500.com posts widened loss on impairment provisions

500.com Logo

China lottery service provider 500.com has continued to suffer from the suspension of online lottery in the country, posting a widened net loss of RMB137.8 million (US$19.6 million) in 19Q2. 

500 said the widened loss was due to an impairment provision of RMB57.2 million for goodwill during the second quarter of 2019 and a reversal of uncertain tax liabilities of RMB20.7 million during the second quarter of 2018. 

The company, however, said it has been engaged in “new and promising” initiatives to widen its revenue base, such as the acquisition of The Multi Group (TMG) in 2017, and an agreement with CSLA to develop physical channels to sell sports lottery tickets.

Despite this, net revenues fell 63.5 percent to RMB11.1 million in the second quarter of 2019. 

500 said revenue in the quarter came primarily from revenue contribution from the Company’s online lottery betting and online casino in Europe through TMG, which accounted for 99.1% of total net revenues. 

The year-on-year decrease, however, was due to a website migration of the TMG website, which forced users to re-register, causing an RMB16.1 million decrease in revenue. 

The company said it also ceased its operation of sports information services in China in March 2019, resulting in an RMB3.1 million decrease in revenue. 

Previous articleWynn Resorts revenue up across all properties in Q2
Next articleGenting Malaysia bids to privatize Resorts World Catskills

Related Articles

Akimoto heading for rearrest in bribery scandal

Does Japan IR process invite misfortune?

Every nation that hosts casinos or IRs develops their own set of regulations to govern the industry, but did Japan just happen to throw together a jumble of elements into the mix that has actively invited misfortune?

Okinawa politician seeks to join ruling party after taking 500 Dot Com bribe

Mikio Shimoji, forced to leave the Japan Innovation Party (Osaka Ishin) after admitting to receiving a bribe from then-IR hopeful 500 Dot Com, has been attempting, so far unsuccessfully, to join the ruling LDP, which has not punished any of its lawmakers for taking the bribes.

Lawmaker Akimoto makes first bail request

Former Senior Vice-Minister of the Cabinet Office Tsukasa Akimoto has made his first request to the Tokyo court for bail after he was rearrested on witness tampering charges in connection with the 500 .com bribery case.

Two former 500. com advisers found guilty

Two former advisers to a Chinese gambling operator seeking to enter Japan’s nascent casino market were found guilty Monday of bribing a Japanese lawmaker.
500.com says no breach of foreign corrupt practices act

500 .com declares itself innocent

It has been ten months since the 500 Dot Com bribery case broke into public view, but the net of justice has yet to fall upon and to wring confessions out of those who are widely believed to be the most guilty.
500.com says no breach of foreign corrupt practices act

500.com says no breach of foreign corrupt practices act

Online lottery company 500.com said a special investigative committee (SIC) established to probe its role into an alleged bribery scandal in Japan found that there had been no violation of the Foreign Corrupt Practices Act. 
500 .com auditor resigns over disagreement on Japan bribery case

500 .com auditor resigns over disagreement on Japan bribery case

Online sports lottery provider 500 .com has announced that its auditor, Friedman LLP, resigned last week in connection with the Japan bribery case, and that it has been able to appoint a new auditor. The statement said, “Friedman has elected to resign as the auditors of the company because of the disagreement with the management […]
Kamori given suspended sentence in bribery scandal

Kamori given suspended sentence in bribery scandal

Kimihito Kamori, former chairman of Kamori Kanko, has been sentenced to ten months in prison, suspended for two years, for his part in bribing lawmaker Tsukasa Akimoto on behalf of 500 .com’s scheme to build an IR at Rusutsu Village in Hokkaido. According to the charges, which the 77-year-old Kamori pleaded guilty to, he invited […]
Hokkaido’s Kamori faces imprisonment in 500 .com bribery case

Hokkaido’s Kamori faces imprisonment in 500 .com bribery case

Prosecutors have asked that Kimihito Kamori, the former chairman of Kamori Kanko, serve ten months in prison for his role in the 500 .com bribery case. Kamori had been seeking to win an IR bid for his resort in Rusutsu village, Hokkaido, which was in competition with the more powerful Tomakomai bid within the northern […]

500 .com resumes its business in Sweden

500 .com has announced that its Malta-based subsidiary The Multi Group has been granted a renewed e-Gaming license for two years for secondary lottery and casino from Sweden’s e-Gaming regulatory authority. Revenue generated by The Multi Group accounted for approximately 89.7 percent of the company’s total net revenues for the fiscal year ended December 31, […]