Virgin Media 2007 Annual Report Download - page 72

attributable to an increase in cash paid for interest. For the year ended December 31, 2007, cash paid
for interest, exclusive of amounts capitalized, increased to £486.9 million from £327.1 million during the
same period in 2006. This increase resulted from the higher levels of borrowings and repayment of
existing facilities following the reverse acquisition of Telewest and the acquisition of Virgin Mobile.
For the year ended December 31, 2007, cash used in investing activities was £509.8 million
compared with cash used in investing activities of £2,954.0 million for the year ended December 31,
2006. The cash used in investing activities in the year ended December 31, 2007 mainly represented
purchases of fixed assets. The cash used in investing activities in the year ended December 31, 2006
included £2,004.6 million for the reverse acquisition of Telewest, net of cash acquired of £294.9 million,
and £418.5 million for the acquisition of Virgin Mobile, net of cash acquired of £14.1 million. Purchases
of fixed and intangible assets decreased to £536.2 million for the year ended December 31, 2007 from
£554.8 million for the same period in 2006 reflecting a higher utilization of finance leases.
Cash used in financing activities for the year ended December 31, 2007 was £302.5 million
compared with cash provided by financing activities of £1,865.2 million for the year ended
December 31, 2006. For the year ended December 31, 2007, the principal uses of cash were the part
repayments of our senior credit facilities and capital lease payments, totaling £1,170.8 million, and the
principal components of cash provided by financing activities were new borrowings under our credit
facilities, net of financing fees, of £874.5 million. For the year ended December 31, 2006, the principal
components of cash provided by financing activities for the year ended December 31, 2006 were the
new £5.3 billion senior credit facility and the $550 million senior notes due 2016, and the principal uses
of cash were the repayment of our previous senior credit and bridge facilities utilizing the new
borrowings and cash provided by operations. See further discussion under Liquidity and Capital
Resources—Senior Credit Facility.
Years Ended December 31, 2006 and 2005
Cash flow information provided below is for our continuing operations.
For the year ended December 31, 2006, cash provided by operating activities increased to
£786.1 million from £263.6 million for the year ended December 31, 2005. This increase was primarily
attributable to the reverse acquisition of Telewest and the acquisition of Virgin Mobile, offset by an
increase in cash paid for interest. For the year ended December 31, 2006, cash paid for interest,
exclusive of amounts capitalized, increased to £327.1 million from £216.8 million during the same
period in 2005. This increase resulted from the higher levels of borrowings and repayment of existing
facilities following the reverse acquisition of Telewest and the acquisition of Virgin Mobile.
For the year ended December 31, 2006, cash used in investing activities was £2,954.0 million
compared with cash provided by investing activities of £1,172.0 million for the year ended
December 31, 2005. The cash used in investing activities in the year ended December 31, 2006 included
£2,004.6 million for the reverse acquisition of Telewest, net of cash acquired of £294.9 million, and
£418.5 million for the acquisition of Virgin Mobile, net of cash acquired of £14.1 million. The cash
provided by investing activities in the year ended December 31, 2005 included £1.229 billion from the
sale of our Broadcast operations. Purchases of fixed assets increased to £544.8 million for the year
ended December 31, 2006 from £288.1 million for the same period in 2005 primarily because of the
timing of cash payments and the reverse acquisition of Telewest.
Cash provided by financing activities for the year ended December 31, 2006 was £1,865.2 million
compared with cash used in financing activities of £895.6 million in the year ended December 31, 2005.
The principal components of cash provided by financing activities for the year ended December 31,
2006 were the new £5.3 billion senior credit facility and the $550 million senior notes due 2016. The
principal uses of cash during 2006 were the repayment of our previous senior credit and bridge
facilities.
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