Virgin Media 2010 Annual Report Download - page 76

UKTV receives financing through loans from Virgin Media, which totaled £129.3 million at December 31,
2009. These loans effectively act as a revolving facility for UKTV. We received cash payments from UKTV in
the form of loan capital repayments of £12.5 million for the year ended December 31, 2009. We received
dividends, interest payments and payments for consortium tax relief from UKTV totaling £8.6 million during
2009.
Additionally, we recorded a loss of £2.4 million and £4.3 million in the years ended December 31, 2009 and
2008, respectively, from our investment in our joint venture with Setanta Sports News. Setanta Sports News
ceased broadcasting in June 2009 and we are in process of winding up this business.
Consolidated Statement of Cash Flows
Years Ended December 31, 2010 and 2009
For the year ended December 31, 2010, cash provided by operating activities increased to £1,037.6 million
from £893.5 million for the year ended December 31, 2009. This increase was primarily attributable to the
improvements in operating results. For the year ended December 31, 2010, cash paid for interest, exclusive of
amounts capitalized, increased to £438.8 million from £404.2 million during the same period in 2009. The
increase was primarily due to differences in the timing of interest payments on senior credit facility and senior
notes.
For the year ended December 31, 2010, cash used in investing activities decreased to £411.4 million from
£571.3 million for the year ended December 31, 2009. The decrease was primarily due to net proceeds received
from the disposal of Virgin Media Television, totaling £167.4 million, partially offset by increased purchases of
fixed assets, which increased to £628.4 million for the year ended December 31, 2010 from £568.0 million for
the year ended December 31, 2009.
Cash used in financing activities for the year ended December 31, 2010 was £551.8 million compared with
cash used in financing activities of £69.7 million for the year ended December 31, 2009. For the year ended
December 31, 2010, the principal uses of cash were the partial repayments under our previous senior credit
facility, our senior notes due 2014 and capital lease payments, totaling £3,239.8 million, purchases of our own
shares totaling £161.5 million and the purchase of conversion hedges relating to the shares issuable under our
convertible senior notes totaling £205.4 million. The principal components of cash provided by financing
activities were new borrowings from the issuance of our senior notes due 2016 and our senior notes due 2019, net
of financing fees, of £3,072.0 million. For the year ended December 31, 2009, the principal uses of cash were the
partial repayments under our senior credit facility and our senior notes due 2014 and capital lease payments,
totaling £1,737.4 million, and the principal components of cash provided by financing activities were new
borrowings from the issuance of our senior notes due 2016 and our senior notes due 2019, net of financing fees,
of £1,610.2 million. See further discussion under “Liquidity and Capital Resources—Senior Credit Facility”.
Cash flows from discontinued operations for the year ended December 31, 2010 are attributable to Virgin
Media TV. Cash flows from discontinued operations for the years ended December 31, 2009 are attributable to
Virgin Media TV and sit-up. We do not believe that the disposal of Virgin Media TV will have a material impact
on our liquidity.
Years Ended December 31, 2009 and 2008
For the year ended December 31, 2009, cash provided by operating activities increased to £893.5 million
from £775.7 million for the year ended December 31, 2008. This increase was attributable to the improvements
in operating results and lower cash interest payments. For the year ended December 31, 2009, cash paid for
interest, exclusive of amounts capitalized, decreased to £404.2 million from £515.8 million during the same
period in 2008. This decrease resulted from lower interest rates, lower debt levels due to repayments in 2008 and
differences in the timing of interest payments under our senior credit facility.
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