GECs
Disney’s magic numbers: Q2 2025 earnings cast a spell
MUMBAI: The Walt Disney Company’s Q2 2025 earnings have delivered a star-studded performance, with revenues climbing seven per cent to $23.6 billion, driven by robust gains in entertainment and experiences. But it wasn’t all smooth sailing — sports struggled with soaring production costs, keeping the magic somewhat grounded.
In the spotlight, Disney’s entertainment segment sparkled with a 61 per cent surge in operating income, hitting $1.3 billion. Direct-to-consumer revenues also soared, thanks to a 2.5 million bump in Disney+ and Hulu subscriptions, pushing the combined total to 180.7 million. The much-talked-about Disney+ subscriber base alone rose to 126 million, an addition of 1.4 million from the previous quarter.
However, the sports division played a tougher game. Operating income tumbled by $91 million to $687 million, primarily due to bloated programming costs, which included airing three extra college football playoff games and an additional NFL clash. ESPN’s domestic advertising revenue shot up by 29 per cent, but it wasn’t enough to offset the spending blitz.
Disney’s crown jewel — its experiences division — continued to enchant. Segment operating income hit $2.5 billion, a nine per cent rise, as domestic parks saw a 13 per cent boost in income, driven by higher spending and increased attendance.
Net income soared to $3.4 billion from just $216 million a year ago, with adjusted earnings per share (EPS) hitting $1.45, a 20 per cent year-on-year jump. Free cash flow surged over 100 per cent to $4.9 billion, thanks to lower tax payments and tighter cost control.
But not everything was a fairy tale. Disney’s Star India JV posted a $103 million loss, reflecting ongoing challenges in the competitive Indian market. There was also a equity loss from India JV of ~$300 million driven by purchase accounting amortisation. Amounts for the current period include impairment charges related to the Star India transaction ($143 million) and content ($109 million). Tax expense in the current period includes the estimated tax impact of these charges and a non-cash tax charge of $244 million related to the Star India transaction. Amounts for the prior-year period include impairments of goodwill ($2,038 million).
Looking ahead, Disney is waving its wand at a 16 per cent rise in adjusted EPS for the full year, expecting $5.75 per share, as it bets on double-digit growth in entertainment and a fresh direct-to-consumer push with ESPN’s new offering.
Disney’s CEO Bob Iger summed it up: “Our outstanding performance this quarter underscores our continued success building for growth and executing across our strategic priorities. Overall, we remain optimistic about the direction of the company and our outlook for the remainder of the fiscal year.”
GECs
Sahara One reports financial results, notes director exit and business realignment
Muted revenues, steady expenses and strategic adjustments shape company’s current phase
MUMBAI: In a tale where the sands seem to be slipping faster than they can be gathered, Sahara One Media and Entertainment Limited has reported another quarter of wafer-thin income and widening losses, even as a boardroom exit adds to the unease.
The company informed the Bombay Stock Exchange that its board, in a meeting held on April 4, approved its unaudited financial results for the quarter ended September 30, 2025. The numbers paint a stark picture. Total income for the quarter stood at just Rs 0.13 lakh, unchanged sequentially and sharply down from Rs 0.26 lakh a year earlier.
Losses, meanwhile, deepened. The company posted a net loss of Rs 24.16 lakh for the quarter, compared to Rs 18.81 lakh in the June quarter and Rs 39.69 lakh in the same period last year. For the six months ended September 2025, the cumulative loss stood at Rs 39.69 lakh, while the full-year loss for FY25 was reported at Rs 60.72 lakh.
Expenses continued to outweigh income by a wide margin. Total expenses for the quarter came in at Rs 24.30 lakh, led by employee benefit costs of Rs 6.51 lakh and other expenses of Rs 17.78 lakh. Earnings per share remained in the red at Rs (0.11) for the quarter.
The balance sheet reflects a company with significant assets on paper but limited operational momentum. Total assets stood at Rs 23,065.57 lakh as of September 30, 2025, broadly unchanged from March 2025. Equity share capital remained steady at Rs 2,152.50 lakh, while total equity was reported at Rs 18,004.85 lakh.
Cash and cash equivalents saw a modest uptick to Rs 6.75 lakh from Rs 4.68 lakh earlier, supported by a positive operating cash flow of Rs 180.01 lakh for the period.
Yet, beneath these numbers lies a more complex narrative. The company’s auditors flagged their inability to obtain sufficient evidence to form a conclusion on the financial statements, citing lack of access to records. They also raised concerns over the company’s ability to continue as a going concern, pointing to insufficient funds, delayed recoveries, and stalled content investments.
Adding to the governance overhang, the company disclosed that Rana Zia has resigned as whole-time director, effective October 16, 2025, citing other professional commitments. The resignation, noted and accepted by the board, also brings an end to her role across company committees.
Regulatory pressures continue to loom large. The Securities and Exchange Board of India has already initiated penal actions for non-compliance with listing norms, with trading in the company’s shares remaining suspended. There is also a risk of promoter demat accounts being frozen.
Legacy legal issues remain unresolved. A substantial deposit of Rs 694,027.88 thousand linked to the long-running OFCD dispute involving Sahara group entities is still under the purview of the Supreme Court of India. Restrictions on asset disposal continue to weigh on the company’s financial flexibility.
Operationally, challenges persist across multiple fronts. Advances worth Rs 1,92,916 thousand given for film content remain stuck, with delays in project completion and uncertain recoverability. The company’s YouTube channel, despite being operational, has generated no revenue for over three years due to compliance lapses. In a further twist, management has indicated that revenues may have been fraudulently diverted through unauthorised changes to its AdSense account, with a police complaint in the works.
There are also missed revenue opportunities. Television content rights continue to be used by a related party despite the expiry of the licence agreement, with fresh negotiations still underway.
For now, Sahara One Media and Entertainment Limited appears caught between legacy disputes and present-day operational hurdles. As losses linger and governance questions mount, the road to recovery looks less like a sprint and more like a slow trudge through shifting sands.
