Canadian replicator Cinram’s second quarter 2009 results fell 22% to $301 million compared with $386.3 million in the second quarter of 2008. For the first six months of 2009, revenue dropped to $604.2 million from $760.1 million in the same period in 2008.

Earnings before interest, taxes and amortisation was $23.1 million during the second quarter of 2009, down from $35.8 million in the same quarter of 2008. The decline in EBITA, said the company, was the result of lower average selling prices for DVDs, which, coupled with lower unit volumes, are the main drivers of Cinram's profit margins.

For the first six months of 2009, EBITA was $49.9 million compared with $84 million in 2008. The company reported net earnings from continuing operations for the second quarter of 2009 of $7.3 million compared with a net loss from continuing operations of $4.1 million in 2008.

Second quarter Home Video revenue (which includes replication and distribution of DVDs and high-definition discs) was down 18% to $224 million from $272.3 million in the 2008 second quarter due to lower DVD replication volumes in North America combined with lower selling prices globally.

Cinram replicated 224 million DVDs in the second quarter of 2009, compared to 246 million units in 2008. High-definition disc replication revenue increased to $5.5 million in the second quarter of 2009 from $5.1 million in the comparable 2008 period.

CD segment revenue was down 34% in the second quarter to $39.4 million from $59.4 million in 2008 in line with a corresponding decline in replication volumes.

Revenue from the Video Game segment was down 43% to $16.6 million in the second quarter of 2009 from $28.9 million in 2008 reflecting declines in this market associated with general economic trends.

As for the geographic distribution of revenue, the second quarter North American revenue decreased 24% to $184.1 million from $242.9 million in 2008, principally as a result of lower DVD volumes and prices. North America accounted for 61% of second quarter consolidated revenue compared with 63% in 2008.

European revenue was down 18% in the second quarter to $117 million from $143.4 million in 2008, due to lower unit sales for both DVDs and CDs, primarily from the company’s German operations combined with the foreign currency translation impact.

Excluding the impact of foreign currency translation, European revenue decreased by five percent in the second quarter of 2009 compared to 2008. Second quarter European revenue represented 39% of consolidated sales compared with 37% in the second quarter of 2008.assets and liabilities for net cash proceeds of $14 million.

Story filed 24.08.09