Virgin Media 2011 Annual Report Download - page 96

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 entertainment and communications business, being a “quad-play” provider of broadband
internet, television, mobile telephony and fixed line telephony services that offer a variety of entertainment and
communications services to residential and commercial customers throughout the U.K. 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, 2011, 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 1.5 million prepay mobile customers and
approximately 1.5 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.
Our reporting segments are based on our method of internal reporting along with the criteria used by our
chief executive officer, who is our chief operating decision maker (CODM), to evaluate segment performance,
the availability of separate financial information and overall materiality considerations. 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 July 12, 2010, we completed the sale of our television channel business known as Virgin Media TV to
BSkyB. Virgin Media TV’s operations comprised our former Content segment. These consolidated financial
statements reflect Virgin Media TV as discontinued operations and we have retrospectively adjusted the
consolidated statements of operations, cash flows and shareholders’ equity for the year ended December 31,
2009.
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