Virgin Media 2007 Annual Report Download - page 2

Dear Stockholder,
2007 has been a year of significant change, challenge and achievement for our company. Our hard working
and dedicated employees have created a leading entertainment and communications business providing
broadband, television, fixed line telephone and mobile telephone services together with one of the most
advanced TV on demand services available in the U.K.
Our customers are responding very well to one of the most compelling consumer propositions in the
country driven by the Virgin brand. We weathered the first half of 2007 when we dropped several basic
channels, launched the new brand and were in the process of building the strong management team we now
have on board.
The second half of the year showed accelerated momentum throughout the business. We drove our
revenue generating unit net additions to 272,100 in the fourth quarter highlighted by strong growth in net
additions. Television net additions of 61,100 were facilitated by our state of the art Video on Demand platform
which provides a solid competitive advantage over satellite. Broadband net additions of 111,200 reflects the
strength of our network, further evidenced by the introduction of our 20Mb product in 2007 and plans to launch
a 50Mb tier in 2008. Our telephony offering returned to growth in the fourth quarter and mobile contracts grew
by 184,200 in 2007. We are confident that our product strategy heading into 2008 coupled with our intense focus
on keeping our customers can continue the strong momentum we built in the second half of 2007.
In July 2007, we announced that we had initiated a review of strategic alternatives and had also received a
proposal to acquire the company. We subsequently announced that due to the significant worsening of the
world credit markets this process would be extended to allow for a more stable debt market. The company is
now completely focused on successfully driving growth in volumes, enhancing the fundamental processes and
driving efficiencies to result in higher cash flows.
Our new management team led by Neil Berkett, our CEO, has been leading the charge on our initiatives.
We are improving our total customer experience including installation, call handling, billing and provisioning.
In our Content division, our television channels have continued to grow ratings and grow market share. In
October, we launched a new channel, Virgin 1, on cable, satellite and free-to-air platforms. Our Business
division has successfully focused on growth in the provision of retail data services to medium and large
companies and public sector organizations.
We will also continue with the process of engaging our employees around our Virgin brand values and
behaviours which includes the need to embed the principle of Corporate Responsibility across our business
activities.
In summary, 2007 has been an important year for us. We have largely completed the integration activities
associated with the merger of NTL and Telewest, thus allowing us to focus on exploiting our competitive
advantages and driving operational efficiency. In 2008, we plan to continue our strategy of leveraging our
superior network capability to drive broadband growth and deliver the next generation of personalized on
demand content, as well as focusing on improving the entire customer experience and reducing churn. With
terrific employees, a strong brand, superior products, and improving service and operations, we believe we are
well placed for continued growth and cash flow generation.
James F. Mooney Neil Berkett
Chairman Chief Executive Officer
April 7, 2008