Cinram posts profit while losing Warner biz
Canadian replicator posts $7.9 mil Q1 profitTORONTO -- Canadian replicator Cinram International Income Fund, a key industry barometer for DVD and Blu-Ray sales, swung to a first quarter profit of $7.9 million, against a year-earlier $17.6 million loss.
Toronto-based Cinram recorded flat revenue of $301.5 million for the quarter to March 31, just down from $303.1 million in 2009. Revenue from DVD and Blu-Ray replication and distribution was $240.6 million, from $220.6 million in 2009, on higher North American and European shipments and a favorable currency exchange swing.
But that revenue gain comes ahead of Cinram on July 31 losing to Technicolor a key contract to replicate and distribute DVD and Blu-ray discs for Warner Bros. Video out of Nashville.
The Warner Bros. home entertainment account represented 28% of Cinram's overall revenue in 2009.
The Canadian company, which provides pre-recorded multimedia products and distribution services to Hollywood studios, continues to service Universal Pictures, Lionsgate and Twentieth Century Fox, including the home video version of James Cameron's blockbuster "Avatar."
But Cinram finds itself scrambling to make up for lost business from Warner Bros. just as video game and CD revenue continues trailing off due to industry softness and a shift of entertainment content to digital platforms, including Apple's iTunes store.
Home video revenue represented 80% of Cinram's total business in the first quarter, against 73% during the same period of 2009.
Cinram replicated 243.6 million DVDs in the first quarter, against 215.6 million units in 2009, and Blu-ray disc replication revenue doubled to $8.9 million, from $4.4 million in 2009.