Cinram posts higher Q3 profit
Reports earnings of $9.5 milTORONTO -- Despite sliding sales of raw DVD units in a volatile home entertainment market, cost-cutting measures helped Canadian blank multimedia product maker and distributor Cinram International Income Fund post a higher third-quarter profit Tuesday.
Toronto-based Cinram posted earnings of $9.5 million to Sept. 30, against a year-earlier profit of $2 million, as overall revenue fell 15% to $351.2 million, from $411.7 million in 2008.
As the home entertainment market falters at the retail level in a challenging economy, Cinram faced lower home video revenue from decreases in both DVD units shipped and average selling prices.
DVDs made up $276.7 million, or 79% of total revenue, down from $298.4 million in 2008. Cinram also secured $42 million in CD revenue, or 12% of its product sales, down from a year-earlier $57 million.
The Canadian manufacturer also recorded fewer sales of video games and other product during the economic downturn.