DISNEY EARNINGS CALLED STRONG STOCKHOLDERS GET 'MILLIONAIRE' BOOST.

Byline: Jesse Hiestand Staff Writer

BURBANK - Investors in The Walt Disney Co. may be the ultimate winners from ``Who Wants to be a Millionaire'' as the ratings powerhouse is expected to be largely credited with driving strong third-quarter earnings released today.

The media giant's theme parks will also propel the company's continued rebound, analysts predicted, but the most startling numbers should come from the popular ABC game show.

Based on a consensus of analysts surveyed by First Call/Thomson Corp., Burbank-based Disney should report net income of 24 cents per share for the third quarter ending June 30, an increase of 4 cents a share over the year-ago period.

For its fiscal year 2000, which ends Sept. 30, analysts expect Disney to earn 83 cents per share, compared with 66 cents per share in 1999. Strong earnings are expected to continue in the fourth quarter, with Merrill Lynch already revising its fourth-quarter projection from 16 cents per share to 19 cents.

``This has turned out to be a very good year because of `Millionaire,' '' said Jessica Reif-Cohen, an analyst with Merrill Lynch. ``It's what's driving a lot of the upside.''

Analysts warn that too much may be riding on ``Millionaire,'' with Merrill Lynch noting that a ratings slowdown for the show was the ``one material risk'' it saw for Disney.

Disney spokesman Ken Green declined to comment on the estimates.

Shares of Disney gained 63 cents, or 1.5 percent, to close at $40.125 on volume of 4.5 million shares on the New York Stock Exchange.

Just nine months ago, as Disney was struggling to turn around its business, its stock hit $24 on a bearish forecast by Chairman Michael Eisner that profits wouldn't rebound at all this year.

While ad revenue at Disney's ABC network and its owned-and-operated stations is expected to show remarkable growth - up some 80 percent in operating income - the company's theme parks will contribute more in terms of total dollars to the bottom line, analysts said.

The theme parks are expected to report a 12 percent growth in operating revenue for the third quarter, up from about $497 million last year to about $555 million.

Dragging on the company's continued rebound are weakness in its consumer products and studio business, particularly the home video division, said Scott Davis of First Union.

The projected earnings exclude losses at Disney's GO.com, the struggling Internet site that is being revamped for a relaunch in September. On Wednesday, Disney announced revenue from its Internet operations increased 39 percent in the third quarter, yet operating losses reached about $83 million, or 34 cents per share.