As reported by: Reuters
Shares in British betting firm Sportech Plc tumbled on Thursday after it ended a loss-making interactive gaming deal with broadcaster ITV and said this would cost it 14 million pounds ($25 million) in 2005.

Sportech launched Littlewoods Bet Direct on ITV's interactive platform in June 2004, the only fixed-odds betting service to be made available within ITV's interactive menu.

But analysts said the service failed to take off as potential betters looked to the Internet for a wider variety of online services offered by fast-growing new entrants like Sportingbet and poker giant Partygaming .

By 0945 GMT, Sportech shares were 9.6 percent down at 11.7p, valuing the firm at around 69 million pounds ($121 million).

Sportech said in a statement the deal with Britain's biggest commercial broadcaster ITV, agreed early in 2002, had been terminated with immediate effect and by mutual consent.

"As a consequence of the termination, the 2005 results are expected to be impacted by an additional exceptional charge of approximately 14 million pounds reflecting the write off of payments already made to ITV, related assets and redundancies," Sportech said.

"The contract has been loss-making for Sportech since inception, including an expected operating loss of 4 million pounds in 2005 due to low revenues," it added.


Article By: Reuters