a shift over the last year, and now Atresmedia is moving towards an older audience and less commercial target, which has always been TV's territory. Mediaset España has reinforced its content proposal for younger audiences in order to capture a larger share in this highly prized segment. We are devoting a lot of resources, both human and financial, to creating a long-term loyalty link with younger viewers, thanks to a well-balanced programming grid based on in-house production. In contrast, our competitors' approach geared towards Turkish fiction and soap opera, which is aimed at a different audience group and allowed us to increase prices compared to last year, not just because the market condition has improved, but also because our proposal is more valuable in relative terms. As a result, we are confident that we are on track to offer advertisers a high-value proposal in coming months. It's also remarkable how relevant the strategy is for the sector, because in our view, this is the only way to defend commercial linear TV against the new platform. If we want to engage younger people long term, we must put on our proposal on the left side of the graph, rather than focusing on short-term profitability by offering aging and old-fashioned content. Moving now on slide five, it details our TV advertising performance at the beginning of the year. As InfoAdex reported, Mediaset España TV advertising revenues amounted to EUR 557.4 million, reinforcing the leadership position in the TV advertising market. This gap with our main competitor led to an accumulated TV advertising market share of 43.2%, which is 2.5% higher than theirs. As we saw in the previous slides, the enforcement in our commercial target is key for building a strategy based on price as a fundamental pillar of development. This can be seen in the table where the price evolution in the quarter saw an increase of 4.7%. This figure is even better when we look at the numbers from January to September, where the price increase reached 5.4%. In conclusion, all of the above are clear indicators that the market, with some temporary effects, such as the automotive sector, is recovering, and our conviction of investing in quality content for coming months is the right decision, not only in terms of total individual audience, but also in terms of improving the commercial target. On slide six, I want to highlight the successful digital strategy that we are developing. Starting with Mitele Plus, we have increased the number of subscriptions to the platform, which broke a new record high in October with almost 214,000 subscribers, which is 95.9% increase compared to the end of December 2020. Some of the factors behind the successful performance include the fact that we have streamed exclusive content, some of which 24 hours a day in linear mode, such as previews of TV series and TV shows. We also have a powerful offer in the basic soap opera package and the on-top channel integration, like Fight Sports channel, Acontra+, a specialist channel which has over 240 movies, and a new channel, Dizi section, with as many Turkish fictions. We continue to develop the platform, and we have various milestones set for Mitele Plus in the next months. For example, in November, we will reinforce the platform distribution process to increase coverage, incorporating Movistar set-top box to third-party devices. Before the end of the year, Apple in-app purchases will also be available. Last but not least, we have new features coming up in our roadmap for the next year, including the recommendation engine and the new exclusive Mediaset production and channels. Looking at the digital business as a whole, the performance of different units in 2021 is proving very successful. The organic growth of Mediaset web is maintained, and the participated company, ElDesmarque and Be a Lion, showed a growing trend, both in revenues and profit. As a result, digital revenues for the period, which include advertising revenues, subscription fees, and other digital revenues, amounted to EUR 44.9 million, growing 19% compared to last year, and almost doubling the EUR 25 million reached two years, only two years ago. On slide number seven, you can see how the company has been managing the cost base over the last, actually last year. As I mentioned before, it's quite evident that 2020 is not a valid reference because of the pandemic. The correct reference and the comparison should be made with 2019, a more normalized year. The EUR 451.4 million recorded in the first nine months of 2021 is a good example of how we are actively managing our operations in the long term. If you compare this figure with the last year in which there was a EuroCup, or the year 2016, our OpEx stands at EUR 75 million or 14% lower than then. Furthermore, if we compare the 2021 nine-month OpEx with the same period of 2019, the fair comparison base, our costs remain lower, even including the EuroCup cost in the calculation. On slide number eight, you have a summary of the group financial performance in the first nine months of the year. On top of the page, we have the free cash flow performance for the last nine-month period, which with the exception of 2020, for obvious reasons, shows stable figures situated between EUR 168 million and EUR 182 million. In terms of the ratio between free cash flow and EBITDA, the percentage are also stable and close to 100%. The exception to this is this year, with a ratio of 119%, which is explained by a deficit on investment in content in both 2020 and 2021 as a consequence of the pandemic. In other words, a time difference which we expect will be corrected in future quarters when investments move to more normalized levels. At the bottom of the slide, we have the group's net financial position. You can see that at the end of September 2021, it was EUR 202 million, which, together with the credit lines that we have in place, are evidence of the group's extremely sound financial position, an important asset to pursue possible investment opportunities which could add value to the business, both nationally and internationally. On slide nine, we would like to mention some of our achievements and the projects that we have developed in terms of ESG throughout the year. Something that we started long time ago was the voluntary project that Mediaset España is committed to, that's the offsetting of Scope 1 and 2 residual emissions by financing projects aimed to reducing greenhouse gas emissions and enforcing carbon sink. As a result of these types of environmental