Virgin Media 2007 Annual Report Download - page 48

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Overview
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
U.K. together with one of the most advanced TV on demand services available in the U.K. market. By
number of customers, we are the U.K.’s largest residential broadband and mobile virtual network
operator and second largest provider in the U.K. of pay television and fixed line telephone services.
Through ntl:Telewest Business, which also operates under the Virgin Media group, we provide a
complete portfolio of voice, data and internet solutions to leading businesses, public sector
organizations and service providers in the U.K.
Through Virgin Media Television, or Virgin Media TV, we also provide a broad range of
programming through our wholly-owned channels, such as Virgin 1, Living and Bravo; through UKTV,
our joint ventures with BBC Worldwide; and through the portfolio of retail television channels
operated by sit-up tv.
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 brand
name Virgin Mobile to consumers over cellular networks owned by third parties; and
•Content: our content segment includes the operations of our U.K. television channels, such as
Virgin 1, which was launched on October 1, 2007, as well as Living, Bravo and sit-up’s portfolio
of retail television channels. Although not included in our content segment revenue, our content
management team also oversees our interest in the UKTV television channels through our joint
ventures with BBC Worldwide.
For further discussion of our business, please refer to Item 1 of this annual report.
Revenue
Our revenue by segment for the years ended December 31, 2007, 2006 and 2005 was as follows
(in millions):
Year ended December 31,
2007 2006 2005
Cable Segment
Consumer .......................... £2,486.2 61.0% £2,393.3 66.4% £1,520.0 78.0%
Business ........................... 641.8 15.8 614.0 17.1 427.6 22.0
3,128.0 76.8 3,007.3 83.5 1,947.6 100.0
Mobile Segment ........................ 597.6 14.7 292.1 8.1 — —
Content Segment ....................... 348.1 8.5 302.8 8.4 — —
£4,073.7 100.0% £3,602.2 100.0% £1,947.6 100.0%
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