Cinram Profit Plummets11 Nov, 2008 By: Erik Gruenwedel
Despite replicating 1 million more DVDs, Cinram International reported third-quarter (ended Sept. 30) net income of $1.5 million, down 95% from income of $34.8 million during the previous year period.
The Toronto-based replication company said DVD replication revenue fell 1% to $284 million from $286 million due in part to lower retail selling prices and high-definition replication revenue declining nearly 58% to $2.2 million from $5.2 million last year when it also replicated rival format HD DVD.
Cinram said it replicated 300 million DVD discs, representing 61% of its business, in the quarter compared to 299 million (64%) last year.
The company reported a 32% increase in video game disc revenue to $26.5 million (6% of business) from $20.1 million (4%) last year.
Music CD replication revenue fell 21% to $52.2 million (11% of business), compared to $65.3 million (15%) last year.
Overall revenue increased 3.7% to $467 million from $450 million last year.