Cinram Posts Quarterly, Yearly Losses2 Mar, 2009 By: Chris Tribbey
Replicator Cinram saw a 10% decrease in revenue and losses of $25 million for the fourth quarter of 2008, compared to a loss of $316 million during the same period in 2007. For the year, Cinram posted a loss of $33.8 million.
CEO David Rubenstein is resigning, the company announced, and will leave the company at the end of March. The company did not hold an earnings call when it released its results March 2.
“The decline in EBITA (earnings before interest, taxes and amortization) was the result of lower average selling prices for DVDs, which coupled with lower unit volumes are the two main drivers of Cinram’s profit margins,” Rubenstein said.
Home video revenue for the company was down 15% to $388 million for the quarter, compared to $454 million in the prior-year period, mostly due to lower DVD replication in North America. Cinram reported replicating 435 million DVDs in the fourth quarter, down from nearly 475 million in the same period of 2007. Blu-ray Disc replication generated $5.1 million in the fourth quarter of 2008, compared to $12.3 million in the same period in 2007, when Cinram was replicating HD DVDs.