Virgin Media 2006 Annual Report Download - page 50

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
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: 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: 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: 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 our interest in the UKTV television channels, through our joint ventures with BBC Worldwide.
For further discussion of our business please refer to Item 1.
Revenue
Our revenue by segment for the years ended December 31, 2006, 2005 and 2004 was as follows (in millions):
Year ended December 31,
2006 2005 2004
Cable Segment
Consumer £ 2,393.3 66.4% £ 1,520.0 78.0% £ 1,507.3 75.4%
Business 614.0 17.1 427.6 22.0 493.0 24.6
3,007.3 83.5 1,947.6 100.0 2,000.3 100.0
Mobile Segment 292.1 8.1 — — — —
Content Segment 302.8 8.4 — — — —
£ 3,602.2 100.0% £ 1,947.6 100.0% £ 2,000.3 100.0%
The principal sources of revenue within each segment are:
Cable
• consumer—monthly fees and usage charges for telephone service, cable television service and internet access; and
• business—monthly fees and usage charges for inbound and outbound voice, data and internet services and charges for
transmission, fiber and voice services provided to other telecommunications service providers over our national network.
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Source: VIRGIN MEDIA INVESTM, 10−K, March 01, 2007