commitments, we are proud to have been named as one of the 23 Spanish companies in the Financial Times ranking of Europe's Climate Leaders for 2021, which is composed of 300 European companies that achieved the greatest reduction in greenhouse gas emission intensity. We also try to push the best social values through our programming grid and content distribution based on gender equality, diversity, environment and climate change, and welfare management. In Mediaset España, we offer free advertising space to non-governmental organization to increase visibility of their projects, and also, we traditionally devote some space to social campaign, such as the 12 Meses, where we try to raise awareness about sensitive topics in society. We are also very proud of the fact that we are the only Spanish media group with an ISO COVID-19 certification as a result of the best practices and measures taken to protect our staff and operations during the outbreak. The health and safety of our employees and third parties that work on site at the Mediaset installation is of paramount importance to us. Finally, on slide 10, before we move on to the Q&A section, let's have a quick look at what could happen in the last quarter of the year. In terms of audience, after a slow start to the new season, we have been progressively launching the autumn programming grid. October confirmed Mediaset leadership with Telecinco as the first channel. We are on track to achieve the objective audience leadership. Also in terms of advertising share, we are heading towards a new year of leadership with the price increases thanks to a better audience profile. Also, in digital, we are moving towards a record year due not only to the advertising revenues, which are growing more than the market, but also to the increase in the Mitele Plus subscribers. The gradual return to the normal programming grid and working from home coming to an end, means that our cost base is also increasing compared to 2020. We predict that we will remain somewhere between the 2019 and 2020 figures. We also expect to generate cash and accumulate financial resources to take advantage of potential opportunities that may arise in our audiovisual world where there is a lot of simmering. Now thank you very much, we can move on to the Q&A section. Thank you, Massimo. This is the end of our presentation, and now we are ready for taking all your questions. Operator, please let's proceed to open the Q&A session. Okay, ladies and gentlemen, we will now begin the question- and- answer session. As a reminder, if you wish to ask a question, please press star and one on your telephone and wait for your name to be announced. Right now, we will now take our first question, and it comes from the line of Annick Maas from Exane BNP Paribas. Your line is now open. Hi, good evening. My first question is on ad trends for the next quarter. If you could comment on those, and particularly also highlights the key advertising categories, how they are performing, that would be interesting. Secondly, if I look at your share of in-house produced content back in 2019, Cuatro in-house produced content has risen. How can you get on the Cuatro channel to the same level as what you have on Telecinco? And if so, in how much time will you be able to do that? Just on other revenues, if you could also give an indication for Q4, that would be helpful. Thank you. Okay. Good evening. About the market in October, we estimate that the market is going to be more or less flat, and it's explained mainly by the lack of auto investment. On the other hand, we have sectors such as retail and beverages that they are performing really well. If we want to have an estimation about the quarter, I think it's too early to say that. Keep in mind that the strongest part of the quarter, by far, in terms of investment, is at the end of November with the Black Friday. For this period, we are still negotiating some important campaigns and of course the Christmas period. We have to wait how is going to be the Black Friday. We expect that it's going to be good. The other thing is that the negative impact of the automotive sector is going to decrease as we go to Christmas, as we approach the Christmas period. We hope that November and December, we don't have enough information now, but we have to wait for that. About the level of in-house programs in Cuatro channel, we are working hard to increase the percentage of in-house program in the programming grid of this channel. Of course, it is not an easy task because, you know, it's not easy to find new program at a reasonable cost that can achieve the targets and the audience level that we need for this channel. In Cuatro, there is not only a problem of quantity of audience, it's the quality of audience because probably Cuatro is our, in terms of commercial target, is our best channel. In this sense, we hope to be able to increase the current 76.4% in Cuatro. Honestly, it's very difficult to say how long we need to achieve the same level of Telecinco. What I can ensure that we continue try to increase the dispatch percentage, and we will continue in the next years. Thank you. The, the third, s orry, Annick. The third question was about other revenues? Yes, exactly. Thank you for the rest. Yes. What we have in the first nine months of this year is that the other revenues have come down versus last year. There is a couple of, you know, reasons here. The first one has to do with the movies. Last year, we did not produce much. We did not produce anything. We still have the revenues of the films that have been released either in the last part of 2019 or in the first quarter of 2020. Secondly, we have less sale of rights. Last year, you know, that was a record year in terms of sale of content because we have the content. This year, we still have some content, but of course, we have not been able to produce more because of the pandemic. You also have, and that's why you can see the reduction there. Finally, you have the impact of the Mitele Plus football, you know, subscribers that we have for the season running until the summer of 2020. Obviously, despite all the improvements and all the things that Massimo was talking about, we still feel that less revenues because of the price that the football subscribers, you know, pay for that. That basically explains the kind of EUR 20-something million in a reduction between the nine months of 2020 and this year. Okay. Thank you. Thank you. Okay. Once again, if you wish to ask a question, please press star