Virgin Media 2009 Annual Report Download - page 44

telephony services by number of customers. We believe our advanced, deep fiber access network
enables us to offer faster and higher quality broadband services than our digital subscriber line, or
DSL, competitors. As a result, we provide our customers with a leading next generation broadband
service and one of the most advanced TV on-demand services available in the U.K. market. As of
December 31, 2009, we provided service to approximately 4.8 million residential customers on our cable
network. We are also one of the U.K.’s largest mobile virtual network operators by number of
customers, providing mobile telephony service to approximately 2.2 million pre-pay mobile customers
and nearly one million contract mobile customers over third party networks. As of December 31, 2009,
approximately 60.5% of residential customers on our cable network were ‘‘triple-play’’ customers,
receiving broadband internet, television and fixed line telephony services from us, and approximately
10.7% were ‘‘quad-play’’ customers, also receiving mobile telephony services.
In addition, 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 Business
(formerly ntl:Telewest Business). We also provide a broad range of programming through Virgin Media
Television, or Virgin Media TV, which operates our wholly owned channels, such as Virgin1, Living and
Bravo; and through UKTV, our joint ventures with BBC Worldwide.
In 2009, we implemented a new operating model for our organization and made corresponding
revisions to our internal reporting structure and the related financial information used by our
management, including our chief operating decision maker, to assess the performance of our business.
As of December 31, 2009, our operating segments were as follows:
•Consumer: Our Consumer segment includes the distribution of television programming over our
cable network and the provision of broadband and fixed line telephone services to residential
consumers, both on and off our cable network. Our Consumer segment also includes our mobile
telephony and mobile broadband operations, provided through Virgin Mobile.
•Business: Our Business segment includes the voice and data telecommunication and internet
solutions services we provide through Virgin Media Business to businesses, public sector
organizations and service providers.
•Content: Our Content segment includes the operations of our wholly owned television channels,
such as Virgin1, Living and Bravo. 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 April 1, 2009, we sold our sit-up reporting unit
which operated a portfolio of auction based retail television channels and was formerly included
within our Content segment.
For further discussion of our business, please refer to Item 1 of this document.
Revenue
Our revenue by segment for the years ended December 31, 2009, 2008 and 2007 was as follows
(in millions):
Year ended December 31,
2009 2008 2007
Consumer ............................ £3,083.1 81.0% £3,029.0 80.2% £3,087.3 80.4%
Business ............................. 580.8 15.3 626.0 16.6 641.8 16.7
Content ............................. 140.5 3.7 121.8 3.2 109.5 2.9
£3,804.4 100.0% £3,776.8 100.0% £3,838.6 100.0%
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