Walt Disney Reports $103 Mn In Equity Loss From India JV JioStar

The Walt Disney Company witnessed an equity loss of $103 Mn from its Indian joint venture (JV) JioStar with Reliance Industries and Bodhi Tree Systems during the quarter ended March 2025. 

In a filing with the exchanges, the US-based broadcasting giant said that it reported $136 Mn in equity loss from the JV in the six month period ended March 2025. 

Additionally, the company projected an equity loss of nearly $300 Mn in fiscal year 2024-25 (FY25) due to JioStar’s formation, “driven by purchase accounting amortisation”.

In the US, a fiscal year generally stretches between October of the preceding year and September of the successive year. For example, FY25 would extend between October 2024 and September 2025. 

It is pertinent to note that the JV was formalised in November last year and combined the media businesses of both Disney India and Reliance Industries under the JioStar brand. Post the consolidation, the Mukesh Ambani-led conglomerate owned 56% controlling stake in the JV while Disney and Bodhi Tree Systems held 37% and 7% stake, respectively.

Owing to this, the Walt Disney Company has stopped reporting Star India’s results in its financials and instead reports its 37% stake in the JV under the header “equity in the income of investees”. Due to this shift, the US broadcaster’s international operating income fell more than 84% to $15 Mn in Q2 FY25 compared to $92 Mn in the year-ago period. 

“The decrease in international operating income was due to the Star India transaction,” said the company in the filing. 

The deconsolidation of Star India from its books also took a toll on Walt Disney Company’s revenues from linear networks and streaming subscription services. 

“Subscription revenue growth attributable to higher effective rates, reflecting increases in pricing, and more subscribers, partially offset by an unfavorable foreign exchange impact and the absence of Star India subscription revenue in the current quarter due to the Star India transaction,” added the company. 

In addition, Disney also reported $109 Mn in content impairment charges in Q2 FY25 compared to a massive $2.05 Bn due to goodwill impairments related to Star India and entertainment linear networks in India during the same quarter last fiscal. 

Meanwhile, Disney reportedly remains liable for $1 Bn in letters of credit issued by Star India before the merger, with guarantees extending through the end of 2025.

That said, the consolidated venture JioStar currently caters to 760 Mn monthly viewers via its bouquet of TV channels and streaming platform JioHotstar. During parent Reliance’s earnings call for the quarter ended March 2025, CEO of JioStar’s entertainment division Kevin Vaz said that the streaming platform had 28 Cr paid subscribers and 50.3 Cr monthly active users as of March 2025.

On the financial front, JioStar reported a net profit of INR 229 Cr against a revenue of INR 10,006 Cr for the period between its merger in November 2024 and March 2025.