Virgin Media 2006 Annual Report Download - page 64

activity in Q2−06 is a result of more closely aligning customer definitions between NTL and Telewest together with the removal
of approximately 20,000 inactive backlog customers in NTL.
Data cleanse activity in Q4−05 resulted in a decrease in NTL of 18,100 customers and 43,100 RGUs, a decrease of
approximately 17,700 Telephone, 26,600 Broadband and an increase of 1,300 net TV RGUs.
(2) Review of inactive backlog customers in the three months ended December 31, 2005 resulted in an adjustment to remove an
additional 10,000 customers.
(3) Customer churn is calculated by taking the total disconnects during the month and dividing them by the average number of
customers during the month. Average monthly churn during a quarter is the average of the three monthly churn calculations
within the quarter.
(4) Each telephone, television and broadband internet subscriber directly connected to our network counts as one RGU. Accordingly,
a subscriber who receives both telephone and television service counts as two RGUs. RGUs may include subscribers receiving
some services for free or at a reduced rate in connection with incentive offers.
(5) Dial−up internet customers exclude metered customers who have not used the service within the last 30 days.
(6) The monthly cable average revenue per user, or cable ARPU, is calculated on a quarterly basis by dividing total revenue
generated from the provision of telephone, television and internet services to customers who are directly connected to our
network in that period, exclusive of VAT, by the average number of customers directly connected to our network in that period
divided by three. Cable average revenue per user for the three months ended March 31, 2006, previously disclosed as £40.92, has,
due to the discovery of a calculation error, been restated to £40.37.
(7) For the three months ended March 31, 2006, average customers has been calculated by adding the average customers who were
directly connected to the NTL network and the pro rata proportion of customers directly connected to the Telewest network for
the number of days subsequent to the acquisition of Telewest.
Mobile Segment
Virgin Mobile was acquired on July 4, 2006, and its results of operations have been consolidated from that date. Total Mobile
segment revenue for the period since acquisition to December 31, 2006 was £292.1 million, of which £274.3 million was service
revenue and £17.8 million was equipment revenue. Equipment revenue is stated net of discounts earned through service usage. Mobile
segment OCF was £30.2 million for the period since acquisition.
Net customer additions in the three month ended December 31, 2006 were 11,100 compared to 122,700 in the three months
ended September 30, 2006, Customer growth was lower due to increased price competition, and higher advertising spend from our
mobile competitors. We continued to grow the number of higher mobile ARPU contract customers.
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Source: VIRGIN MEDIA INVESTM, 10−K, March 01, 2007