500.com Limited Announces Unaudited Financial Results For the Second Quarter of 2017

Second Quarter 2017 Highlights

Mr. Zhengming Pan, the CEO of 500.com, stated, "We voluntarily and temporarily suspended our online lottery sales operations in response to the promulgation of the Self-Inspection Notice. Such temporary and voluntary suspension materially and adversely impacted our financial results for the second quarter of 2017. We want to restate that the Company was one of the two entities approved by the Ministry of Finance in 2012 to provide online lottery sales services on behalf of the China Sports Lottery Administration Center. In particular, such approval mandated that the China Sports Lottery Administration Center use its best effort to develop an online lottery sales management system as part of a pilot program for online lottery sales in China, and once such a management system is finished, the China Sports Lottery Administration Center should apply again for approval from the Ministry of Finance for official commencement of online lottery sales in China. The Company notes that it has been working and will continue to work with the China Sports Lottery Administration Center to develop the management system. To the best of the Company's knowledge, the approval by the Ministry of Finance for the Company to provide online lottery sales services on behalf of the China Sports Lottery Administration Center is valid and has not been revoked or amended as of the date of this earnings release."

"As part of our effort to expand our business scope and create additional revenue sources, we have commenced our sports information and mobile gaming businesses since the fourth quarter of 2016, and have witnessed steady revenue growth from them. We have also acquired approximately 40.65% of the issued share capital of MelcoLot Limited in June 2017 and completed the acquisition of 93.0% equity interest of The Multi Group Ltd in July 2017. We believe that these businesses and strategic acquisitions will create strong synergies with our existing operation platform."

Second Quarter 2017 Financial Results

Net Revenues

Net revenues were RMB19.3million (US$2.8 million), representing a significant increase from RMB1.2 million for the second quarter of 2016 and an increase of 4.9% from RMB18.4 million for the first quarter of 2017. Net revenues for the second quarter of 2017 were primarily generated from mobile gaming and sports information services, which commenced in the fourth quarter of 2016 and continued to grow.

Operating Expenses

Operating expenses were RMB89.7 million (US$13.2 million), representing a decrease of 6.8% from RMB96.2 million during the second quarter of 2016, and an increase of 8.3% from RMB82.8 million during the first quarter of 2017. The year-over-year decrease was mainly due to a decreases in share-based compensation expenses associated with share options granted to the Company's employees of RMB22.9 million, which was partially offset by increases in marketing and promotional expenses relating to mobile gaming and sports information services of RMB5.5 million, rental expenses of RMB3.6 million for the Company's new office, depreciation and amortization associated with acquired intangible assets of RMB1.8 million, salary expenses of RMB2.8 million for mobile gaming and sports information services and a bad debt provision of RMB2.4 million provided for other receivables during the second quarter of 2017. The sequential increase was mainly attributable to increases in marketing and promotional expenses relating to mobile gaming and sports information services of RMB3.9 million, salary expenses of RMB2.6 million, a bad debt provision of RMB2.4 million provided for other receivables during the second quarter of 2017 and travel expenses of RMB0.8 million, which were partially offset by a decrease in share-based compensation expenses associated with share options granted to the Company's employees of RMB2.9 million.

Cost of services was RMB5.7 million (US$0.8 million), representing an increase of 67.6% from RMB3.4 million during the second quarter of 2016, and a slight decrease of 3.4% from RMB5.9 million during the first quarter of 2017. The year-over-year increase was mainly attributable to increases in amortization associated with acquired intangible assets of RMB3.1 million and account handling expenses related to the Company's mobile distribution channels of RMB0.7 million, which were partially offset by a decrease in share-based compensation expenses associated with share options granted to the Company's employees of RMB1.4 million.

Sales and marketing expenses were RMB15.1 million (US$2.2 million), representing an increase of 33.6% from RMB11.3 million during the second quarter of 2016, and an increase of 38.5% from RMB10.9 million during the first quarter of 2017. The year-over-year and sequential increases were mainly attributable to an increase in marketing and promotional expenses relating to mobile gaming and sports information services.

General and administrative expenses were RMB53.3 million (US$7.9 million), representing a decrease of 15.8% from RMB63.3 million during the second quarter of 2016, and an increase of 4.3% from RMB51.1 million during the first quarter of 2017. The year-over-year decrease was mainly due to decreases in share-based compensation expenses associated with share options granted to the Company's employees of RMB16.1 million and depreciation and amortization expenses of RMB1.3 million, which were partially offset by increases in rental expenses of RMB3.6 million for the Company's new office, a bad debt provision of RMB2.4 million provided for other receivables during the second quarter of 2017 and salary expenses of RMB1.7 million. The sequential increase was mainly attributable to a bad debt provision of RMB2.4 million provided for other receivables during the second quarter of 2017, travel expenses of RMB0.8 million and salary expenses of RMB0.8 million, which were partially offset by decreases in share-based compensation expenses associated with share options granted to the Company's employees of RMB1.1 million and consulting expenses of RMB0.9 million.

Service development expenses were RMB15.6 million (US$2.3 million), representing a decrease of 14.3% from RMB18.2 million during the second quarter of 2016, and a slight increase of 4.7% from RMB14.9 million during the first quarter of 2017. The year-over-year decrease was mainly due to a decrease in share-based compensation expenses associated with share options granted to the Company's employees of RMB3.4 million, which was partially offset by an increase in salary expenses of RMB1.7 million for mobile gaming and sports information services. The sequential increase was mainly attributable to an increase in salary expenses of RMB1.2 million, which was partially offset by decreases in share-based compensation expenses associated with share options granted to the Company's employees of RMB0.5million.

