Virgin Media 2007 Annual Report Download - page 94

VIRGIN MEDIA INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
1. Organization and Business (Continued)
We conduct our operations primarily through direct and indirect wholly-owned subsidiaries.
(b) Business
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 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.
2. Significant Accounting Policies
Basis of Presentation
The accompanying consolidated financial statements have been prepared in accordance with
U.S. Generally Accepted Accounting Principles, or GAAP.
On March 3, 2006, NTL Holdings Inc. (formerly known as NTL Incorporated and now known as
Virgin Media Holdings Inc, or Virgin Media Holdings), merged with a subsidiary of NTL Incorporated
(formerly known as Telewest Global, Inc., or Telewest, and now known as Virgin Media Inc., or Virgin
Media). The merger has been accounted for as a reverse acquisition in which Virgin Media Holdings is
treated as the accounting acquirer, primarily because Virgin Media Holdings’ shareholders owned 75%
of the common stock upon completion of the merger. Following the merger, Telewest changed its name
to NTL Incorporated, and subsequently to Virgin Media Inc. As a result, the historical financial
statements of Virgin Media Holdings became the historical financial statements of Virgin Media Inc. as
of the completion of the merger. The results for the year ended December 31, 2005 reflect the
F-8