DeLaurentiis’ Film Shows a $6.5-Million Loss

The question of just how badly DeLaurentiis Entertainment Group did on its new movie, “Million Dollar Mystery,” was cleared up Friday. The independent producer assessed the loss at $6.5 million.

The Beverly Hills-based company’s stock hit a new low for the second consecutive day, closing Friday at $6.25, down 25 cents on the American Stock Exchange. At one point, it dipped as low as $5.75. A day earlier, it had fallen $2.25.

Since the news Tuesday of “Million Dollar Mystery’s” flop in its opening weekend, the stock dropped in value by one-third from the $9.50 level.

Wall Street observers were divided on the effect of the loss on DeLaurentiis, which went public in May, 1986.

Lee Isgur, a Paine Webber analyst who recently changed his recommendation on the company to “hold” from “buy,” said he still believes the company is in “good shape.” He believes that income from the company’s releases scheduled for the last half of the year might exceed “slightly” losses expected in the first half.

When the major studios have a loss on a picture, Isgur commented, “nobody cares.”

But when one of the independents has a loser, he said, the reaction is, “It’s another Cannon all over again.” He referred to Cannon Film Group, which has been in financial crisis since last fall, and which Isgur consistently backed until recently.

Another analyst, who declined to be identified, said that the DeLaurentiis company will have a “tough pull” because of the $6.5-million loss.

In the fiscal year ended last Feb. 28, the company reported a $1.3-million loss on $69 million in revenue.

Stephen R. Greenwald, the company’s chief operating officer, said: “We have confidence in the remaining seven pictures scheduled for release in calendar 1987.” All but one of them are substantially completed, he said.

“We have the wherewithal to continue with our strategy,” he said in a telephone interview. “We’re here to stay as an aggressive competitor.”

Greenwald confirmed that, overall, the company’s films must bring in rentals of an average of $6 million each, or about $14 million in box-office gross receipts, to break even. “Million Dollar Mystery” garnered only $513,731 on its crucial first three days of release.