20th Century Fox Profit Falls; Higher Taxes Cited

Twentieth Century Fox Film Corp. reported that its profit in its second fiscal quarter dipped to $8.3 million from $11.8 million in last year’s comparable period, chiefly because it provided nearly $10 million more to pay income taxes.

The results were a reversal from the first fiscal quarter, when the Los Angeles-based entertainment firm had a nearly 300% increase in profit as its income tax liability fell by $14 million.

Fox’s net income for the latest six-month period dropped to $17.9 million from $22.6 million a year earlier.

The company reported strong increases in both revenue and operating profit for the second quarter and six months ended Dec. 27, crediting the “worldwide theatrical success” of its hit “Aliens” and revenue from the domestic showing of “The Fly.”

Fox said revenue totaled $186.5 million for the quarter and $452 million for the six months, compared to $171.4 million and $365 million, respectively, last year. As reported, Fox shortened its 1986 fiscal year to the 10 months ended June 28, putting it in line with the financial periods of its parent company, News Corp Ltd., controlled by Rupert Murdoch.

The company said its operating profit was $30.4 million in the second quarter and $57.9 million in the six months, compared to $24.9 million and $43.2 million, respectively, last year.