Cinram Q1 Loss Tops $17M1 May, 2009 By: Erik Gruenwedel
Lower-priced DVDs and fewer unit shipments contributed to Cinram International posting a first quarter (ended March 31) loss of $17.6 million, compared to income of $7.6 million during the same period a year ago.
The Toronto-based replication company said revenues fell 19% to $303.2 million from $373.8 million last year.
Home-video revenue, which includes replication and distribution of DVDs and Blu-ray Disc, was down 21% to $220.6 million from $279.5 million in 2008 due to lower DVD replication volumes in North America combined with lower selling prices globally.
Cinram replicated 215.6 million DVDs in the quarter, including units associated with the DVD contract signed with Universal Europe in 2008, compared to 262 million units in 2008.
Blu-ray Disc replication revenue increased to $4.4 million from $4.3 million in the comparable 2008 period.
Music CD revenue was down 30% in the first quarter to $37.1 million from $52.8 million in 2008 in line with a corresponding decline in replication volumes.
Revenue from the video game replication was up 8% to $23.6 million in the quarter from $21.8 million in 2008, reflecting organic growth in the market.
As previously reported, CEO David Rubenstein resigned as a trustee and officer of Cinram, effective March 31.