New acquisitions ameliorate 500.com losses

Three recent acquisitions helped to lower the impact of losses at Chinese online lottery firm 500.com in the third quarter, its latest results show.

The company continues to struggle following the imposition of a “temporary” online lottery suspension by the Chinese government over two years ago (see previous reports).

500.com posted a Q3-2017 net loss of  RMB 72.2 million ($10.9 million) following quarterly net revenues of RMB43.2 million ($5.5 million), up from RMB19.3 million in the second quarter and nothing at all in Q3-2016.

Recent acquisitions by the company helped soften the impact of a tough quarter, including 500.com’s 93 percent stake in Nordic-facing online lottery company Multilotto acquired earlier this year for Euro 49.8 million (see previous report).

Multilotto contributed 52 percent of overall revenues, and holds out the promise of continued and increasing improvement in the fourth quarter.

Other acquisitions include a 40 percent interest in Chinese retail lottery operator Loto Interactive Ltd, and an online social poker enterprise.

Expenses rose in the quarter due to the integration costs of the new acquisitions, but the company has a comfortable cash buffer of $91.5 million still in its coffers.

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