Virgin Media 2007 Annual Report Download - page 138

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VIRGIN MEDIA INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
19. Industry Segments (Continued)
Segment information for the year ended December 31, 2007 and 2006 is as follows (in millions):
Year ended December 31, 2007
Cable Content Mobile Elims. Total
Revenue ............................... £3,128.0 £ 348.1 £ 597.6 £ — £ 4,073.7
Inter segment revenue ..................... 4.1 24.4 — (28.5) —
Operating costs .......................... (1,196.9) (287.1) (370.5) 24.5 (1,830.0)
Selling, general and administrative expenses ..... (772.9) (72.9) (118.4) 4.0 (960.2)
Segment OCF ......................... 1,162.3 12.5 108.7 — 1,283.5
Depreciation, amortization and other charges .... (1,160.1) (19.4) (87.4) — (1,266.9)
Operating income (loss) .................... £ 2.2 £ (6.9) £ 21.3 £ — £ 16.6
Identifiable assets ........................ £8,601.6 £ 606.2 £1,258.3 £ — £10,466.1
Goodwill (included in identifiable assets) ....... £1,277.8 £ 82.7 £ 965.1 £ — £ 2,325.6
Year ended December 31, 2006
Cable Content Mobile Elims. Total
Revenue ............................... £3,007.3 £ 302.8 £ 292.1 £ — £ 3,602.2
Inter segment revenue ..................... 2.8 19.2 (0.3) (21.7) —
Operating costs .......................... (1,165.0) (230.2) (196.6) 19.0 (1,572.8)
Selling, general and administrative expenses ..... (772.1) (72.5) (65.0) 2.7 (906.9)
Segment OCF ......................... 1,073.0 19.3 30.2 — 1,122.5
Depreciation, amortization and other charges .... (1,057.8) (13.2) (41.7) — (1,112.7)
Operating income (loss) .................... £ 15.2 £ 6.1 £ (11.5) £ — £ 9.8
Identifiable assets ........................ £9,269.9 £ 634.3 £1,339.3 £ — £11,243.5
Goodwill (included in identifiable assets) ....... £1,295.9 £ 85.6 £ 970.2 £ — £ 2,351.7
In 2005, we did not have any operations in the Content or Mobile segments and all of our
operations related to the Cable segment.
20. Condensed Consolidated Financial Information
On April 13, 2004, our wholly-owned subsidiary, Virgin Media Finance PLC, or Virgin Media
Finance, issued £375 million aggregate principal amount of 9.75% senior notes due 2014, $425 million
aggregate principal amount of 8.75% senior notes due 2014, A225 million aggregate principal amount of
8.75% senior notes due 2014 and $100 million aggregate principal amount of floating rate notes due
2012, together referred to as the Senior Notes due 2014. On July 15, 2006, the $100 million aggregate
principal amount of floating rate notes was redeemed. On July 25, 2006, Virgin Media Finance issued
$550 million aggregate principal amount of 9.125% senior notes due 2016, and together with the Senior
Notes due 2014, these are referred to as the Senior Notes. We and certain of our subsidiaries, namely
Virgin Media Group LLC, Virgin Media Holdings Inc., Virgin Media (UK) Group, Inc. and Virgin
Media Communications Limited, have guaranteed the Senior Notes on a senior basis. VMIH has
guaranteed the Senior Notes on a senior subordinated basis.
F-52