Virgin Media 2006 Annual Report Download - page 262

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Exhibit 12.1
VIRGIN MEDIA INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in millions, except ratios)
Year ended December 31,
2006
Reorganized
Company
2005
Reorganized
Company
2004
Reorganized
Company
2003
Reorganized
Company
2002(1)
Predecessor
Company
Fixed charges:
Interest £ 457.4 £ 235.8 £ 271.0 £ 459.9 £ 571.0
Interest portion of rental expense 17.7 14.2 14.9 14.9 28.9
Fixed charges £ 475.1 £ 250.0 £ 285.9 £ 474.8 £ 599.9
Earnings:
Loss from continuing operations £ (541.8) £ (221.9) £ (504.4) £ (606.6) £ (1,617.4)
Fixed charges 475.1 250.0 285.9 474.8 599.9
Less: capitalized interest — — — (3.4) (30.8)
£ (66.7) £ 28.1 £ (218.5) £ (135.2) £ (1,048.3)
Ratio of earnings to fixed charges — 0.1 — — —
Deficiency (2) £ (541.8) — £ (504.4) £ (610.0) £ (1,648.2)
The ratio of earnings to fixed charges and combined fixed charges and preferred stock dividends is not meaningful for the
periods that result in a deficit.
(1) In accordance with SOP−97, we discontinued accruing interest on certain of our debt. For the year ended December 31,
2002, contractual interest was £948.7 million, which was £429.4 million in excess of reported interest expense.
(2) Earnings for the years ended December 31, 2006, 2004, 2003 and 2002 were inadequate to cover fixed charges by the
amounts indicated in this row.
F−1
Source: VIRGIN MEDIA INVESTM, 10−K, March 01, 2007