Fox Posts a $2.2-Million Net Profit for 1st Quarter

20th Century Fox Film Corp. on Wednesday reported a $2.2-million net profit for the first fiscal period ended Nov. 30, 1985, attributed largely to revenue from domestic syndication of its filmed entertainment. It was the second consecutive quarterly profit under new owner Rupert Murdoch.

In the same period a year earlier--while under the ownership of Marvin Davis--Fox reported a net loss of $12.4 million. Fox recorded a $1-million net profit in the fourth quarter of fiscal 1985 but a $79.1-million net loss for the full year.

Fox said that, in addition to its syndication revenue, its latest results benefited from the theatrical success of two movies, "Commando" and "Cocoon."

In its first quarter, Fox said it had $297.8 million in revenue, compared to $268.6 million for the same period of fiscal 1984. The company, which amortized $14.6 million of certain acquisition costs in the first quarter (compared to $12.7 million a year earlier), said that this factor "continues to substantially reduce net earnings for the periods."

Fox's figures, shown in a Form 10-Q filed with the Securities and Exchange Commission, noted that, effective Jan. 3, the company amended its bank revolving credit agreement--decreasing the amount available for borrowing to $248 million. The company also recently reported on a Form 8-K that Murdoch had borrowed from at least 10 banks the entire $488 million that he used to buy the company from Davis.

Although the Hollywood studio is privately owned, it is required to make periodic reports to the SEC because some of its debentures are still publicly held.

Copyright © 2019, Los Angeles Times
EDITION: California | U.S. & World