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500.com operating profit takes a 44 percent hit

Thursday February 12,2015 : OPERATING PROFIT DROPS AT MAJOR ONLINE CHINESE LOTTERY FIRM
 
500.com operating profit takes a 44 percent hit as competition in the Chinese market intensifies.
 
The Chinese online sports lottery operator 500.com has warned that ticket sales may decline by as much as 3.3 percent this quarter after posting a 44 percent y-o-y decline in operating profits and noting that costs have doubled.
 
The Shenzhen-based company's stock pitched sharply down 6.1 percent to $18.01 following the warning, made necessary by falling numbers in a heavily competitive market.
 
The Bloomberg business news agency reports that competition is increasing among China’s online lottery sites as bigger Internet companies from Tencent Holdings Ltd. to web portal operators NetEase Inc. and Sina Corp. seek to expand their market share.
500.com’s fourth-quarter operating income plunged from the previous year as expenses more than doubled. The company said lottery purchase amounts may decline as much as 3.3 percent in January-March from the fourth quarter.
 
Independent market analysts say that 500.com's sales are not growing as fast as the market, and that the company has lost market share to competitors like Alibaba’s lottery site, while NetEase is getting more aggressive.
 
Management at 500.com said in a statement that total lottery purchases may be between 1.7 billion yuan ($272 million) and 1.8 billion yuan this quarter, which would represent a 3.3 percent decline to a 2.4 percent increase sequentially.
 
While active users increased 10 percent to almost 1 million last quarter, the figure compared with a 19 percent increase in China’s lottery ticket sales in December.
 
Market consolidation is also said to be gathering pace, with Tencent, China’s second-biggest Internet company, revealing in October that it was seeking to buy 7.5 percent of lottery technology provider China LotSynergy Holdings Ltd. for about $50 million
 
Bloomberg reports that a unit of Huiyin Household Appliances Holdings Co Ltd. in July signed a three-year deal to sell sports lottery tickets in Jiangsu province.



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Betradar Launches US Sports Betting Solutions - With only a few weeks to go until the betting and gambling world descends on ICE in London, Betradar have today announced that they will be launching a comprehensive range of tools and services to any company that will be looking to provide sports betting in a post-PASPA United States.

Abdelaouhab Zizi Wins MPNPT Morocco Main Event - Abdelaouhab Zizi has defeated fellow Casablanca resident Fadhil Farag heads up to win the 2018 MPN Poker Tour Morocco Main Event and MAD 375,000 (c. €33,220) after a two-way deal.

Final 12 For MPNPT Morocco - Sunday on the MPN Poker Tour Morocco will see several trophies awarded at the Mazagan Beach Resort, with the largest going to the Main Event champion along with a prize of MAD 400,000 (c.€35,400).

MPNPT Morocco Updates - Leading the 104 combined survivors from both flights is still Said El-Yousfi with 272,000 chips; visit the MPN Poker Tour blog for an end-of-day recap and full chip counts.

MPN Poker Tour Morocco Day 1A - The MPN Poker Tour has returned to Morocco this week (January 11-14), featuring the MAD 1.5 million guaranteed Main Event, accompanying side events, and the activities and parties for which this tour has now become known on two continents.

2018 MPN Poker Classic - The MPN announces the return of The Classic tournament series this January. The series is back following its successful €350,000 guaranteed debut in 2017. This time €500,000 is guaranteed, along with a once in a lifetime trip to Monaco for the Classic Champion.

PDC and Sportradar Renew Deal - Following this month’s hugely successful World Championship, the Professional Darts Corporation (PDC) and long-standing partners Sportradar have renewed their multi-faceted cooperation that will see the leader in sports data and content continuing in their role as official data

Poker Yaar Joins MPN - Available through download, instant play and mobile, Pokeryaar.com is live with Omaha, Hold’em and Five-Card poker variants, alongside MPN’s Fish Party, the industry’s only progressive jackpot SNGs.

New MPN Poker Rooms Tower Torneos - Impressed with Microgaming, having already integrated with the Quickfire platform to gain access to some of the industry’s best gaming content, Tower Torneos has extended the relationship with poker.<

NY Rangers vs. Devils on 12/21 - When the Devils and Rangers hit the ice on Thursday (7 PM ET on MSG), so too will two of the league’s top netminders. After a slow start to the season, Henrik Lundqvist has returned to his form of old. Through 29 games, he’s posted a 2.59 goals against average, and a .920 save percentage.

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