Toronto-based international optical disc replicator Cinram reported a 10% fall in overall results in the fourth quarter 2008 compared to the same period in 2007. However, the company's $25-million net loss from continuing operations for the Q4 2008 was in sharp contrast with the net loss of $314.6 million it recorded in Q4 2007.

Cinram recorded a 10% decrease in revenues to $598 million in the fourth quarter 2008 from $666.6 million in the fourth quarter of 2007. Gross earnings were $117.1 million in 2008, down from $126.4 million in the fourth quarter of 2007.

For the year ended 31 December 2008, Cinram reported a one per cent increase in revenues to $1.90 billion from $1.88 billion in 2007 as a result of DVD revenues associated with the addition of Universal Pictures International Entertainment in Europe, combined with additional revenue from the Wireless segment and the Ditan business. Though this was offset by lower DVD unit sales combined with lower average selling prices for DVDs, CDs and print product.

Fourth quarter Home Video revenues (which include replication and distribution of DVDs and high-definition discs) were down 15% to $388 million from $454.5 million in 2007 due to lower DVD replication volumes in North America combined with lower selling prices globally.

The company replicated 435 million DVDs in the last quarter of 2008 – including units associated with the DVD contract signing with Universal Europe in 2008 – compared to 474.4 million units in 2007. High-definition disc replication revenues decreased to $5.1 million in Q4 2008 from $12.3 million in the comparable 2007 period; the 2007 figure included revenues from the now-defunct HD DVD format.

CD segment revenues (which includes replication and distribution of CDs) were down 29% in the fourth quarter to $47 million from $66.5 million in 2007 in line with a corresponding decline in replication volumes.

Revenues from the Video Game segment were up 39% to $49.3 million in Q4 2008 from $35.4 million in 2007 reflecting strong organic growth in this market.

Fourth quarter North American revenue decreased 23% to $346.9 million from $450.3 million in 2007, principally as a result of lower DVD volumes and prices. North America accounted for 58% of fourth quarter consolidated revenues compared with 68% in 2007.

By contrast, European revenues were up 16% in the fourth quarter to $251.1 million from $216.3 million in 2007, principally due to the new replication and distribution agreement with Universal and the related increase in printing sales. Fourth quarter European revenues represented 42% of consolidated sales compared with 32% in the fourth quarter of 2007.

On 13 February, the CEO David Rubenstein announced his resignation after more than fifteen years with Cinram. He will continue to serve until the end of this month.

Story filed 09.03.09