UA and Fox Film Report Profits for 2nd Quarter

As expected since its movie “Rocky IV” scored as a box-office hit, newly independent United Artists Corp. reported a rosy second-quarter net of $10.1 million. UA, which had been a subsidiary of MGM/UA Entertainment during the entire quarter, said its share of MGM/UA’s net loss for the same period last year was $35.7 million.

Meanwhile, 20th Century Fox Film, whose new owner is media baron Rupert Murdoch, reported a second-quarter net of $11.8 million, compared to a net loss of $11.9 million a year earlier, largely due to the success of several films. Barry Diller, chairman and chief executive, said the company is “much ahead of its turnaround plan” started in January, 1985.

United Artists was sold to financier Kirk Kerkorian on March 25 by Turner Broadcasting System immediately after Turner bought MGM/UA. Kerkorian in turn sold about 15% to former MGM/UA public shareholders.

The UA earnings, released only a day after word of the sudden departure of its chairman and chief executive, Jerry Weintraub, did not quote any executive. The company cautioned that results for the quarter ended Feb. 28 “may not be indicative of future UA operations.”

UA said its second-quarter revenue was $101.2 million, compared to $57.5 million a year earlier.

Fox said its results benefited from the films “Commando,” “Jewel of the Nile” and “Cocoon,” as well as domestic syndication of its motion picture and television properties. Its second-quarter revenue rose to $181.4 million from $159.4 million a year earlier.