500.com, a leading online sports lottery service provider in China, today reported its unaudited financial results for the third quarter ended September 30, 2018.

Net revenues were RMB30.1 million (US$4.4 million), compared with RMB30.4 million for the second quarter of 2018, and RMB29.0 million for the third quarter of 2017.

Operating loss was RMB105.3 million (US$15.3 million), compared with operating loss of RMB76.2 million for the second quarter of 2018, and operating loss of RMB78.7 million for the third quarter of 2017.

Non-GAAP[1] operating loss was RMB62.6 million (US$9.1 million), compared with non-GAAP operating loss of RMB56.9 million for the second quarter of 2018, and non-GAAP operating loss of RMB65.3 million for the third quarter of 2017.

Net loss attributable to 500.com was RMB101.6 million (US$14.8 million), compared with net loss attributable to 500.com of RMB52.9 million for the second quarter of 2018, and net loss attributable to 500.com of RMB72.2 million for the third quarter of 2017.

Non-GAAP net loss attributable to 500.com was RMB58.8 million (US$8.6 million), compared with non-GAAP net loss attributable to 500.com of RMB33.5 million for the second quarter of 2018, and non-GAAP net loss attributable to 500.com of RMB58.8 million for the third quarter of 2017.

Basic and diluted losses per ADS were RMB2.40 (US$0.35). Non-GAAP basic and diluted losses per ADS were RMB1.40 (US$0.20).

Mr. Zhengming Pan, the CEO of 500.com, stated, “Since we voluntarily suspended our online lottery sales operations in April 2015, we have continued to engage in new and promising initiatives to increase our revenue base. For example, we acquired TMG in July 2017, and this acquisition has significantly increased our revenue. In addition, in March 2018, we entered into a framework agreement with CSLA, under which, both parties plan to cooperate to develop physical channels to sell sports lottery tickets.

In that regard, we have entered into framework agreements with Tianjin, Hunanand several other provinces and cities in China, to assist them in developing physical sales channels of sports lottery tickets. We also have started trial operation in Tianjin, Hunan and several other provinces. We will continue to look for opportunities to enhance shareholders’ value.”