The Mortgage Choice broker franchise network continued to shrink during the December half. The company finished the year with 386 franchises - down from 391 last July and 449 in July 2018.The company's financial planner network stands at 33 - down from 36 in December 2018.The company put a positive spin on the state of its network, saying there was regeneration, with six new greenfields franchises and seven sales of existing franchises to new owners.The reduced network had a significant impact on the business. Loan settlements fell 4 per cent from A$5.3 billion in the December 2018 half-year to $5 billion in the latest half. However, settlements picked up strongly compared with the June half, when they were $4 billion.The value of the loan book was $54.3 billion, unchanged since the June half and down 0.4 per cent from December 2018.The company made a net profit of $4 million in the six months to December - down 38 per cent from $6.4 million in the previous corresponding period.The result also reflects the impact of a new franchise remuneration model, which was adopted in August 2018. Under the model, the amount paid to franchisees was increased and measures were taken to reduce the volatility of franchisee earnings. The average payout ratio to brokers during the half was 78 per cent of upfront commissions and 71.4 per cent of trail commissions.The company says the impact of the change was $1.5 million in the December half.During the half the company commenced a review of its organisational structure and long-term strategy. As a result, there was a $900,000 one-off restructuring cost.On a cash basis, the company reported net profit of $5.5 million - down 22 per cent from the previous corresponding period. And on a normalised basis, adjusting for the restructuring costs, cash profit was $6.1 million.The company's financial planning division made a loss of $328,000, compared with a loss of $46,000 in the previous corresponding period.Financial planning results were also affected by the new remuneration model and by expenses associated with a new IT platform.