Mobile good for Hong Kong online lottery

Hong Kong-based online lottery service provider 500.com released its Q2-2017 performance statistics this week, noting that mobile activity played a major role in boosting revenues.

Net revenues reached RMB 19.3 million in the quarter, a remarkable recovery from the RMB 1.2 million recorded in Q2-2016.

Despite these encouraging figures, the group reported an overall net loss of RMB52.6 million (US$8 million), hampered by the continued hiatus in Chinese government permissions for online lotteries.

Chief executive Zhengming Pan said that the improvement was mainly due to new mobile and sports information business strategies implemented in the fourth quarter of last year, which have produced steady revenue growth.

500.com has continued to pursue a strategy of expansion, acquiring an almost 41 percent interest in Melcolot, a Hong Kong-based investment holding company and lottery technology supplier, for a consideration of HK$322.2 million (US$41.3 million), and a controlling 93 percent interest in the Multi Group this (July) month for approximately Euro 49.8 million. Headquartered in Malta, Multi Group operates Multilotto.com, a successful Nordic-facing online lottery and casino platform.

“We believe that these businesses and strategic acquisitions will create strong synergies with our existing operational platform,” said Zhengming.