Losses continue for 500.com in second quarter
500.com has reported its unaudited financial results for the second quarter ended June 30, 2019.
As of the reporting date, the Company had entered into framework agreements with Tianjin, Hunan and several other provincial (including regional and municipal) sports lottery centers and started operations in Tianjin, Hunan, Hubei, Guangxi and several other provinces and cities in China.
The Company is committed to assisting sports lottery sales organizations throughout the country to improve the distribution of physical sales channel outlets in order to facilitate sports lottery ticket purchases and optimize the experience of lottery purchasers.
Net revenues were RMB11.1 million (US$1.6 million), compared with RMB14.3 million for the first quarter of 2019, and RMB30.4 million for the second quarter of 2018.
Operating loss was RMB138.3 million (US$20.1 million), compared with operating loss of RMB97.3 million for the first quarter of 2019, and operating loss of RMB72.0 million for the second quarter of 2018.
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 The Multi Group, or TMG, in July 2017, and revenue from TMG is a major component of our current revenue. In addition, in March 2018, we entered into a framework agreement with CSLA, pursuant to which we will cooperate with CSLA to develop physical channels to sell sports lottery tickets. In that regard, we have entered into framework agreements with Tianjin, Hunan and several other provinces and cities in China to assist them in developing physical sales channels of sports lottery tickets.
We also have started operations in Tianjin, Hunan, Hubei, Guangxi and several other provinces and cities in China. We will continue to look for additional opportunities to enhance value for our shareholders.”