Reporting on its third quarter financial results of 2009, replicator Cinram recorded a 15% decrease in overall revenue to $351.2 million from $411.7 million in the corresponding period of 2008. Excluding the effects of foreign exchange, revenue decreased by 12%.

For the first nine months of 2009, revenue decreased by 18% to $955.4 million from $1,171.7 million in the same period in 2008 due to lower home video revenues resulting from decreases in both units shipped and average selling prices.

Gross earnings amounted to $42.8 million during the third quarter of 2009, down from $56.9 million in the same quarter of 2008. For the first nine months of 2009, earnings were $92.7 million compared to $140.9 million in 2008 - the result of lower average selling prices for DVDs coupled with lower unit volumes.

Focusing on the Home Video revenue (which includes replication and distribution of DVDs and high-definition discs), the third-quarter 2009 figure was down 7% to $276.7 million from $298.4 million in the prior year third quarter due to lower DVD replication volumes in North America combined with lower selling prices.

Cinram replicated 299 million DVDs in the third quarter of 2009, a slight decrease from 300 million units in 2008. High-definition disc replication revenue increased to $4.7 million in the third quarter of 2009 from $2.3 million in the comparable 2008 period.

Revenue from the Video Game segment was down 31% to $18.2 million in the third quarter of 2009 from $26.5 million in 2008 reflecting continued consumer spending declines in this segment of the market.

As for the geographic breakdown, third quarter of 2009 North American revenue decreased 20% to $199.6 million from $248.6 million in 2008, principally as a result of lower DVD volumes and prices. North America accounted for 57% of third quarter consolidated revenue compared with 60% in 2008.

European revenue was down 7% in the third quarter to $151.6 million from $163 million in 2008, due to lower CD unit sales from our German operations combined with the foreign currency translation impact.
Excluding the impact of foreign currency translation, European revenue decreased by 2% in the third quarter of 2009 compared to 2008. Third quarter European revenue represented 43% of consolidated sales compared with 40% for the same period last year.

Story filed 21.11.09