By : Chris Tribbey | Posted: 03 Mar 2010
Replicator Cinram reported a loss of $20.9 million for the fourth quarter of 2009, compared with a loss of $23.1 million during the same quarter of 2008 (ended Dec. 31).
For all of 2009, the company reported a loss of $31.5 million.
Revenue was down in every area of Cinram’s business, including home video, video games and CDs, with the company reporting fourth quarter revenue of $508.1 million, down 9% from the $556.8 million it took in during the fourth quarter of 2008. For all of 2009, revenue was down 15% to $1.46 billion.
“While 2009 saw an erosion in revenue largely in line with our expectations, the strong operating results reflect the efforts of a number of management initiatives within the period,” CEO Steve Brown said in a statement.
Warner Home Video, which accounted for 32% of Cinram’s business for 2009, Feb. 1 announced it would move its business elsewhere as of July 31, 2010. Brown called Warner’s decision “obviously regrettable,” but reassured investors that “the initiatives undertaken this past year will continue to drive Cinram forward in a market which we forecast to still have a 10-to-15 year future.”
“Physical media is still being embraced by the consumer markets, and its migration to digital download and other non-physical strategies have all been far slower than many previously forecasted,” he said.
For the fourth quarter, home video revenue was down 2% to $412.3 million, though Blu-ray Disc revenue was up, at $7.8 million compared with $5.1 million during the same quarter of 2008. The company replicated 426.7 million DVDs during the quarter, down from 435 million during the same quarter of 2008.