Virgin Media 2011 Annual Report Download - page 68

We accounted for our interest in UKTV under the equity method and recognized a share of net income of
£22.8 million and £16.5 million in the years ended December 31, 2010 and 2009, respectively. At December 31,
2010, our investment in UKTV was carried on the consolidated balance sheet at £359.2 million, which included
outstanding loans totaling £120.4 million.
UKTV received financing through loans from Virgin Media, which totaled £120.4 million at December 31,
2010. These loans effectively acted as a revolving facility for UKTV. We received cash payments from UKTV in
the form of loan capital repayments of £8.7 million for the year ended December 31, 2010. We received
dividends, interest payments and payments for consortium tax relief from UKTV totaling £25.8 million during
2010.
Additionally, we recorded a gain of £1.2 million for the year ended December 31, 2010 from the winding up
of our investment in our former joint venture, Setanta Sports News. Setanta Sports News ceased broadcasting in
June 2009 and has now been wound up. We recorded a loss of £2.4 million for the year ended December 31,
2009.
Consolidated Statement of Cash Flows
Years Ended December 31, 2011 and 2010
For the year ended December 31, 2011, cash provided by operating activities increased to £1,149.1 million
from £1,037.6 million for the year ended December 31, 2010. This increase was primarily attributable to the
improvements in operating results, offset by changes in operating assets and liabilities. For the year ended
December 31, 2011, cash paid for interest, exclusive of amounts capitalized, decreased to £435.2 million from
£438.8 million during the same period in 2010. This decrease was primarily as a result of a lower level of debt at
lower average interest rates during the year ended December 31, 2011, along with differences in the timing of the
interest payments on our senior credit facility and senior notes. The change in the timing of the interest payments
on our senior notes is as a result of the refinancing activity undertaken during the years ended December 31,
2011 and 2010.
For the year ended December 31, 2011, cash used in investing activities of £314.7 million was principally
comprised of purchases of fixed assets totaling £656.7 million, partially offset by the net proceeds received from
the sale of our equity accounted investment in the UKTV companies and the related principal repayment on loans
to equity investments. For the year ended December 31, 2010, cash used in investing activities of £411.4 million
was principally comprised of purchases of fixed assets totaling £628.4 million, partially offset by the proceeds
from the sale of Virgin Media Television and disposal of 42 properties.
Cash used in financing activities for the year ended December 31, 2011 was £1,001.1 million compared with
cash used in financing activities of £551.8 million for the year ended December 31, 2010. For the year ended
December 31, 2011, the principal uses of cash were the partial repayments of our previous senior credit facility
and repayment of our 9.125% U.S. dollar senior notes due 2016 totaling £1,315.8 million, capital lease payments
totaling £79.2 million and purchases of our own shares totaling £635.0 million. The principal components of cash
provided by financing activities were new borrowings from the issuance of our senior notes due 2021, net of
financing fees, of £977.0 million, and the proceeds from the settlement of cross currency interest rate swaps of
£65.5 million. For the year ended December 31, 2010, the principal uses of cash were the partial repayments
under our previous senior credit facility and repayment of our senior notes due 2014 totaling £3,186.6 million,
capital lease payments totaling £53.2 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 for the year ended December 31, 2010
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.
Cash flows from discontinued operations for the years ended December 31, 2011 and 2010 are attributable
to Virgin Media TV.
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