Virgin Media 2008 Annual Report Download - page 45

As of December 31,
2008 2007 2006 2005 2004
(in millions, except per share data)
Balance Sheet Data:
Cash, cash equivalents and marketable
securities ........................... £ 181.6 £ 321.4 £ 418.5 £ 832.1 £ 136.8
Working capital ........................ (465.8) (453.4) (604.4) 529.9 (286.8)
Fixed assets .......................... 5,347.8 5,655.6 6,026.3 3,294.9 3,531.6
Total assets ........................... 9,897.8 10,466.1 11,243.5 4,988.5 5,493.3
Long term obligations ................... 6,308.2 5,958.5 6,159.1 2,280.0 3,013.5
Shareholders’ equity .................... 1,878.1 2,810.5 3,230.1 1,955.0 1,574.5
Dividends declared per common share
(in U.S. dollars) ...................... $ 0.16 $ 0.13 $ 0.05 — —
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Overview
We are a leading U.K. entertainment and communications business providing a ‘‘quad-play’’
offering of broadband, television, mobile telephone and fixed line telephone services. As of
December 31, 2008, we were the U.K.’s largest residential broadband provider and mobile virtual
network operator, and the second largest provider of pay television and fixed line telephone services by
number of customers. We owned and operated cable networks that passed approximately 12.6 million
homes in the U.K. and provided service to approximately 4.8 million cable customers on our network.
Approximately 56% of our customers on our network were ‘‘triple-play’’ customers, receiving
broadband internet, television and fixed line telephone services from us. In addition, we provided
mobile telephone service to 3.5 million pre-pay mobile customers and 0.6 million contract mobile
customers over third party networks.
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 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 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 segment 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.
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