While recording a third-quarter 4% increase in revenue to $467.3 million from $450.5 million in 2007, Canadian replicator Cinram's net earnings fell dramatically to $1.5 million compared with $34.8 million in the same period in 2007. The company’s earnings before interest, taxes and amortization (EBITA) were $59.0 million in 2008, down from $65.8 million the third quarter of 2007.

Third quarter home video revenues (which includes replication and distribution of DVDs and high-definition discs) were down 1% to $284.2 million from $286.3 million in 2007 as the incremental revenue from higher DVD replication volumes in Europe was offset by lower average selling prices in all geographic areas.

Cinram replicated 300 million DVDs in the third quarter of 2008 up from 299 million units in 2007. High-definition disc replication revenue decreased to $2.2 million in the third quarter of 2008 from $5.2 million in the comparable 2007 period; the 2007 figure included revenue from HD DVD.

"Cinram's core business has shown resilience in the face of a turbulent macro-economic environment,” said Cinram chief executive officer Dave Rubenstein. “During the third quarter, we benefited from strong organic growth in our video game distribution segment and the expansion of our core business in Europe."

CD segment revenue (which includes replication and distribution of CDs) was down 20 per cent in the third quarter to $52.2 million from $65.4 million in 2007 in line with a corresponding decline in replication volumes.

While third-quarter North American revenues decreased 6% to $304.3 million from $323.4 million in 2007, European revenues were up 28% to $163.0 million from $127.1 million in 2007, principally due to the new replication and distribution agreement with Universal and increased printing sales. As a result North America accounted for 65% of consolidated revenues compared with 72% in 2007, while conversely, Europe’s share of company revenues grew to 35% from 28% the same period last year.

Story filed 17.11.08