Ability to offer innovative, fast, and advanced broadband and content offerings based on a strong network, which passes more than one-half of all U.K. homes. Capability to offer quadruple-play services (fixed and mobile telephony, TV, and broadband Internet). A long-term capital structure with no significant debt amortization until 2015 following a successful refinancing. Intense competition from Internet, telephony, and TV providers, and lukewarm economic outlook in the U.K. High gross debt, with total adjusted debt to EBITDA of about 4.6x on March 31, 2010. Limited top-line growth and modest discretionary cash flow generation, which reduce deleveraging prospects. Reliance on a competitor for some key TV content, although the group operates its own content division. The ratings on Virgin Media Inc.
