500 Dot Com reported substantial operating losses and at the same time made clear its statements that none of the major challenges it is facing has yet been solved.
Net revenues for the first quarter of 2020 were RMB3.1 million (US$0.4 million), compared with RMB11.6 million for the first quarter of 2019, an 88 percent year-on-year decline. Operating losses came in at RMB36.8 million (US$5.2 million).
The company noted that the online sports lottery services in China that had formed its original basis remain suspended and have not generated any revenue since April 2015.
Likewise, the operations of the The Multi Group (which became its wholly-owned subsidiary in April after the purchase of the remaining 7 percent share), have remained suspended in Sweden, its main market, due to a failure to successfully renew its license.
“The Multi Group has submitted all the application materials and is in close communication with Sweden’s e-Gaming regulatory authority to complete the renewal process,” the company statement said.
Meanwhile, 500 Dot Com also reported that its internal investigation regarding bribery allegations in Japan is still incomplete, and therefore there has been no resolution on this front either.