Cinram earnings take Q3 dive
EmptyTORONTO -- Softer DVD and CD sales led Cinram International Income Fund to post sharply lower third-quarter earnings Thursday.
Toronto-based Cinram, which makes DVDs and other raw multimedia product for the entertainment industry, also said it has hired a financial adviser to "review strategic and financial alternatives" in the wake of last week's decision by Ottawa to eventually tax income trusts.
Cinram posted $18.3 million in earnings for the three months ending Sept. 30, against a profit of $35.5 million in 2005. That came on revenues of $477 million during the third quarter, against a year-earlier $544.6 million.
Cinram gave few details on its upcoming strategic review beyond indicating a financial adviser would assess Cinram's business plan and growth strategy.
The move follows the Canadian government on Nov. 1 signalling that it will eventually tax income trust payouts to shareholders.