500.com sells stake in payment processor Sumpay


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.

Check Also

Brandt Iden: Sportradar – “US states taking a new approach to mobile wagering”

Brandt Iden, Head of Government Affairs at Sportradar, shares his views on how states that …

Catena looks West as Euro impairments stunt 2021 growth  

Catena Media Plc has underlined its long-term growth strategy and ongoing international expansion projects, as …

Google updates policy terms for NY sportsbook advertising

Google has updated its ‘US Gambling and Games’ advertising policy to allow for certified and state-licensed …