Walt Disney Reports $103Mn Equity Loss From India JV JioStar In Q2

The Walt Disney Company reported a $103 million loss from its India joint venture (JV) with Reliance Industries and Bodhi Tree Systems for the March quarter, and $136 million for the six-month period, in its Q2 FY25 results.

It also reported a total loss of $300 million from the JV over six months, mostly due to accounting changes related to the creation of JioStar, as mentioned in Q1.

This loss is linked to Disney’s 37% stake in the JV, which was finalized on November 14, 2024. The JV combines Disney’s India media assets—like Star India and Disney+ Hotstar—with Reliance’s media business under Viacom18. 

Reliance owns 56%, and Bodhi Tree Systems owns 7%. As part of the deal, Disney removed Star India from its own financial statements and now treats its share as an equity investment.

This shift led to a 55% drop in international revenue, which fell to $223 million for the quarter ending March 29. Operating income from international operations dropped 84% to $15 million.

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Earnings from companies where Disney holds a stake also fell sharply to $36 million from $141 million a year ago. Disney’s traditional TV business (linear networks) saw a 2% increase in profit, although last year’s numbers included $89 million from Star India.

Still, the JV, now known as JioStar, made a net profit of Rs 229 crore (about $27 million) on revenue of Rs 10,006 crore ($1.2 billion) from the merger date to March 31. It also posted Rs 774 crore ($93 million) in EBITDA with a 7.7% margin.

"We have had robust financial performance, keeping in mind, despite the weak macroeconomic situation that is there. We have had higher sports revenue led by ICC Trophy as well as IPL. And despite the headwinds, we have kept a very close eye on our costs and to ensure that we have profitability and have positive financials for this period," JioStar CEO - Entertainment Kevin Vaz said during Reliance Industries’ Q4 FY25 earnings call.

Disney also reported non-cash charges of $143 million related to the JV deal and another $109 million due to content write-downs.

Despite these costs, Disney’s streaming business earned $336 million in operating income, up from $47 million a year ago, thanks to higher subscription prices and no longer covering losses from Star India.

However, Disney is still responsible for $1 billion in letters of credit issued by Star India before the merger. These guarantees remain in place until the end of 2025.

The new JV, JioStar, now reaches 760 million viewers each month and holds a 34% share of India’s TV entertainment market. Its streaming platform, JioHotstar—created by merging Disney+ Hotstar with JioCinema—had 280 million paid subscribers and 503 million monthly active users in March 2025.

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