Virgin Media 2006 Annual Report Download - page 69

Loss from continuing operations
For the year ended December 31, 2005, loss from continuing operations was £241.7 million compared with a loss of
£509.4 million for the same period in 2004. The reduction in loss from continuing operations was primarily attributable to savings in
interest expense, the reduction in the loss on extinguishment of debt, lower depreciation and foreign currency transaction gains
compared with losses in 2004.
Loss from continuing operations per share
Basic and diluted loss from continuing operations per common share for the year ended December 31, 2005 was £1.13 and for
the year ended December 31, 2004 was £2.33. Basic and diluted loss from continuing operations per share is computed using an
average of 213.8 million shares issued in the year ended December 31, 2005 and an average of 218.0 million shares issued for the
same period in 2004. Basic and diluted loss from continuing operations per common share and average shares issued have been
restated to reflect the share exchange ratio used in the reverse acquisition of Telewest. Options to purchase 3.1 million shares at
December 31, 2005 were excluded from the calculation of diluted loss from continuing operations per share, since the inclusion of
such options is anti−dilutive.
Consolidated Statement of Cash Flows
Years ended December 31, 2006 and 2005
Cash flow information provided below is for our continuing operations.
For the year ended December 31, 2006, cash provided by operating activities increased to £786.1 million from £325.6 million for
the year ended December 31, 2005. This increase is primarily attributable to the reverse acquisition of Telewest and the acquisition of
Virgin Mobile, offset by an increase in cash paid for interest. For the year ended December 31, 2006, cash paid for interest, exclusive
of amounts capitalized, increased to £327.1 million from £216.8 million during the same period in 2005. This increase resulted from
the higher levels of borrowings and repayment of existing facilities following the reverse acquisition of Telewest and the acquisition
of Virgin Mobile.
For the year ended December 31, 2006, cash used in investing activities was £2,954.0 million compared with cash provided by
investing activities of £1,172.8 million for the year ended December 31, 2005. The cash used in investing activities in the year ended
December 31, 2006 includes £2,004.6 million for the reverse acquisition of Telewest, net of cash acquired of £294.9 million, and
£418.5 million for the acquisition of Virgin Mobile, net of cash acquired of £14.1 million. The cash provided by investing activities in
the year ended December 31, 2005 includes £1.229 billion from the sale of our Broadcast operations. Purchases of fixed assets
increased to £544.8 million for the year ended December 31, 2006 from £288.1 million for the same period in 2005 primarily because
of the timing of cash payments and the reverse acquisition of Telewest.
Cash provided by financing activities for the year ended December 31, 2006 was £1,865.2 million compared with cash used in
financing activities of £895.6 million in the year ended December 31, 2005. The principal components of cash provided by financing
activities for the year ended December 31, 2006 were the new £5.3 billion senior credit facility and the $550 million senior notes due
2016. The principal uses of cash were the repayment of our previous senior credit and bridge facilities.
The principal components of the cash used in financing activities for the year ended December 31, 2005 were the repurchases of
our common stock in the open market in February and April 2005 for £114.0 million, the prepayment of £723.0 million on our senior
credit facility and redemption of the floating rate senior notes due 2012.
65
Source: VIRGIN MEDIA INVESTM, 10−K, March 01, 2007