Cinram's first quarter 2008 DVD replication revenue down 25%

Global optical disc manufacturer Cinram reported first quarter 2008 revenue of $406.6 million, down from $443.9 million in 2007. Earnings before tax plummeted to $39.3 million in 2008 from $69.6 million in the first quarter of 2007.

First quarter home video revenue (which includes replication and distribution of DVDs and high-definition discs) was down 19 per cent to $249 million from $307.5 million in 2007 as a result of a decline in DVD replication revenue due to lower volumes and prices.

Cinram recorded DVD replication revenue of $180.2 million from a volume of 262 million DVDs in the first quarter of 2008, down 14 per cent from 305 million units in 2007 which generated revenue of $242.0 million in 2007 – a 25% fall. Revenue per replicated disc averaged $0.69 this year, down from $0.81 last year.

High-definition disc replication revenue increased to $4.3 million in the first quarter of 2008 from $1.9 million in the comparable 2007 period.

First quarter North American revenue was down 16 per cent to $280.3 million from $333 million in 2007, as the increase in revenue from the Ditan acquisition and the new handset distribution business was more than offset by the performance of the core home video business and the decline in Giant Merchandising's sales. North America accounted for 69 per cent of first quarter consolidated revenue compared with 75 per cent in 2007.

European revenue increased 14 per cent in the first quarter to $126.4 million from $110.9 million in 2007, driven by stronger home video sales that were partially offset by lower CD distribution revenue. First quarter European revenue represented 31 per cent of consolidated sales compared with 25 per cent in the first quarter of 2007.

"The decline in our first quarter EBITA compared to the first quarter of 2007 is not indicative of our outlook for the full year given that we were up against an unusually strong comparable period," explained Cinram CEO Dave Rubenstein.

Story filed 12 May 2008

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