Gaga forecasts $12 mil loss

Oversaturated market takes toll on 'Core,' 'Agent'

TOKYO — Buffeted by lower-than-expected B.O. office returns for expensive Hollywood blockbusters and a downturn in revenues from the sale of broadcasting rights for films, Japanese distrib Gaga Communications announced last week that it expects a consolidated net loss of 1.47 billion yen ($12.25 million) for its financial year, ending Sept. 31.

The reversal in forecast from a net profit of $4.58 million has been triggered by a 5% downturn in film distribution revenue.

Expensive advertising for “The Core” and the co-distribution of the South Korean hit “Double Agent” with local studio Toei did not save those pics from a cool audience reception in a market saturated with major Hollywood fare. Gross receipts for these two films alone fell $6.66 million short of projections.

Gaga also changed the structure of its sale of broadcasting rights for films. Move resulted in a lower-than-expected increase in revs from such sales, with actual revenue coming in $6.16 million short of the original target.