500.com Loss Widens Further on Europe Woes

China lottery service provider 500.com posted a widened net loss in the first quarter of 2019, reaching 93.2 million yuan (about US$14 million), due mainly to a fall in revenue.

Net revenues, which consisted primarily of revenue contribution from the company’s online lottery betting and online casinos in Europe through The Multi Group (TMG) fell 62.8% to 14.3 million yuan (about US$2.1 million) in the quarter.

The company said the decrease was mainly attributable to website migration in connection with the conversion of the Swedish license in TMG, which required users to re-register, and the cessation of sports information services in China in March 2019.

On Tuesday, the company also announced the replacement of its chairman, Huixuan Wang, effective June 1, 2019. Stepping into the chairman’s post is Xudong Chen, who has been the executive vice president of Tsinghua Unigroup since April 2019.

500.com has made several expressions of interest in the Japan IR market in the past, but it is not clear whether or not these efforts are continuing. (AGB)