Operating Loss

Operating loss was RMB69.5 million (US$10.3 million), compared with operating loss of RMB89.4 million during the second quarter of 2016, and operating loss of RMB63.9 million during the first quarter of 2017.

Non-GAAP operating loss was RMB43.7 million (US$6.4 million), compared with non-GAAP operating loss of RMB40.7 million during the second quarter of 2016, and non-GAAP operating loss of RMB35.1 million during the first quarter of 2017.

Net Loss Attributable to 500.com

Net loss attributable to 500.com was RMB52.6 million (US$7.8 million), compared with net loss attributable to 500.com of RMB27.7 million during the second quarter of 2016, and net loss attributable to 500.com of RMB62.3 million during the first quarter of 2017. The year-over-year increase was mainly attributable to a gain from the disposal of Sumpay.cn of RMB64.8 million recognized during the second quarter of 2016, there was no such gain recognized during the second quarter of 2017. Which was partially offset by an increase in revenues generated from mobile gaming and sports information services of RMB18.1 million and a reversal of uncertain tax liabilities of RMB18.6 million during the second quarter of 2017. The sequential decrease was mainly due to a reversal of uncertain tax liabilities of RMB18.6 million during the second quarter of 2017, which was partially offset by an increase in operating expenses of RMB6.9 million during the second quarter of 2017.

Non-GAAP net loss attributable to 500.com was RMB26.8 million (US$4.0 million), compared with non-GAAP net income attributable to 500.com of RMB21.0 million during the second quarter of 2016, and non-GAAP net loss attributable to 500.com of RMB33.6 million during the first quarter of 2017.

Cash and Cash Equivalents, Restricted Cash, Time Deposits and Short-term Investments

As of June 30, 2017, the Company had cash and cash equivalents of RMB606.1 million (US$89.4 million), restricted cash² of RMB439.0 million (US$64.8 million) and short-term investments of RMB115.0 million (US$17.0 million), compared with cash and cash equivalents of RMB1,413.4 million, restricted cash of RMB2.3 million, and short-term investments of RMB100.0 million as of March 31, 2017.

Prepayments and Other Current Assets

As of June 30, 2017, the balance of prepayment and other current assets was RMB45.8 million (US$6.8 million), compared with RMB70.4 million as of March 31, 2017. The balance as of June 30, 2017 mainly included: (i) the current portion of deferred expenses of RMB7.9 million (US$1.2 million); (ii) receivables of deposits of RMB17.6 million (US$2.6 million); (iii) receivables from third party payment service providers of RMB4.3 million (US$0.6 million); and (iv) other receivables of RMB16.0 million (US$2.4 million). 

Business Outlook

The Company will not make earnings forecast until it receives clear instruction on the resumption date of online sports lottery sales from the Ministry of Finance.

Currency Convenience Translation

This announcement contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars were made at the exchange rate of RMB6.7793 to US$1.00, as set forth in the H.10 statistical release of the Federal Reserve Board on June 30, 2017.

About 500.com Limited

500.com Limited (NYSE: WBAI) is a leading online sports lottery service provider in China. The Company offers a comprehensive and integrated suite of online lottery services, information, user tools and virtual community venues to its users. 500.com was among the first companies to provide online lottery services in China, and is one of two entities that have been approved by the Ministry of Finance to provide online lottery sales services on behalf of the China Sports Lottery Administration Center, which is the government authority that is in charge of the issuance and sale of sports lottery products in China.

Safe Harbor Statements

This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," "going forward," "outlook" and similar statements. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company's control, which may cause the Company's actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

About Non-GAAP Financial Measures

To supplement the Company's financial results presented in accordance with U.S. GAAP, the Company uses non-GAAP financial measures, which are adjusted from results based on U.S. GAAP to exclude share-based compensation expenses in our consolidated affiliated entities. Reconciliations of non-GAAP financial measures to U.S. GAAP financial measures are set forth in table at the end of this release, which provide more details on the non-GAAP financial measures.

Non-GAAP financial information is provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors' overall understanding of the historical and current financial performance of the Company's continuing operations and prospects for the future. Non-GAAP financial information should not be considered a substitute for or superior to U.S. GAAP results. In addition, calculations of this non-GAAP financial information may be different from calculations used by other companies, and therefore comparability may be limited.

For more information, please contact:

500.com Limited

ir@500wan.com

Christensen

In China
Mr. Christian Arnell
Phone: +86-10-5900-1548
E-mail: carnell@christensenir.com

In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@ChristensenIR.com

500.com Limited
Condensed Consolidated Balance Sheets
(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$"), except for number of shares)
		December 31, 2016				June 30, 2017				June 30, 2017
		RMB				RMB				US$
		Audited				Unaudited				Unaudited
ASSETS
Current assets:
Cash and cash equivalents			673,102				606,077				89,401
Restricted cash			3,704				438,962				64,750
Time deposits			804,692				-				-
Short-term investments			100,000				115,000				16,963
Prepayments and other current assets			125,534				45,763				6,751 Werbung Mehr Nachrichten zur Bit Mining Ltd ADR Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 12:14 - PR Newswire BlackRock Latin American Investment Trust Plc - Dividend Exchange Rate Set 11:44 - PR Newswire BlackRock Income and Growth Investment Trust Plc - Portfolio Update Der KI-Boom ist vorbei!    Aber dieser heiße Sektor verspricht, weiter zu wachsen... weiterlesen» Anzeige wo-site-teaser-box-16737_site-teaser-box_2024-04-23_09%253A00%253A00_2024-04-24_09%253A00%253A59