Virgin Media 2008 Annual Report Download - page 72

2007 from 2.17 at December 31, 2006 and by ‘‘triple-play’’ penetration growing to 49.5% at
December 31, 2007 from 40.6% at December 31, 2006. A triple-play customer is a customer who
subscribes to all three of our television, broadband and fixed line telephone services.
Business: Revenues from our business customers for the years ended December 31, 2007 and
2006 was comprised of (in millions):
Year ended December 31,
2007 2006 Increase/
(Actual) (Pro Forma) (Decrease)
Revenue:
Retail:
Voice ............................................ £214.6 £233.7 (8.2)%
Data ............................................. 170.6 156.9 8.7%
Other ............................................ 67.3 55.8 20.6%
452.5 446.4 1.4%
Wholesale: .......................................... 189.3 210.4 (10.0)%
Total revenue .......................................... £641.8 £656.8 (2.3)%
For the year ended December 31, 2007, revenue from business customers decreased by 2.3% to
£641.8 million from £656.8 million on a pro forma basis for the year ended December 31, 2006. This
decrease was primarily attributable to declines in telephony voice revenues, partially offset by growth in
data revenue in our retail sales channel. Retail data revenues represented 37.7% of the retail business
revenue for the year ended December 31, 2007 compared with 35.1% for the year ended December 31,
2006.
Cable segment OCF
For the year ended December 31, 2007, Cable segment OCF increased by 1.5% to £1,162.3 million
from £1,145.2 million on a pro forma basis for the year ended December 31, 2006. Lower consumer
and business revenues have been more than offset by savings in operating costs and selling, general and
administrative costs. Cost savings resulting from the integration activities since the reverse acquisition
of Telewest, including improvements in bad debt expense, lower company bonus scheme payments and
a reduction in share based compensation expense were partially offset by marketing and advertising
costs incurred in connection with the rebrand to Virgin Media in the first quarter of 2007.
Summary Cable Statistics
Selected statistics for residential cable customers of Virgin Media, excluding customers off our
network and Virgin Mobile customers, for the three months ended December 31, 2007 as well as the
four prior quarters, are set forth in the table below. The total number of cable customers directly
connected to our network fell by 117,200 during the six months ended June 30, 2007, partly as a result
of the increase in competition in the marketplace together with the removal of BSkyB’s basic channels
from our platform, and increased during the second half of the year by 37,400 reflecting our focus on
reducing customer churn during this period, particularly in the fourth quarter during which our average
monthly churn fell to 1.4%. The total number of Cable RGUs grew to 10,923,400 at December 31,
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