* Q2 loss 1 cent per unit vs 12 cents a year earlier
* Revenue slumps 22 pct to $301 million (In U.S. dollars unless noted)
TORONTO, Aug 11 (Reuters) - Cinram International Income Fund CRW_u.TO posted a smaller quarterly loss on Tuesday thanks in part to debt-repurchase gains, but the maker of prerecorded CDs and DVDs said revenue plunged more than 20 percent.
Cinram said it lost $737,000, or 1 cent per unit, in the three months ended June 30. That was better than a loss of $7.1 million, or 12 cents a unit, a year earlier.
The quarter included a $13.6 million gain on the repurchase of debt, Cinram said.
However, its revenue sank to $301 million, down 22 percent from $386.3 million a year earlier, the company said.
Its home video revenue dropped 18 percent to $224 million as volumes and prices dropped. CD revenue sagged 34 percent to $39.4 million, Cinram said.
Cinram and other hard-media manufacturers have seen their business eroded as digital downloads of music and movies gain popularity, leading to lower sales of discs.
The Toronto-based company reported its results after markets closed. During the day, its units fell 9 Canadian cents to close at C$1.66 on the Toronto Stock Exchange.
$1=$1.10 Canadian Reporting by Wojtek Dabrowski; editing by Rob Wilson