MUMBAI: Zee Group chairman Subhash Chandra has announced the creation of a $250 million content development, production, co-production and acquisition fund for Veria Living, the network devoted to showcasing wellness programming and related content across multiple media platforms.

Chandra said that the establishment of the $250 million fund is yet another step in Zee Groups? strategic five-year plan to further expand Veria Living?s presence in the US and beyond as the go-to-source for all things health and wellness.

?We are firmly committed to growing the Veria brand across television, Internet, mobile and OTT platforms. By focusing on original content development and production we?re not only looking to build a broad US audience for Veria Living, but also setting the table for the expansion of the brand globally over the next couple of years,? he said.

Veria Living claims of offering the world?s largest line-up of first-run, original programming ? connecting viewers in a contemporary and accessible manner to the benefits and joys of living a healthy lifestyle.

The New York-headquartered Veria Living television network is available throughout the US on Dish Network, Verizon FiOS and Frontier Communications subscribers.

Veria.com, the website, complements the network by extending the Veria Living philosophy through online recipes and nutrition, holistic health tips, body-mind conditioning and all-natural products.

The news comes on the heels of Veria?s recent announcement regarding its new primetime programming line-up, launch of its new comprehensive website (www.Veria.com) and rebranding as Veria Living scheduled for a January 2012 premiere. The network also recently unveiled a new lifecycle logo combining Eastern influence with Western design (sunshine yellow and tangerine orange) and its new tagline ? ?Go Well?.

Veria Living and Zee TV suite of Indian language channels are managed in the US by Asia TV USA and overseen by its CEO Suresh Bala Iyer. Iyer said, ?We not only want to appeal to our core 35-44 Adult and 25-54 Women demos, but to all Americans who are looking to lead healthier lives. Veria Living helps them to achieve this by passionately advocating for quality and vitality of life by following proven wellness and nutritional activities. This fund will go a long way towards helping us to achieve our goals while creating the most entertaining content possible that fits our mission.?

Chandra founded Veria as way to promote wellness to the West, was in New York to receive the 2011 International Emmy Directorate Award.

MUMBAI: Zee Entertainment Enterprises Ltd (Zeel) has posted a healthy 26.7 per cent jump in its second-quarter net profit as revenue stayed flat in a weak advertising environment.

A 4.2 per cent drop in ad revenue has been cushioned by a 2.3 per cent cut in costs, helping the company to beat the profitability forecast made by market analysts.

Zeel?s consolidated net profit for the three-month period ended 30 September stood at Rs 1.6 billion compared to Rs 1.26 billion a year ago. Analysts had forecast the company to earn a net profit of Rs 1.40 billion.

Operating revenue stood at Rs 7.18 billion, marginally up from Rs 7.12 billion. However, the company clarified that the operating revenues and expenditure for Q2 are not comparable to the earlier year because of the "change in accounting treatment of domestic subscription revenues, which are now being reported net of expenses."

Zeel chairman Subhash Chandra said, "The Indian economy continues to grow at a good pace but high inflation and the resultant tight money policy of RBI is taking its toll. While the economic situation in India is far better than most other countries, market sentiment continues to be cautious. This caution has affected advertising spends on television, which has witnessed some deceleration. The good part is that the television economy continues to grow robustly on the back of subscriber growth and digitisation." 

The consolidated operating profit (Ebitda) for the quarter was up 10.1 per cent to Rs 2.07 billion, from Rs 1.88 billion in the year-ago period. Operating profit margin stood at 28.9 per cent.

Finance expenses during the quarter were Rs 56 million, up 1085 per cent year-on-year.

During the quarter, Zeel?s advertising revenue saw a decline of 4.2 per cent to Rs 3.95 billion compared to the earlier year. Zeel clarified that the decline is due to the fact that the corresponding quarter last fiscal had some India-centric cricket properties. Excluding sports, advertising revenues have shown an increase.

The company, however, feels that the ad environment will stay weak this fiscal.

Subscription revenue for the quarter stood at Rs 2.91 billion, registering an increase of 6.3 per cent over the corresponding quarter of the previous fiscal. During the current quarter, domestic subscription revenue stood at Rs 1.95 billion, while international subscription income was at Rs 959 million, down 3 per cent. Domestic cable accounted for 12.8 per cent of the revenue, while domestic DTH accounted for 14.3 per cent.

Overall, programming and operating cost in the quarter was Rs 3.22 billion as against Rs 3.46 billion in the corresponding period of the previous fiscal, a reduction of 6.8 per cent.

Employee cost increased by 7 per cent; selling and other expenses in the quarter were at Rs 1.2 billion, as against Rs 1.13 billion in the earlier year. Total costs incurred by the company in this quarter stood at Rs 5.11 billion, showing a reduction of 2.3 per cent.

The numbers as published are after consolidating the financials of Taj TV Limited (Taj). It also includes financial results of regional general entertainment channel business (R-GEC) acquired from Zee News Limited (ZNL) and 9X business undertaking of 9X Media.

Zeel?s sports business posted a revenue of Rs 881 million, while costs incurred in this quarter was Rs 1.11 billion.

Zeel MD and CEO Punit Goenka said, "Zee Entertainment has a wide portfolio of television channels and we have seen some gains and some losses in our market shares during the quarter. We are confident that we would continue to grow our business profitability in a sustained manner. During the quarter, we have seen a healthy increase in our operating margins, partly due to lower sports losses and partly due to better cost efficiency measures. Though advertising spends are better sequentially, overall trends remain subdued and FY?2012 does look to be a year of tepid growth in advertising spends on television. Our strategy during the last few years has been to create a formidable entertainment enterprise and invest in the business in a focused disciplined way."

The flagship channel, Zee TV, and Zee Marathi have lost market shares to competition.

"We are working towards correcting the loss in market shares in some of our businesses," said Goenka.

Shares of Zeel rose 1.1 per cent to close Monday at Rs 113.3 on the BSE.