Cinram sees Q4 bounce
EmptyTORONTO -- Despite reduced revenues on soft DVD sales, Canadian multimedia productmaker Cinram International Income Fund on Monday posted higher fourth-quarter earnings.
Toronto-based Cinram recorded $48 million in earnings for the three months ending Dec. 31, against a profit of $38.2 million in 2005. Fourth-quarter revenue for 2006 stood at $616.7 million, against $650 million a year-earlier, as North American revenue fell 3% to $437.7 million on lower CD and merchandising sales. European revenues meanwhile fell 9% to $179.0 million as falling DVD and CD revenues offset increased distribution revenues.
Cinram International also indicated that it will have to restate and refile its results for the first nine months of 2006 to account for a non-cash charge of $49 million, in part from the "hedge ineffectiveness of U.S. dollar denominated debt."
Cinram International makes raw compact discs, DVD and other product for the major studios, record labels and other customers in the entertainment industry.