Latest news with #IndiaJV
Time of India
4 days ago
- Business
- Time of India
Disney cuts projected loss from its stake in JioStar to $200 million for FY25
Walt Disney has revised its projected loss from its 37% stake in its India joint venture with Reliance Industries Ltd (RIL), JioStar, to $200 million for the full fiscal year , down from an earlier estimate of $300 million. Disney follows an October-to-September fiscal year. Productivity Tool Zero to Hero in Microsoft Excel: Complete Excel guide By Metla Sudha Sekhar View Program Finance Introduction to Technical Analysis & Candlestick Theory By Dinesh Nagpal View Program Finance Financial Literacy i e Lets Crack the Billionaire Code By CA Rahul Gupta View Program Digital Marketing Digital Marketing Masterclass by Neil Patel By Neil Patel View Program Finance Technical Analysis Demystified- A Complete Guide to Trading By Kunal Patel View Program Productivity Tool Excel Essentials to Expert: Your Complete Guide By Study at home View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program In its third-quarter results ended June 28, the company projected an equity loss of $200 million from the India JV for the fiscal year, driven by purchase accounting amortisation. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo In its first and second-quarter earnings, Disney had projected equity losses of up to $300 million for the fiscal year, primarily due to accounting adjustments following the formation of the joint venture in November 2024. For the quarter under review, Disney reported an equity loss of $50 million from the India JV, bringing the total for the nine-month period to $186 million. Live Events The company's international linear TV networks were also significantly impacted by the Star India transaction. Revenue fell 58% to $219 million, while operating income declined 92% to $12 million, as Star India operations are no longer consolidated following the formation of the JV. Overall income from equity investees declined by $71 million, falling to $75 million from $146 million in the same quarter last year, primarily due to losses from the India JV. Meanwhile, Disney's direct-to-consumer (DTC) business posted a strong rebound, with operating income rising to $346 million, compared to a $19 million loss in the same quarter a year ago. The company attributed the improvement to growth in subscription revenue, driven by higher pricing, an increase in subscribers, and the absence of Star India subscription revenue post-deconsolidation. For the nine-month period, the company recorded charges totaling $437 million, including $185 million for the impairment of an equity investment, $143 million for goodwill impairment related to Star India, and $109 million for content impairments. In the prior-year period, charges totaled $2.05 billion, primarily due to goodwill impairments related to Star India and its entertainment linear networks. The India joint venture, announced on November 14, 2024, combined Disney's Star-branded entertainment and sports channels and the Disney+ Hotstar service with Reliance's media and entertainment assets under Viacom18. Reliance holds a 56% controlling stake, Disney owns 37%, and Bodhi Tree Systems holds the remaining 7%. Following the formation of the JV, Disney deconsolidated Star India's assets and reclassified its stake as an equity method investment. The company recognized non-cash impairment charges of $1.3 billion in Q2 FY24 and $100 million in Q1 FY25, along with a $200 million non-cash tax charge in Q1 FY25, to reflect the fair value of Star India's assets and liabilities. As part of the agreement, Reliance Industries injected ₹11,500 crore into the joint venture. JioStar reported a net profit of ₹581 crore for the quarter ended June, according to RIL's quarterly financial disclosure. The company recorded an EBITDA of ₹1,017 crore and operating revenue of ₹9,601 crore, driven by the strong performance of the Indian Premier League (IPL) 2025. This came despite continued challenges in the entertainment segment due to reduced FMCG ad spending. RIL said the IPL had delivered its highest-ever revenue across TV and digital during the season.
Mint
5 days ago
- Business
- Mint
Reliance-Disney JV creates digital powerhouse, yet Disney projects $200 mn loss in year to September
Media and entertainment conglomerate Walt Disney Company has projected an equity loss of approximately $200 million for the year ended September from its India joint venture with Reliance Industries Ltd, primarily driven by purchase accounting amortization, suggesting that integration costs or performance issues remain in the country. Disney recorded a $50 million loss from the India JV under 'equity in the income of investees' for their third quarter ended June. Disney follows October-September fiscal year. The joint venture, formalized on 14 November 2024, combined Disney's Star-branded general entertainment and sports channels and its Disney+ Hotstar streaming service with the media assets controlled by Reliance. The Mukesh Ambani-owned firm holds a 56% controlling stake in the joint venture, Disney retains 37%, and an investment firm holds the remaining 7%. Further, Disney said that linear networks' international revenue and operating income dropped 58% and 92%, respectively in Q3, largely due to the deconsolidation of Star India. Disney reported 2% increase in revenues to $23.7 billion from $23.2 billion a year ago. The entertainment segment operating income stood at $1.0 billion, a $179 million decrease versus last year. Disney+, the company's video streaming service reported 128 million subscribers, an increase of 1.8 million versus Q2 FY2025. The India JV now combines Reliance's Viacom18 network (with channels like Colors and Sports18) and Disney's Star network (including Star Plus, Star Gold, and Star Sports) under a single umbrella. On the streaming front, the JV brings together JioCinema and Disney+ Hotstar, creating a digital powerhouse with a combined reach of over 750 million viewers in India. JioHotstar, the video streaming platform created with the merger of Disney+ Hotstar and JioCinema in India, said it had crossed 100 million paid subscribers, this March. The combined Reliance-Disney streaming entity is three to four times bigger than the likes of Netflix in terms of total hours of programming and may even look at acquiring smaller,niche language-specific entitiesthat are struggling to survive, according to industry experts.
