500.com, a provider of lottery services in China reported soaring revenue for Q2, helped by the early July acquisition of TMG Group, an online lottery betting and online casino platforms operated out of Malta.
Net revenues were RMB30.4 million ($4.6 million) compared with RMB4.6 million in the first quarter of last year. The net loss attributable to 500.com was RMB52.9 million, almost equivalent to the RMB52.6 million loss reported for the same period of last year.
The U.S.-listed company said the boost in revenue came primarily from TMG, which accounted for 89.1 percent of the total.
China banned the sale of online lottery products in 2015, triggering a slump in income for 500.com and a search to broaden its revenue base.
“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,” said
CEO Zhengming Pan. “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. In addition, we have started a trial operation in Tianjin Municipality. We will continue to look for opportunities to enhance shareholders’ value.”