The Government comes to the rescue of RTVE

The Corporation receives a contribution from SEPI that compensates for the deficit accumulated in previous years as a result of the decrease in income.

RTVE will receive an initial contribution of 130 million euros from SEPI to compensate for operating losses generated in previous years. For its part, RTVE will reinforce the application of the Efficiency Plan started in 2012, in order to balance the Corporation financially and financially. In addition, RTVE will carry out a capital reduction to reflect the loss of equity value of its real estate assets during the crisis. On the other hand, the Government will study the budget reinforcement necessary for the Corporation to close the 2014 financial year in conditions of budget balance. In this way, RTVE is provided with financial and asset stability.

The approved endowment contributes to alleviating the drop in income of the public corporation that, despite the efforts to contain spending that began in 2012, has not been able to compensate for the decrease in income, which is basically limited to the compensation of public service, the allocation of the fee for the use of the radio spectrum and the contribution of television and telecommunications operators.

Regarding operating expenses, and in relation to 2011, savings of €356.3 M have been achieved in the years 2012 and 2013. The reduction in expenses obtained in 2013 compared to 2011 reached €216.7 M.

Although expenses have been significantly reduced, such efforts have not been able to fully compensate for the drop in income, the aforementioned reduction having been achieved despite the need to assume expenses derived from unforeseen circumstances.

RTVE is committed, for its part, to continuing the policy of efficiency and cost reduction undertaken in 2012 in the areas of general and operating expenses, structural expenses and personnel expenses; a reduction that, in the case of the aforementioned personnel expenses, corresponds to the path begun with the signing of the Corporation's II Collective Agreement, in November 2013, by the majority of the RTVE union representation.

RTVE Corporation Efficiency Plan 2012-2015

Among the main objectives of the Efficiency Plan initiated in 2012, the need to adjust the expense structure to the current budget situation stands out.

The plan aims to obtain higher quality production at competitive costs, while mobilizing resources towards those activities that contribute most to the Corporation's results.

As a consequence of this Efficiency Plan, accumulated savings of 32.3 million euros are expected in 2014 and 34.9 million in 2015, as a result of measures implemented since 2012, as well as the result of other measures under study. Always preserving the financing of quality programming appropriate to public service commitments.

Current situation

Operating income has been reduced by 26% since 2011, as a result of the decrease in income. Specifically, those coming from public service compensation have gone from 544.3 million euros in 2011 to 292.4 million in 2013, a decrease of 251.9 million euros that represents a 46% difference. Likewise, the lower contribution of television and telecommunications operators by 72 million in the same period contributes to this drop in income. In short, a reduction of more than 300 million from 2011 to 2013. For the current year, an even greater drop in income from TV and telecommunications operators is estimated; Also during this year the cost of the Sochi Olympic Games held throughout the month of February must be met.

For its part, operating expenses have been reduced by €216.7 million, which entails an effort of 18.4%, going from €1,176.8 million in 2011 to €960.1 million in 2013.

This expense item has actually experienced a greater reduction, given the need to absorb additional expenses unrelated to the management of RTVE for an amount of approximately €60 million annually (particularly provisions for deterioration of properties, the expense associated with accounting for sponsorships and donations, and the increase in VAT established in 2012).

Operating expenses

The Corporation continues its cost containment effort that began in 2012, which will continue intensively in 2014 and 2015.

For these purposes, the plan contemplates the improvement of technology services through network integration and the renegotiation of communications and systems contracts. Likewise, a significant effort will be made to optimize the Corporation's production buildings and offices, which will mean lower maintenance costs. Likewise, energy efficiency measures will be implemented that will reduce the bill by 40% in two years.

Additionally, lower expenses associated with the possible sale of properties not necessary for the development of the activity are contemplated, as well as additional reductions in terms of transportation and travel management. A resizing of the Corporation's services is also proposed, reducing their scope, as well as an improvement in supply management.

The efficiency measures in operating expenses of correspondent offices and territorial centers also stand out.

Personnel expenses

The Efficiency Plan represents a continuity in the reduction of personnel expenses promoted by RTVE after the signing of the Corporation's II Collective Agreement at the end of 2013. This agreement has led to the reduction of around 10% of personnel expenses and the introduction of flexibility measures in human resources management, such as the new professional classification system that will increase functional versatility, the simplification and adjustment of remuneration concepts, and the incorporation of flexibility measures in terms of working hours.

It is also contemplated in this section to continue applying measures to contain and rationalize spending on variable supplements.

In the interest of improving productivity, temporary hiring will be reduced by 5%, and the application of an incentivized amortizable voluntary leave program will be studied.

Finally, we will insist on the process of reducing the directive and management structure by a maximum of 5% compared to the current one, as well as up to 16% in operational commands.

Integration of Telesport in La2

The Corporation will study the creation of a streaming channel dedicated entirely to sport, in line with the large European public channels, as well as the integration of the thematic channel Teledeporte in La 2. This measure will mean a reduction in programming costs, as well as a substantial annual saving in broadcast expenses, derived from the release of a part of the second multiplex.