Virgin Media 2007 Annual Report Download - page 38

We depend on the ability to attract and retain key personnel without whom we may not be able to manage our
business lines effectively.
We operate in a number of rapidly changing technologically advanced markets that will continue to
challenge our senior management. There is significant competition in attracting and retaining qualified
personnel in the telecommunications industry, especially individuals with experience in the cable sector.
We believe that the unique combination of skills and experience possessed by our senior management
would be difficult to replace, and that the loss of our key personnel could have a material adverse
effect on us, including the impairment of our ability to execute our business plan. Our future success is
likely to depend in large part on our continued ability to attract and retain highly skilled and qualified
personnel.
Certain of our significant stockholders could have an influence over our business and affairs.
Certain persons or entities are our significant stockholders. Based on SEC filings to date, the
Virgin Group beneficially owns 10.5% of our issued and outstanding common stock; in addition,
RiverSource Investments, LLC beneficially owns 10.3%, Franklin Mutual Advisers, LLC beneficially
owns 9.7%, SRM Global Master Fund Limited Partnership beneficially owns 9.1% and Glenview
Capital Management, LLC beneficially owns 5.0%, of our issued and outstanding common stock. Each
of these significant stockholders could have an influence over the business and affairs of our company.
On April 3, 2006, we entered into a license agreement with Virgin Enterprises Limited which
provides for us to use the Virgin name and logo in our consumer and content businesses. In connection
with this agreement, Virgin Enterprises Limited had the right to propose a candidate to our
Nominating Subcommittee to fill a single seat on our board. Virgin Enterprises Limited nominated
Mr. Gordon McCallum, Director of Virgin Enterprises Limited, and he was appointed to our board on
September 11, 2006. As a result of Mr. McCallum’s relationship with Virgin Enterprises Limited, if
conflicts between the interests of Virgin Enterprises Limited and the interests of our other stockholders
should arise, this director may not be disinterested.
Disruptions in Virgin Media TV’s or sit-up’s satellite transmissions could materially adversely affect their
respective operations.
Virgin Media TV and sit-up currently broadcast their digital programming content with leased
satellite transponders, the operations of which are beyond the control of Virgin Media TV and sit-up.
Disruption to one of these satellites would result in disruption to Virgin Media TV’s or sit-up’s
programming and, depending upon the nature of that disruption, could result in a loss of revenues, a
loss of customers and/or adverse publicity. In addition the satellite transponders may fail before the
expiration of Virgin Media TV’s and sit-up’s contractual right to utilize them, which may result in
additional costs as alternative arrangements are made for satellite transmission.
We do not insure the underground portion of our cable network and various pavement-based electronics
associated with our cable network.
We obtain insurance of the type and in the amounts that we believe are customary for similar
companies. Consistent with this practice, we do not insure the underground portion of our cable
network or various pavement-based electronics associated with our cable network. Almost all our cable
network is constructed underground. As a result, any catastrophe that affects our underground cable
network or our pavement-based electronics could prevent us from providing services to our customers
and result in substantial uninsured losses.
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