Virgin Media 2006 Annual Report Download - page 147

VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Organization and Business
(a) Historical Structure of the Company
Virgin Media Investment Holdings Limited (VMIH) is incorporated in the United Kingdom (U.K.). We are an indirect
wholly−owned subsidiary of Virgin Media Inc., or Virgin Media. On February 19, 2007, we changed our name from NTL Investment
Holdings Limited to Virgin Media Investment Holdings Limited.
We were incorporated in March 1996 under the laws of England and Wales. From March 1996 to April 1998, we were a
wholly−owned subsidiary of Virgin Media (UK) Group, Inc. (formerly NTL (UK) Group, Inc.). From April 1998 to April 2004, we
were a wholly−owned subsidiary of Virgin Media Communications Limited (formerly NTL Communications Limited). Since
April 2004, we are a wholly−owned subsidiary of Virgin Media Finance PLC (formerly NTL Cable PLC).
In October 2003, we cancelled our outstanding share capital and issued 1,000 shares of £0.001 each for every existing share
outstanding. Shareholders’ equity has been retrospectively restated to show the effect of the stock split.
On June 19, 2006, in connection with the integration of Virgin Media and Telewest, we engaged in a post acquisition
restructuring of Telewest UK Limited and its subsidiaries in order to integrate their operations with Virgin Media’s existing U.K.
operations and to implement permanent financing. This restructuring involved a series of steps that included internal contributions,
distributions, mergers and acquisitions as well as borrowings from external sources and contributions of the proceeds of the same to
us, to effect our acquisition of the shares of Telewest UK Limited and its subsidiaries. The completion of this restructuring resulted in
Telewest UK Limited and its subsidiaries becoming our wholly−owned subsidiary.
On July 4, 2006, we acquired 100% of the outstanding shares and options of Virgin Mobile Holdings (UK) plc, or Virgin Mobile,
through a U.K. scheme of arrangement.
(b) Business
Virgin Media 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: 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;
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Source: VIRGIN MEDIA INVESTM, 10−K, March 01, 2007