Genie Grants Disney a 34% Increase in Profit

Walt Disney Co., helped by the record-breaking videocassette sales of “Aladdin,” hit films such as “Cool Runnings” and strong sales of Disney-related merchandise, posted a 34% jump in first-quarter profit to $368.6 million, on revenue of $2.73 billion.

The results for the period ended Dec. 31, which amount to 68 cents a share, were stronger than Wall Street had expected. As a result, Salomon Bros. raised its estimate of Disney’s earnings in all of fiscal 1994 to $2 a share from $1.85, and its fiscal 1995 projection to $2.30 from $2.18.

Disney shares Tuesday closed up 12.5 cents at $47, after trading at a 52-week high of $48.375 on the New York Stock Exchange.

Unlike previous quarters, Disney’s latest results weren’t stained by red ink flowing from the Euro Disney theme park in France. The park is still losing money, while debt-restructuring talks with European lenders continue.

Disney, which owns 49% of Euro Disney’s parent company, set aside $350 million in November to cover its financial commitment to the park. As a result, its future earnings won’t have to reflect Euro Disney’s losses unless the company pumps more money into the theme park.

Revenue from Disney’s filmed entertainment unit jumped 18% to $1.42 billion, thanks to video sales of “Aladdin” in the United States and sales of “The Jungle Book” videocassette overseas. The unit’s operating profit soared 45% to $340.2 million.