Virgin Media 2008 Annual Report Download - page 168

VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1—Organization and Business
Virgin Media Investment Holdings Limited, or VMIH, is incorporated in the United Kingdom. We
are an indirect wholly owned subsidiary of Virgin Media Inc., or Virgin Media. On February 19, 2007,
we changed our name from NTL Investment Holdings Limited to Virgin Media Investment Holdings
Limited. 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.
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 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).
On June 19, 2006, in connection with the integration of Virgin Media and Telewest, we engaged in
a post acquisition restructuring of Telewest UK Limited and its subsidiaries in order to integrate their
operations with Virgin Media’s existing U.K. operations and to implement permanent financing. This
restructuring involved a series of steps that included internal contributions, distributions, mergers and
acquisitions as well as borrowings from external sources and contributions of the proceeds of the same
to us, to effect our acquisition of the shares of Telewest UK Limited and its subsidiaries.
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