500.com Limited Announces Unaudited Financial Results For the Fourth Quarter and Full Year ended December 31, 2019

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500.com Limited Announces Unaudited Financial Results For the Fourth Quarter and Full Year ended December 31, 2019

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SHENZHEN, ChinaFeb. 27, 2020 /PRNewswire/ -- 500.com Limited (NYSE: WBAI) ("500.com," "the Company," "we," "us," "our company," or "our"), a leading online sports lottery service provider in China, today reported its unaudited financial results for the fourth quarter and full year ended December 31, 2019.

Suspension of Online Sports Lottery Sales in China

All provincial sports lottery administration centers to which the Company provided sports lottery sales services have suspended accepting online purchase orders for lottery products in response to the Notice related to Self-Inspection and Self-Remedy of Unauthorized Online Lottery Sales (the "Self-Inspection Notice"), which was jointly promulgated by the Ministry of Finance, the Ministry of Civil Affairs and the General Administration of Sports of the People's Republic of China on January 15, 2015. In response to the Self-Inspection Notice, on April 4, 2015, the Company decided to voluntarily suspend all online lottery sales services. As a result of the provincial sport lottery administration centers' decision to suspend accepting online lottery orders and the Company's voluntary suspension of all online sports lottery sales services in China, the Company has not generated any revenue from these services since April 2015.

Temporary Suspension of Operations in Sweden 

The Multi Group ("TMG"), a Malta-based subsidiary of the Company, has temporarily suspended its operations in Sweden as TMG did not complete the renewal of its e-Gaming license before it expired. The Company has promptly issued 6-K report on January 13, 2020 and provided information update through 6-K report on February 20, 2020. TMG has submitted all the application materials and is in close communication with Sweden's eGaming regulatory authority to complete the renewal process as quickly as possible. The Company's revenues during the first quarter of 2020 have been materially and adversely impacted by the temporary suspension of TMG's operations in Sweden. Revenue generated by TMG accounted for approximately 89.7% of the Company's total net revenues during the fiscal year ended December 31, 2019, of which approximately 61.3% was generated from Sweden.

Fourth Quarter 2019 Highlights

  • Net revenues were RMB8.6 million (US$1.2 million), compared with net revenue of RMB9.8 million for the third quarter of 2019, and net revenue of RMB27.2 million for the fourth quarter of 2018.
  • Operating loss was RMB298.7 million (US$42.9 million), compared with operating loss of RMB98.4 million for the third quarter of 2019, and operating loss of RMB95.3 million for the fourth quarter of 2018.
  • Non-GAAP[1] operating loss was RMB60.1 million (US$8.6 million), compared with non-GAAP operating loss of RMB52.3 million for the third quarter of 2019, and non-GAAP operating loss of RMB70.1 million for the fourth quarter of 2018.
  • Net loss attributable to 500.com was RMB307.9 million (US$44.2 million), compared with net loss attributable to 500.com of RMB95.8 million for the third quarter of 2019, and net loss attributable to 500.com of RMB247.7 million for the fourth quarter of 2018.
  • Non-GAAP net loss attributable to 500.com was RMB64.5 million (US$9.3 million), compared with non-GAAP net loss attributable to 500.com of RMB49.7 million for the third quarter of 2019, and non-GAAP net loss attributable to 500.com of RMB93.2 million for the fourth quarter of 2018.
  • Basic and diluted losses per ADS were RMB7.16 (US$1.03).
  • Non-GAAP basic and diluted losses per ADS were RMB1.50 (US$0.22).

[1] Non-GAAP financial measures exclude the impact of share-based compensation expenses, impairment of
acquired intangible assets, impairment of goodwill, impairment of equity investments and deferred tax benefit
relating to valuation allowance. Reconciliations of non-GAAP financial measures to U.S. GAAP financial
measures are set forth in the table at the end of this release.
 

Full Year 2019 Highlights for Continuing Operations

  • Net revenues were RMB39.7 million (US$5.7 million), compared with net revenues of RMB126.1 million for full year 2018.
  • Operating loss was RMB634.4 million (US$91.1 million), compared with operating loss of RMB344.5 million for full year 2018.
  • Non-GAAP operating loss was RMB243.6 million (US$35.0 million), compared with non-GAAP operating loss of RMB235.9 million for full year 2018.
  • Net loss attributable to 500.com was RMB636.4 million (US$91.4 million), compared with net loss attributable to 500.com of RMB462.9 million for full year 2018.
  • Non-GAAP net loss attributable to 500.com was RMB240.8 million (US$34.6 million), compared with non-GAAP net loss attributable to 500.com of RMB225.0 million for full year 2018.
  • Basic and diluted losses per ADS were RMB14.85 (US$2.13).
  • Non-GAAP basic and diluted losses per ADS were RMB5.62 (US$0.81).

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