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Disney Lowers Estimated Loss From JioStar Stake to $200 Million for FY25

Written by: Team Angel OneUpdated on: 7 Aug 2025, 5:46 pm IST
Disney trims projected loss on its 37 % stake in JioStar to $200 million for FY25, reflecting better earnings and a stronger DTC unit.
Disney Lowers Estimated Loss From JioStar Stake to $200 Million for FY25
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Disney has revised its outlook on the equity loss expected from its joint venture, JioStar, with Reliance Industries, as per news reports. The new estimate of $200 million for the fiscal year signals a noticeable improvement over the earlier $300 million projection, stemming from a mix of operational gains and accounting adjustments. Disney's fiscal year runs from October to September.

JioStar Loss Reduction and Key Drivers

Disney’s 3rd‑quarter earnings released on 7 August 2025 revealed an equity loss of $50 million from the JV for the quarter, pulling the 9‑month net loss to $186 million. The smaller loss is attributed to reduced amortisation charges and a stronger EBITDA of ₹1,017 crore reported by JioStar. The Indian Premier League 2025 has boosted viewership and advertising revenue. 

Impact on Disney’s Television and DTC Businesses

The Star India transaction removed its linear TV assets from Disney’s consolidation, causing a 92 % drop in operating income for that segment to $12 million. Conversely, the Disney+ Hotstar platform showed a robust recovery, with operating income climbing to $346 million, up from a $19 million loss a year earlier, thanks to higher subscription pricing and a larger subscriber base.

Read More: Jio Financial Services to Transform Financial Access Through Agentic AI, Says Chairman!

Financial Charges and Impairments FY25

For the 9‑month period, Disney posted $437 million in charges, including $185 million for equity investment impairment and $143 million for goodwill impairment linked to Star India. These non‑cash items are part of the write‑downs following the joint venture’s inception on 14 November 2024.

Conclusion

Disney’s revised loss forecast of $200 million on its 37 % stake in JioStar reflects a combination of better operating performance, reduced amortisation, and a strengthening direct‑to‑consumer division. Despite the loss, the company's media portfolio shows resilience in the face of deconsolidation movements.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. It does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

Published on: Aug 7, 2025, 11:43 AM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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