August 7, 2008 / 10:04 PM / 10 years ago

Cinram loss shrinks as DVD copying revenue rises

TORONTO (Reuters) - Cinram International Income Fund CRW_u.TO, the world’s biggest provider of prerecorded media products, posted a smaller quarterly loss on Thursday as revenue rose because the company copied more DVDs.

An official steps on pirated CDs and DVDs before they are to be destroyed in Nanjing, Jiangsu province April 14, 2007. REUTERS/Sean Yong

Cinram, which replicates CDs, DVDs and distributes video games, said its net loss was $7.1 million, or 12 cents a unit in the second quarter. That was better than the loss of $26.6 million, or 45 cents a unit, in the same period a year earlier.

Cinram won a DVD replication and distribution deal with Universal Pictures (GE.N) in Europe during the quarter, which helped it increase sales, it said.

Total revenue rose to $412.8 million from $345.1 million, Cinram said.

The company said it replicated 246 million DVDs in the quarter, up 18 percent from 209 million a year earlier.

CD segment revenue rose to $54 million from $49.6 million a year earlier as the company changed its product mix. CD sales are down as more people turn to digital — and sometimes illegal — downloads of music.

Video game revenue shot to $28.9 million from $9.5 million, reflecting “strong organic growth” and the inclusion of a full quarter’s worth of business from Ditan, a distribution firm acquired by Cinram in April 2007.

Cinram reported its results after markets closed. During the day, its units fell 3 Canadian cents to close at C$3.99 on the Toronto Stock Exchange. A year ago, the units were worth


($1=$1.05 Canadian)

Reporting by Wojtek Dabrowski; editing by Peter Galloway

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