EARNINGS : Theme Parks Propel Disney’s Income to Record High

Boosted by a jump in attendance at its theme parks, Walt Disney Co. reported a $318.2-million profit in its third fiscal quarter, up 19% from a year earlier.

The record revenue and earnings, which came to 60 cents a share, exceeded Wall Street’s expectations. According to First Call Corp., the mean estimate from analysts had been 55 cents a share. Disney’s revenue climbed 17% from a year earlier to $2.76 billion, while operating income rose 14%, to $562.3 million. Disney’s stock climbed $1.125 to close at $56.875 on Wednesday on the New York Stock Exchange.

The Burbank-based company’s results came despite an 8% drop in operating profit from its filmed entertainment group.

Chief Financial Officer Stephen F. Bollenbach said the film group earnings were compared against exceptionally strong results a year earlier, the main reason for the year-to-date drop. Last year, the company released the highly profitable “The Return of Jafar,” a direct-to-video sequel to the animated feature “Aladdin.”

Despite having the inexpensive surprise hit “While You Were Sleeping,” which has grossed about $75 million to date domestically, Disney’s live-action results in the quarter were mixed. The company had several box office duds, such as “Jefferson in Paris” and “A Pyromaniac’s Love Story.”

According to Smith Barney analyst Jill Krutick, Disney was forced to take a small write-off on the big-budget submarine thriller “Crimson Tide”--even though the film has taken in about $88 million at the domestic box office--because of the film’s costs, reportedly about $60 million. But sources at Disney said the write-down was more the result of accounting practices than the movie’s performance--Disney books all marketing and production costs upfront--and that the film is expected to eventually show a profit of about $40 million when it has gone through its domestic, international, home video and television cycles.

Results for the animated feature “Pocahontas” are expected to start showing up in the fourth quarter. The film is falling short of last year’s huge hit “The Lion King” but is still expected by analysts to be highly profitable, in part because of favorable merchandising arrangements.

Disney said attendance at its theme parks was at an all-time high in the quarter, which executives attributed to a recovery in the East Coast economy, foreign tourists attracted to the United States by the cheap dollar, and new rides such as “Twilight Zone Tower of Terror” at Walt Disney World and the “Indiana Jones Temple of the Forbidden Eye” at Disneyland.

Revenue for Disney’s theme parks and resorts group rose 20% to $1.13 billion, while operating income rose 27% to $302.5 million.

“The theme park operating income numbers are terrific,” said Jeffrey Logsdon, who follows Disney for Seidler Cos.

Disney said its 39% investment in Euro Disney, which announced Tuesday that it has finally turned a quarterly profit, resulted in a loss of $14.4 million. Bollenbach attributed the loss to more conservative measures in the United States than in France.

Disney did not break out results for its Mighty Ducks of Anaheim hockey franchise, but a Disney spokesman said the team is expected to be profitable in the fiscal year despite a strike by hockey players early in the season.