Disney’s Net Increases 22%

The popularity of two animated films--the home video of the 1940 classic “Fantasia” and the current release of “Beauty and the Beast”--helped Walt Disney Co. post increases in revenue and net income for the quarter ended Dec. 31.

Disney said Monday that its first-quarter earnings rose 22% to $208.1 million, or $1.56 a share, from $170.4 million, or $1.28 a share, for the corresponding period one year earlier.

“Clearly the film and entertainment division was the saving grace, particularly home video,” said Paul C. Marsh, a Los Angeles-based analyst for Kemper Securities Group. “The roots of Disney’s heritage made the difference this quarter.”

The company reported that revenue rose $1.9 billion, or 30%, over the year-before period.

Also on Monday, Disney’s board of directors voted to increase the quarterly cash dividend from 17.5 cents to 21 cents per share--an increase of 20%.

Erwin D. Okun, a Disney spokesman, said the quarter marked only the second time in 25 years that revenue from the company’s film operations outpaced its theme park business.

The company described attendance at Disney theme parks as “down slightly compared to the prior quarter,” attributing the decrease to “the timing of the holiday period.” Marsh, though, suggested that the recession may be to blame.

Revenue from “Fantasia” was about $14.1 million from November to late January, according to Okun. “Beauty and the Beast,” the animated fairy tale that has won critical acclaim, has grossed $99.2 million since its release in November.

The company’s statement also noted the success of another animated feature, “The Little Mermaid,” which has spurred sales of Disney-character products, such as children’s clothing.

Production costs for “Fantasia”--first released to theater audiences Nov. 13, 1940--were $2.25 million. The cost of making “Beauty and the Beast” has been been reported at $15 million.