500.com Q1 earnings, revenue blow past estimates

    Chinese sports lottery company 500.com reported Q1 earnings that far exceeded expectations, with the total amount of lottery tickets purchased almost doubling. The company said non-GAAP earnings per American Depositary Share were $0.15, far exceeding estimates for $0.08. Net revenues surged 127.3 percent to $14.4 million, again topping forecasts for $12.2 million. 500.com said the total amount of bets purchased was $169.7 million, up 95.4% year-over-year, while traffic through its mobile channel was strong and now accounts for more than a quarter of total purchases. For Q2, the company expects the total purchase amount to be between $214.0 million and $222.0 million, again almost double the previous year’s figures. Despite the stellar results, shares in the company fell 12 percent in U.S. trading, shaken by reports in Chinese newspapers that lottery officials have warned that online sites are not officially authorised. In theory, 500.com is one of two providers permitted to operate online sports lottery sales on a trial basis.