Virgin Media 2014 Annual Report Download - page 59

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Overview
We are a subsidiary of Liberty Global that provides digital cable, broadband internet, fixed-line telephony and mobile services
in the U.K. to both residential and B2B customers. We are one of the U.K.’s largest providers of residential digital cable, broadband
internet and fixed-line telephony services in terms of the number of customers. We believe our advanced, deep-fiber cable access
network enables us to offer faster and higher quality broadband services than our digital subscriber line (DSL) competitors. As a
result, we provide our customers with a leading next generation broadband service and one of the most advanced interactive TV
services available in the U.K. market.
We completed a small acquisition during the first three months of 2014 that has an impact on the comparability of our 2014
and 2013 results of operations.
As of June 30, 2014, our network passed 12,539,700 homes and served 12,294,300 revenue generating units (RGUs), consisting
of 4,415,500 broadband internet subscribers, 4,145,100 fixed-line telephony subscribers and 3,733,700 digital cable subscribers.
We also served 3,041,300 mobile subscribers.
We lost 17,000 and 34,000 RGUs on an organic basis during the three months ended June 30, 2014 and 2013, respectively.
The organic RGU loss during the three months ended June 30, 2014 is attributable to declines in our digital cable, fixed-line
telephony and broadband internet services of 14,900, 1,800 and 300 RGUs, respectively.
Including the effect of an acquisition, we added a total of 32,600 RGUs during the six months ended June 30, 2014. Excluding
the effect of this acquisition (RGUs added on the acquisition date), but including post-acquisition date RGU additions, we added
17,900 RGUs on an organic basis during the six months ended June 30, 2014, as compared to 9,500 RGUs that we lost on an
organic basis during the six months ended June 30, 2013. The organic RGU growth during the six months ended June 30, 2014
is attributable to the growth of our broadband internet services and fixed-line telephony services, which added 34,500 and 3,000
RGUs, respectively. The growth of our broadband internet and fixed-line telephony services was partially offset by a decline in
our digital cable services of 19,600 RGUs.
We added 42,800 mobile subscribers during the three months ended June 30, 2014, as compared to 29,800 mobile subscribers
during the three months ended June 30, 2013. The organic growth during the three months ended June 30, 2014 is attributable to
the net impact of growth in our postpaid mobile services, which added 62,600 subscribers, and a decline of our prepaid mobile
services of 19,800 subscribers.
We added 51,100 mobile subscribers during the six months ended June 30, 2014, as compared to a loss of 10,900 mobile
subscribers during the six months ended June 30, 2013. The organic growth during the six months ended June 30, 2014 is attributable
to the net impact of growth in our postpaid mobile services, which added 141,200 subscribers, and a decline of our prepaid mobile
services of 90,100 subscribers.
LG/VM Transaction
Virgin Media became a wholly-owned subsidiary of Liberty Global as a result of the LG/VM Transaction, pursuant to which
Liberty Global became the publicly-held parent company of the successors, by merger of Old Virgin Media and LGI.
As a result of Liberty Global’s push-down of its investment basis in Virgin Media arising from the LG/VM Transaction, a
new basis of accounting was created on June 7, 2013. In the following discussion, the results of operations and cash flows of Old
Virgin Media for the periods ended on or prior to June 7, 2013 are referred to as “Predecessor” consolidated financial information
and the results of operations and cash flows of Virgin Media for periods beginning on June 8, 2013 and the financial position of
Virgin Media as of June 7, 2013 and subsequent balance sheet dates are referred to as “Successor” consolidated financial information.