Virgin Media 2006 Annual Report Download - page 88

VIRGIN MEDIA INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
1. Organization and Business (Continued)
(b) Business
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.
2. Significant Accounting Policies
Basis of Presentation
The accompanying consolidated financial statements have been prepared in accordance with U.S. Generally Accepted
Accounting Principles.
On March 3, 2006, NTL Holdings Inc. (formerly known as NTL Incorporated and now known as Virgin Media Holdings Inc, or
Virgin Media Holdings), merged with a subsidiary of NTL Incorporated (formerly known as Telewest Global, Inc., or Telewest, and
now known as Virgin Media Inc., or Virgin Media). The merger has been accounted for as a reverse acquisition in which Virgin
Media Holdings is treated as the accounting acquirer, primarily because Virgin Media Holdings’ shareholders owned 75% of the
common stock upon completion of the merger. Following the merger, Telewest changed its name to NTL Incorporated, and
subsequently to Virgin Media Inc. As a result, the historical financial statements of Virgin Media Holdings became the historical
financial statements of Virgin Media Inc. as of the completion of the merger. Therefore, the results for the years ended December 31,
2005 and December 31, 2004 reflect the operations and cash flows of Virgin Media Holdings only and the balance sheet at
December 31, 2005 reflects the financial position of Virgin Media Holdings only. The results of operations and cash flows for
Telewest, the acquired company for accounting purposes, are included in the consolidated financial statements from March 3, 2006,
the date on which the merger was completed. The
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Source: VIRGIN MEDIA INVESTM, 10−K, March 01, 2007