Cinram reported an increase in consolidated revenue to $2,098.1 million in 2005, compared to $2,026.6 million in the prior year. Net earnings increased to $82.4 million, compared to $75.8 million or $1.34 per share in 2004.

In 2005, DVD revenue increased four percent to $1,063.0 million, compared to $1,025.4 million in the prior year. The increase was mainly due to higher unit volumes, partially offset by lower selling prices. In 2005, DVD revenue accounted for approximately 51 percent of consolidated revenue, unchanged compared to the prior year.

Cinram's CD revenue increased three percent to $322.0 million, compared to $313.4 million in the prior year, mainly due to the full-year contribution of the EMI business in the United States. Audio CDs accounted for approximately 15 percent of Cinram's 2005 consolidated revenue, unchanged compared to the prior year.

Distribution revenue increased to $290.3 million in 2005, compared to $208.8 million in the prior year. The increase was primarily due to the full-year contribution of the business acquired from The Entertainment Network in the United Kingdom and a new contract in Europe. Distribution revenue represented approximately 14 percent of 2005 consolidated revenue, compared to 10 percent in the prior year.

North American revenue increased one percent to $1,556.3 million in 2005, compared to $1,534.2 million in the prior year, which was attributable to increased audio CD and distribution revenues, offset by lower VHS cassette and merchandising revenues. In 2005, North American revenue represented 74 percent of consolidated revenue

In Europe, revenue in 2005 increased 10 percent to $541.8 million, compared to $492.4 million for the prior year, due to increased DVD and distribution revenues, partially offset by lower audio CD and VHS video
cassette revenues. European revenue represented 26 percent of consolidated revenue in 2005.

Story filed 05.03.06