500.com CEO resigns after first-quarter losses

Net revenue in the opening period of the year amounted to RMB98.9 million (€14.3 million/$15.9 million), which represents a year-on-year increase of 10%, but a 32.4% drop on the final quarter of last year.

Total purchase amount came in at RMB1.3 billion, up 23.8% on a year-on-year basis, but down 25.7% from the amount posted in the fourth quarter of 2014.

Elsewhere, operating loss amounted to RMG53.5 million in the period, compared to operating profit of RMB31.7 million in the corresponding quarter last year and operating profit of RMB19 million in Q4 of 2014.

The losses come at a difficult time for 500.com, which is currently not generating any revenue due to a temporary suspension of its services.

As of March this year, all provincial sports lottery administration centres to which the firm provides sports lottery services have temporarily stopped accepting online purchase orders for lottery products due to a government request.

As a result of the closure, 500.com has been hit by a heavy decline in transaction volume.

Man San Law will retain his role as chairman, with president Zhengming Pan stepping in as chief executive officer.