and one. Okay. Our next question comes from the line of Fernando Cordero from Banco Santander. Your line is now open. Hello. Good afternoon. Thanks for taking my only question, which is not going to be very original. I would just like to share your views on the capital allocation and particularly considering the recurring strong cash flow generation of the company. What should be your understanding for using that cash in the coming, let's say, quarters? To which extent this flexibility for new opportunities may also include dividend payments for minorities? Yes. Fernando, you know, probably the best thing here is to think, in terms of, first of all, of what the capital allocation policy has been in the past, which was always look at investment opportunities, look at the commitments, look at the business in Spain. If after you have done that and you have the money, you just, you know, distribute it to the shareholders. This year, at the beginning of the year, what we said is that this analysis of you know, new investment opportunities at this particular time was very significant because there were business opportunities in the market and you know, in general terms, and we didn't want to miss out on you know that opportunity. This is something which is still ongoing. This year, we have been looking at investment opportunities both in Spain and outside of Spain. Although at the end of the day, we have not been able to find, so far, anything which meets the, you know, criteria that we have, and we have not been able to do it, but it's something that we are still doing. We think that keeping this you know, financial strength is something that is you know, very important. Although we do not have anything in the pipeline right now, we keep you know, looking around and this is something that we will do in the you know, following months, right? We want to keep this capacity not to miss out on these opportunities when they arise. Okay. Thank you. Thanks, Fernando. Okay. We will now take our next question, and it comes from the line of Fernando Abril from Alantra. Your line is now open. Hello. Thank you for taking my questions. I have a couple of them. First is on free cash flow. I've seen that you have extremely positive working capital generation as of nine months at roughly EUR 70 million and much higher than previous years. Any guidance for how should the working capital be by the end of the year? That is the first question. And also linked to that, what are the drivers of this increase of this generation at the working capital level? Second question is again a follow-up from my colleague on the shareholder remuneration. It's been over two years since you halted the dividend payments and my question here is, for how long will you, let's say, look around for investment opportunities until you decide to resume the shareholder remuneration? Thank you. Okay. I go with the first one. You know, working capital this first nine months, as you say, is very, very high, EUR 68 million, and it's a mix of different factors. The first one is it's a seasonal one that we have every single year. It's the fact that you have reduction in, you know, clients because what you have sold in the, you know, summer months is always much more than what you have sold in the last two months of the year. That's always there. This year, on top of that, we have two different elements. The first one is the, you know, reduction in the kind of advance payments that we had made for the Euro Cup. That was in the accounts of, you know, the company at the end of 2020, while it should have been, you know, released if the Euro Cup had been played last year. It stayed on. It has been finally released in June of this year with the Euro Cup itself. This is one-off. This is just a one-off element. The second one-off element had to do, that I expect, and I hope that it's gonna be one-off, has also to do with the fact of lower, you know, sales of content. Last year, we sold our content, therefore we had, you know, higher amount of clients, a higher amount there. This year, because of these lower sales, we have a lower amount. You have a blend here of, you know, seasonality plus this one-off impact that, you know, justify and explain these EUR 68 million. Now, if we look towards the end of the year, that number is gonna go down, okay? It's gonna go down. I think, I will say that it's gonna be positive. You know, probably it's gonna be on the positive side, just as it has been the case in the last couple of years. But of course, once the impact of these specific aspects of the business are not in place, we should be looking for something much lower, not as high as what we have seen at the end of September. About the shareholder remuneration, you were talking about two years without dividend, but I would like to remind you that the reason of the two year are different. The first year, we decided not to distribute any dividend due to the pandemic. Many other companies that I know made the same, did the same. Last year, and we announced it this February, I personally told you that the decision of the company was to look for growth project in country outside Spain to try a way to growth. What we need to do now is to take sides, because the competition today in our audiovisual market is totally different than two years ago. On this basis, today nothing has changed in the sense that everything we said last February is still valid. Right now we see a lot of movement in the European media market with the potential transaction taking place both locally and internationally. We think that this is not the moment to pay out dividends, but this is the right time to find new areas of growth for our business and for our shareholder. In any case, in February, when we approve the 2021 balance, once we have evaluated the market conditions, strategic opportunities, and the real cash availability, the board will make its decision about this issue. I think that before this date, we are not doing anything. Thank you very much. Thank you. Okay. Once again, if you wish to ask a question, please press star and one. Okay. Okay, sir. I think there is no more question than to be covered, then we can end today with this conference call and until today. Thank you very much for attending our presentation. As usual, if you have any additional questions, feel free to contact the investor relations department. Thank you. Good evening. Thank you. Okay. That does conclude our conference for today. Thank you for participating, you may all disconnect.