Interactive gaming company NetPlay TV reported an underlying improvement in profitability, but admitted its collaboration with ITV had not worked out the way envisaged.
The company reported a 21 per cent rise in first half revenues to £11.3 million, and said total casino income was up 73 per cent to £8.8 million in the six months June 30.
As a result the company posted pre-exceptional EBITDA of £740,000, up from £120,000 a year earlier.
However the company posted a loss before tax for the period of £7.9 million once exceptional items and impairments were factored into the calculation.
The group has a television partnership with Channel 5 and hoped to repeat the success story with ITV.
“Unfortunately, the new soft gaming format did not perform in line with our expectations and has been a major cost to the company,” said chairman Clive Jones.
“We have taken swift and decisive action and I am pleased to report the cost cutting exercise and the renewed focus on our proven "live" casino format is starting to show positive signs as we rationalise the business.”
The ITV trial comes to an end during November, and discussions with broadcaster are ongoing, as is the restructuring of the business, the NetPlay said.
It will update shareholders on the outcome during the next quarter.
The company’s core live casino business remains strong, and although July was impacted by a large numbers of winners, it returned to normal patterns in August and September.
“Our business model is to deliver a great "live" gaming experience to our players; we have succeeded in doing this and today boast one of the largest "live" gaming businesses in the world,” the company said.
“We use our terrestrial tele-shopping relationships to acquire new customers and our TV relationships allow us to work in an exclusive arrangement with broadcasters. We are able to fully explain our offering using the power of TV and as such have proven we can acquire a substantial number of quality high value players.”