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Skill gaming firm FUN Technologies will close its betting exchange operations, after posting its first quarterly operating profit of £62,000.
FUN began life as betting exchange software firm Columbia Exchange Systems, before moving into skill gaming through the acquisition of US firm SkillJam.
Since then it has bought sports information firm Don Best and fantasy gaming site Fanball, and it now plans to concentrate on these three areas.
“Management believes the effect of this decision to discontinue exchange betting operations will positively impact the company's operating performance,” the firm said in a statement.
FUN will maintain its 24.6% ownership position in German business-to-business betting exchange firm Betbull, which is also co-owned by sportsbook BetandWin.
The firm recorded a post-tax loss of £2.4m, with half-year losses up to £4.4m, mostly as a result of charges related to its aggressive acquisition campaign.
But Lorne Abony, chief executive of FUN, said the EBITDA profit of £62,000 was a more significant figure going forward.
“FUN continues to be an active acquirer, and, as such, EBITDA is a more meaningful measure of operating performance because it excludes amortisation,” said Abony.
Consolidated revenues for the firm were up 55% from Q1 2005 to £2.3m, with SkillJam revenues up 29% and Don Best revenues up by 77%.
“The second quarter of 2005 was a period of meaningful revenue growth for FUN, [and] revenue at all of FUN's operating businesses continues to grow strongly,” Abony added.
