Virgin Media 2008 Annual Report Download - page 101

VIRGIN MEDIA INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1—Organization and Business
Virgin Media Inc. is a Delaware corporation and is publicly-traded on the NASDAQ Global Select
Market in the United States. We conduct our operations primarily through direct and indirect wholly
owned subsidiaries.
Virgin Media Inc. is a leading U.K. entertainment and communications business providing the first
‘‘quad-play’’ offering of broadband, television, mobile telephone and fixed line telephone services in the
U.K. together with one of the most advanced TV on demand services available in the U.K. market. As
of December 31, 2008, we were 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 by
customer numbers. 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 Virgin1, 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 and data 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
Virgin1, 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.
On February 6, 2007, we changed the name of our corporate parent from NTL Incorporated to
Virgin Media Inc. and the names of certain of our subsidiaries.
Note 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 May 9, 2005, we sold our operations in the Republic of Ireland to MS Irish Cable
Holdings B.V., an affiliate of Morgan Stanley & Co. International Limited, for an aggregate purchase
price of A333.4 million, or £225.5 million. Upon the sale, we recorded a gain on disposal of
£137.0 million, net of tax of £8.5 million. During the year ended December 31, 2006, we were able to
release certain contingent tax liabilities of £7.9 million, relating to the disposal of our former Ireland
operations.
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