Issuing a short market update, embattled New York-listed Chinese sports lottery operator 500.com has disclosed the sale of its 63% equity stake in Asian digital payment processor Sumpay.cn ( Sumpay).
Payment processor, Sumpay, is licensed to provide third-party payment services in Chin. 500.com revealed that it had invested in Sumpay holding company Zhejiang Shangmeng Technology in December 2015 for a cash consideration of $36 million (£24 million).
Updating its investors 500.com governance stated that the company expects to net circa $19 million profits as a result of its Sumpay equity sale.
Troubled 500.com continues to be effected by its ‘temporary’ lottery suspension imposed by China’s Ministry of Finance (sanctioned in February 2015). As a result, the lottery operator has reported four consecutive quarters with no corporate revenues.
In its latest earnings call, 500.com reported combined operating losses of RMB -37 million ($5 million). 500.com governance would further announce that due to its imposed restrictions the company could no longer offer a corporate guidance for 2016.
Source: SBC News
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