Fox Reports $11.9-Million Loss in Quarter

Again citing decreased feature film and television revenue, 20th Century Fox Film Corp. on Wednesday reported a net loss of $11.9 million for its second fiscal quarter ended Feb. 23, compared to a $6.9-million loss a year earlier.

The Los Angeles-based movie studio said the losses “were anticipated.” Fox noted that since Oct. 1 it has been undergoing substantial reorganization in its operating and financial structure, including its film and television divisions, and said “it is anticipated these changes will position Fox for improved future performance.”

New Equity

Meanwhile, the studio said, the previously announced purchase of 50% of Fox’s parent company by publisher Rupert Murdoch will result in $132 million of new equity for Fox.

In the deal reported March 21, Murdoch is to pay Fox owner Marvin Davis $262 million for half of TCF Holdings Inc. and lend Davis another $88 million.

A recent Fox filing with the Securities and Exchange Commission said the purchase is to be completed late this month and the loan is scheduled to close July 5.

Fox took major write-offs on movies and film projects in reporting an $85-million loss for the fiscal year ended last Aug. 25. That enabled Barry Diller, the new chairman hired by Davis from Paramount Pictures, to begin his regime without some of the burdens of his predecessor, Alan J. Hirschfield.

Fox said Wednesday that the $132-million equity infusion will be added to “the anticipated resetting and extension of its bank credit” and funds expected from other financial transactions within its CBS/Fox home-video partnership.

Full Production

These various funds, Fox said, will put the company in the position to fund full production programs in both motion pictures and television.

In giving results of its latest quarter in a 10-Q report to the SEC, Fox said revenue dropped to $159.4 million from $251.7 million in the same quarter of fiscal 1984.

In the second quarter, the company recorded a $5.7-million installment of continuing amortization write-offs of certain “excess costs” related to the 1981 acquisition of Fox by Davis and his former partner, Marc Rich.