Virgin Media 2014 Annual Report Download - page 57

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis, which should be read in conjunction with our condensed consolidated financial
statements and the discussion and analysis included in our 2013 annual report, is intended to assist in providing an understanding
of our financial condition, changes in financial condition and results of operations and is organized as follows:
• Forward-Looking Statements. This section provides a description of certain factors that could cause actual results or
events to differ materially from anticipated results or events.
• Overview. This section provides a general description of our business and recent events.
• Material Changes in Results of Operations. This section provides an analysis of our results of operations for the three
and six months ended June 30, 2014 and 2013.
• Material Changes in Financial Condition. This section provides an analysis of our corporate and subsidiary liquidity,
condensed consolidated statements of cash flows and contractual commitments.
The capitalized terms used below have been defined in the notes to our condensed consolidated financial statements. In the
following text, the terms “we,” “our,” “our company” and “us” may refer, as the context requires, to Virgin Media (or Old Virgin
Media) or collectively to Virgin Media (or Old Virgin Media) and its subsidiaries.
Unless otherwise indicated, convenience translations into pound sterling are calculated, and operational data (including
subscriber statistics) are presented, as of June 30, 2014.
Forward-Looking Statements
Certain statements in this quarterly report constitute forward-looking statements. To the extent that statements in this quarterly
report are not recitations of historical fact, such statements constitute forward-looking statements, which, by definition, involve
risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. In
particular, statements under Management’s Discussion and Analysis of Financial Condition and Results of Operations may contain
forward-looking statements, including statements regarding our business, product, foreign currency and finance strategies, our
property and equipment additions, subscriber growth and retention rates, competitive, regulatory and economic factors, the maturity
of our markets, the anticipated impacts of new legislation (or changes to existing rules and regulations), anticipated revenue
decreases or cost increases, liquidity, credit risks, foreign currency risks and target leverage levels. Where, in any forward-looking
statement, we express an expectation or belief as to future results or events, such expectation or belief is expressed in good faith
and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or
accomplished. In addition to the risk factors described in our 2013 annual report, the following are some but not all of the factors
that could cause actual results or events to differ materially from anticipated results or events:
• economic and business conditions and industry trends in the markets in which we operate;
• the competitive environment in the cable television, broadband and telecommunications industries in the U.K., including
competitor responses to our products and services;
• fluctuations in currency exchange rates and interest rates;
• instability in global financial markets, including sovereign debt issues in the EU and related fiscal reforms;
• consumer disposable income and spending levels, including the availability and amount of individual consumer debt;
• changes in consumer television viewing preferences and habits;
• consumer acceptance of our existing service offerings, including our digital cable, broadband internet, fixed-line telephony,
mobile and B2B service offerings, and of new technology, programming alternatives and other products and services that
we may offer in the future;
• our ability to manage rapid technological changes;