Virgin Media 2006 Annual Report Download - page 11

PART I
Item 1. Business
Overview
Virgin Media Inc. is a leading U.K. entertainment and communications business providing the first “quad−play” offering of
television, broadband, fixed line telephone and mobile telephone services in the United Kingdom. We are the U.K.’s most popular
residential broadband and pay−as−you−go mobile provider and the second largest provider in the U.K. of pay television and fixed line
telephone services.
Virgin Media Television, or Virgin Media TV, and ntl:Telewest Business also operate under the Virgin Media umbrella. Virgin
Media TV provides a broad range of programming through its eleven wholly−owned channels, such as LivingTV and Bravo; through
UKTV, its joint ventures with BBC Worldwide; and through the portfolio of retail television channels operated by sit−up tv.
ntl:Telewest Business provides a complete portfolio of voice, data and internet solutions to leading businesses, public sector
organizations and service providers in the U.K.
We presently manage our business through three reportable segments:
• Cable (83.5% of our 2006 revenue): our cable segment includes the distribution of television programming over our cable
network and the provision of broadband and fixed line telephone services to consumers, businesses and public sector
organizations, both on our cable network and to a lesser extent off our network;
• Mobile (8.1% of our 2006 revenue): our mobile segment includes the provision of mobile telephone services under the name
Virgin Mobile to consumers over cellular networks owned by T−Mobile; and
• Content (8.4% of our 2006 revenue): our content segment includes the operations of our U.K. television channels, such as
LivingTV and Bravo, and sit−up’s portfolio of retail television channels. Although not included in our content segment
revenue, our content team also oversees the UKTV television channels through our joint ventures with BBC Worldwide.
For financial and other information on our segments, refer to note 20 to Virgin Media’s consolidated financial statements
included elsewhere in this annual report.
On February 6, 2007, we changed our name from NTL Incorporated to Virgin Media Inc. as part of our exciting rebrand to
Virgin Media. Virgin is one of the most recognized consumer brands in the world and gives us a prominent profile in a crowded
communications marketplace. The strong heritage and reputation of the Virgin brand is a powerful competitive advantage, and our
distinctive approach to advertising, packaging and marketing will differentiate us from our competitors.
We operate in an increasingly diverse and challenging entertainment and communications marketplace. To meet this challenge, during 2006 we took
several transformative steps, including:
• Combining NTL’s cable business with the cable business of Telewest by acquiring Telewest in a reverse acquisition in
March of 2006:
– the merger combined the two largest U.K. cable operators, with the resulting company becoming the U.K.’s largest
provider of residential broadband and triple−play services of television, broadband and fixed line telephone;
– the total acquisition price was £3.5 billion, including £2.3 billion in cash, common stock valued at £1.1 billion and stock
options and transaction costs; and
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Source: VIRGIN MEDIA INVESTM, 10−K, March 01, 2007