Cinram losses narrow despite revenue dip
EmptyTORONTO -- Canadian multimedia product maker Cinram International Income Fund on Tuesday reported a narrowing second-quarter loss on lower DVD and compact disc revenue.
Toronto-based Cinram posted a loss of $26.6 million for the three months ending June 30, compared with a loss of $67.3 million in 2006. Second-quarter revenue came to $375.8 million, down from a year-earlier $399 million.
Cinram, which makes prerecorded media products for Hollywood studios and other entertainment customers, said seasonal factors led to lower prices paid for its product and a drop in DVD and CD unit volumes.
Cinram made 209.5 million raw DVDs during the second quarter, down 6% from 2006 levels, and 97.8 million CDs, off 18% from last year's volume, the company reported.
To offset its exposure to traditional media, Cinram in early May diversified into video game product, paying $50 million for U.S. interactive software company Ditan Corp. and, in June, unveiling a multiyear agreement to distribute handsets and accessories for Motorola.