Disney Income Rises 3%, Boosted by ‘Lion King’ : Entertainment: Profit in its third quarter hits $267.5 million, exceeding analysts’ expectations.

Walt Disney Co.’s earnings climbed 3% in its fiscal third quarter as the company’s animation business continued to roar with “The Lion King” but its theme park business languished because of lower attendance.

Earnings in the quarter ended June 30 rose to $267.5 million from $259.1 million a year earlier, exceeding the expectations of most analysts and causing some to boost their estimates for the company’s returns in fiscal 1994 and 1995.

The results show that Disney’s animated movies and the merchandise they spawn continue to be the driving force at the Burbank-based entertainment giant.

The biggest boosts for Disney came from sales of “The Return of Jafar,” the videocassette sequel to “Aladdin,” and from the initial box office receipts from its new animated hit, “The Lion King.” In addition, the company benefited from sales of “Lion King”-related merchandise and the film’s top-selling soundtrack.

Disney’s overall revenue rose 22% to $2.4 million, from $1.9 million a year earlier. For the nine months, Disney’s earnings climbed 18.1% to $884.5 million while revenue climbed 16%, to $7.4 billion.

Revenue for Disney’s filmed-entertainment business surged 53% to surpass $1 billion for the quarter, with operating income rising 24% to $167.4 million.

Disney has been plagued by poor results from its recent live-action films such as “I Love Trouble” and “Renaissance Man.” But “Lion King” has made up the difference. The film has grossed more than $200 million domestically in slightly more than a month, $70 million of which came before the third quarter closed June 30.

Disney’s theme park operations fell 4% to $942.2 million, with operating revenue dropping 9% to $238.4 million. The company took a $52.8-million charge in the quarter related to the recent financial restructuring at Euro Disney, of which Disney owns 49%. The company attributed the theme park results largely to fewer Europeans visiting the United States and the weak tourism market in Southern California.

But Smith Barney analyst Jill S. Krutick said the lack of foreign tourists only partly accounts for the languishing theme park business, which she said has not been recovering in step with the improving domestic economy.

“Our feeling is that businesses need a fresh look. They need to take a close look at the marketing strategies and cost-cutting potentials,” Krutick said.

She added that she has raised her estimate of Disney’s earnings for both 1994 and 1995 based on the strength of “The Lion King.”

In a statement, Chairman Michael D. Eisner, who is currently recuperating from quadruple-bypass surgery, singled out the company’s filmed-entertainment and consumer products results, both of which show record revenue and operating income.

Disney’s stock rose 50 cents to $42.125, on the New York Stock Exchange on Wednesday.