Walt Disney Reports $33 Million Equity Loss from India Joint Venture in Q1 2025

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The Walt Disney Company has reported a $33 million equity loss from its Indian joint venture (JV) in the first quarter of fiscal year 2025. The loss is primarily attributed to purchase accounting adjustments following the creation of the JV in late 2024.

Disney’s India JV was formed through a partnership with Reliance Industries Limited (RIL) and Bodhi Tree Systems, consolidating the company’s Star-branded entertainment and sports channels, Disney+ Hotstar streaming service, and RIL’s JioCinema platform.

Under the terms of the agreement, RIL holds a majority stake of 56%, while Disney retains a 37% share, with Bodhi Tree Systems owning the remaining 7%.

Despite the reported equity loss, Disney expects the JV to contribute $73 million to its Entertainment segment’s operating income for fiscal 2025. However, this marks a sharp decline from the $254 million recorded in the previous year.

Meanwhile, the Sports segment is projected to see a modest $9 million contribution, recovering from a significant $636 million loss in the prior year.

For the full fiscal year, Disney anticipates total equity losses from the JV to reach approximately $300 million, largely due to accounting-related adjustments.

However, the company remains confident in the long-term growth prospects of its Indian media assets, particularly in the fast-growing streaming and digital entertainment space.

Beyond the JV, Disney’s overall financial performance in Q1 FY25 has shown resilience. The company reported a 44% increase in adjusted earnings per share to $1.76, exceeding market expectations.

Revenue rose by 5% to $24.69 billion, driven by strategic price increases across its streaming services. Additionally, the direct-to-consumer segment, which includes Disney+, Hulu, and ESPN+, reported a $293 million operating profit, a significant turnaround from a $138 million loss in the same quarter last year.

While the initial financial impact of the India JV is notable, Disney’s long-term vision for the region remains optimistic.

The partnership is expected to strengthen its foothold in one of the world’s most dynamic media markets, positioning the company for future growth despite the short-term accounting adjustments.

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