Disney Earnings Set Record During Year

The golden touch of Walt Disney Co. continued Monday, with the Burbank-based entertainment giant reporting a record profit of $522 million for the fiscal year ended Sept. 30.

Disney said the 17% increase in earnings from last year’s $444.7 million came on record revenue of $3.44 billion, up 20% from $2.88 billion in 1987.

Fourth-quarter earnings of $136.4 million, also a record, were up only slightly from the same period of 1987, although revenue for the latest quarter jumped 34% to $1.01 billion.

Disney’s net income last year was boosted by results of its Florida real estate development company, Arvida Corp., which has since been sold. That income from discontinued operations amounted to $52.4 million in 1987 and included $24.6 million recorded in the fourth quarter last year.

Of the company’s $884 million in pretax operating income in 1988, theme parks and resorts--principally Disneyland and Walt Disney World--contributed $564.8 million. That was 3% above the division’s performance last year. Theme park revenue rose 11% to $2.04 billion for the year and increased 18% to $618.4 million for the fourth quarter.

Although attendance was down from last year, the company said higher operating profits came on higher per-capita spending by customers. The company said last year’s record attendance levels were helped by the 15th anniversary promotion of Walt Disney World in Florida and the opening of two new Disneyland attractions.

Disney’s filmed entertainment and consumer products businesses also recorded substantial increases in revenue and operating profits for the latest fiscal year.

Filmed entertainment, which was fueled by three box office hits, produced $186.27 million in operating income, up 43%, on revenue of $1.15 billion, up 31%.

The company’s major releases in the fiscal year were “Three Men and a Baby,” “Good Morning, Vietnam” and “Who Framed Roger Rabbit.”

Operating income for the consumer products division increased 48% to $133.8 million, on revenue of $247 million, up 48%.

General and administrative expenses rose 37% to $96 million for the full year and were up 47% to $28.6 million for the fourth quarter.