12.7 million marketable homes passed by the cable network, or about half the U.K. homes; Capability to offer quadruple play (fixed and mobile telephony, TV, and broadband internet); Adequate profitability, with an EBITDA margin in the mid-30s; and Strengthening cash flow generation underpinned by restructuring. Intense competition from Internet, telephony, and TV providers; Material leverage, with total adjusted debt to EBITDA, pro forma for the merger with Telewest Global Inc., of about 5.2x at Dec. 31, 2006; Weak, but stable performance from the business division; and Reliance on a competitor for some key TV content, although the group operates its own content division. The ratings on Virgin Media Inc. (VMI) are constrained by the challenging and very competitive U.K. operating
