500.com swings to loss on 64% revenue fall

Business News

500.com unveiled their financial results for the second quarter of 2020, net revenue had fallen by 64 per cent to RMB3.6M ( €0.4 ).

Net revenues during the second quarter of 2020 primarily consisted from the company’s online lottery betting and online casino in Europe

The year-over-year decrease was mainly due to an impairment provision of RMB57.2 million provided for goodwill during the second quarter of 2019.

The Multi Group a Malta-based subsidiary of the Company, has temporarily suspended its operations in Sweden as TMG did not complete the renewal of its e-Gaming license before it expired.

TMG has submitted all the application materials and is in close communication with Sweden’s e-Gaming regulatory authority to complete the renewal process.

The Company’s revenues for the second quarter ended June 30, 2020 have been, and for the fiscal year of 2020 are expected to be, materially and adversely impacted by the temporary suspension of TMG’s operations in Sweden.

Revenue generated by TMG accounted for approximately 89.7% of the Company’s total net revenues for the fiscal year ended December 31, 2019, of which approximately 61.3% was generated from Sweden.