Virgin Media 2008 Annual Report Download - page 77

respectively. At December 31, 2007 our investment in UKTV is carried on the balance sheet at
£367.7 million, which includes an outstanding loan totaling £145.6 million.
UKTV receives financing through a loan from Virgin Media, which was £145.6 million at
December 31, 2007. This loan effectively acts as a revolving facility for UKTV. We received cash
payments from UKTV in the form of loan capital repayments of £16.4 million for the year ended
December 31, 2007. We also received dividends, interest payments and payments for consortium tax
relief from UKTV totaling £21.9 million during 2007.
Consolidated Statement of Cash Flows
Years Ended December 31, 2008 and 2007
For the year ended December 31, 2008, cash provided by operating activities increased to
£755.6 million from £716.0 million for the year ended December 31, 2007. This increase was primarily
attributable to an improvement in working capital, partially offset by an increase in cash paid for
interest. For the year ended December 31, 2008, cash paid for interest, exclusive of amounts
capitalized, increased to £515.8 million from £486.9 million during the same period in 2007. This
increase resulted from changes in the timing of interest payments under our senior credit facility.
For the year ended December 31, 2008, cash used in investing activities was £470.5 million
compared with cash used in investing activities of £509.8 million for the year ended December 31, 2007.
The cash used in investing activities in the years ended December 31, 2008 and 2007 mainly
represented purchases of fixed assets. Purchases of fixed and intangible assets decreased to
£479.7 million for the year ended December 31, 2008 from £536.2 million for the same period in 2007
reflecting a higher utilization of finance leases.
Cash used in financing activities for the year ended December 31, 2008 was £427.3 million
compared with cash used in financing activities of £302.5 million for the year ended December 31,
2007. For the year ended December 31, 2008, the principal uses of cash were the partial repayments
under our senior credit facility and capital lease payments, totaling £846.3 million, and the principal
components of cash provided by financing activities were new borrowings from the issuance of our
convertible senior notes, net of financing fees, of £447.7 million. For the year ended December 31,
2007, the principal uses of cash were the partial repayments of our senior credit facility and capital
lease payments, totaling £1,170.8 million, and the principal components of cash provided by financing
activities were new borrowings under our senior credit facility, net of financing fees, of £874.5 million.
See further discussion under Liquidity and Capital Resources—Senior Credit Facility.
Years Ended December 31, 2007 and 2006
For the year ended December 31, 2007, cash provided by operating activities decreased to
£716.0 million from £786.1 million for the year ended December 31, 2006. This decrease was primarily
attributable to an increase in cash paid for interest. For the year ended December 31, 2007, cash paid
for interest, exclusive of amounts capitalized, increased to £486.9 million from £327.1 million during the
same period in 2006. This increase resulted from the higher levels of borrowings and repayment of
existing facilities following the reverse acquisition of Telewest and the acquisition of Virgin Mobile.
For the year ended December 31, 2007, cash used in investing activities was £509.8 million
compared with cash used in investing activities of £2,954.0 million for the year ended December 31,
2006. The cash used in investing activities in the year ended December 31, 2007 mainly represented
purchases of fixed assets. The cash used in investing activities in the year ended December 31, 2006
included £2,004.6 million for the reverse acquisition of Telewest, net of cash acquired of £294.9 million,
and £418.5 million for the acquisition of Virgin Mobile, net of cash acquired of £14.1 million. Purchases
of fixed and intangible assets decreased to £536.2 million for the year ended December 31, 2007 from
£554.8 million for the same period in 2006 reflecting a higher utilization of finance leases.
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