500 com net loss widens in 19Q4

Chinese lottery company 500 dot com recorded a widened net loss in the fourth quarter of 2019, reaching RMB307.9 million (US$44.2 million), mainly due to a decrease in revenue and a number of impairment provisions. 

Net revenues fell 68.4 percent to RMB8.6 million – which was mostly derived from its operations in Europe through The Multi Group (TMG), which accounted for 98.8 percent of revenues. 

TMG, however, suffered a loss in revenue due to the temporary suspension of its operations in Sweden for failing to complete the renewal of its e-Gaming license before it expired.

TMG said it has submitted all the application materials and is in close communication with Sweden’s e-gaming regulatory authority to complete the renewal process as quickly as possible, but noted that the Company’s revenues during the first quarter of 2020 will also be adversely impacted by the temporary suspension of TMG’s operations in Sweden. 

The company has also suffered from the suspension of online sports lottery sales in China, which has been in place since 2015. 

500 said it does not expect to issue any earnings forecast until it receives clear instructions as to the resumption date of online sports lottery sales from the Ministry of Finance.