Virgin Media 2010 Annual Report Download - page 102

VIRGIN MEDIA INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1—Organization and Business
Virgin Media Inc. is a Delaware corporation and is publicly-traded on the NASDAQ Global Select Market
in the United States and the London Stock Exchange in the United Kingdom. We conduct our operations
primarily through direct and indirect wholly owned subsidiaries.
We are a leading provider of entertainment and communications services in the U.K., offering “quad-play”
broadband internet, television, mobile telephony and fixed line telephony services. We are one of the U.K.’s
largest providers of residential broadband internet, pay television and fixed line 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, 2010, we provided service to approximately 4.8 million residential cable
customers on our 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 1.9 million prepay mobile customers and
approximately 1.2 million contract mobile customers over third party networks.
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 have an interest in the UKTV television channels through our joint ventures with
BBC Worldwide.
On June 4, 2010, we announced the sale to British Sky Broadcasting Limited, or BSkyB, of our television
channel business known as Virgin Media TV. Virgin Media TV’s operations comprised our former Content
segment and have been treated in the consolidated financial statements as discontinued operations through
July 12, 2010, which is the date the sale was completed following approval from regulators in Ireland. Our
internal reporting structure and the related financial information used by management and the chief operating
decision maker reflect changes we have made after the announcement of the sale of Virgin Media TV. Following
this announcement, we have two reporting segments, Consumer and Business, as described below:
•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.
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 April 1, 2009, we sold our sit-up reporting unit, which was formerly included within our Content
segment. These consolidated financial statements reflect sit-up as discontinued operations and we have
retrospectively adjusted the statement of operations, cash flows and shareholders’ equity for the year ended
December 31, 2008.
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