Capacity in market space: 500.com Ltd (NYSE: WBAI)

500.com Ltd (NYSE: WBAI) stock raised 7.45% and closed at 2.74. The stock opened the session at $2.64 and touched its highest price point at $2.83. Its recent trading capacity is 91666 shares versus to its average trading volume of 50953 shares. The company stock lowest price point for the session stood at $2.55.

500.com Limited (WBAI) recently stated its unaudited financial results for the second quarter ended June 30, 2020.

Second Quarter 2020 Highlights

Net revenues were RMB3.6M (US$0.5M), contrast with net revenues of RMB3.1M for the first quarter of 2020, and net revenues of RMB9.7M for the second quarter of 2019.
Operating loss was RMB52.3M (US$7.4M), contrast with operating loss of RMB36.8M for the first quarter of 2020, and operating loss of RMB138.3M for the second quarter of 2019.
Non-GAAP[1] operating loss was RMB33.7M (US$4.8M), contrast with non-GAAP operating loss of RMB31.7M for the first quarter of 2020, and non-GAAP operating loss of RMB60.9M for the second quarter of 2019.
Net loss attributable to 500.com was RMB86.3M (US$12.2M), contrast with net loss attributable to 500.com of RMB36.8M for the first quarter of 2020, and net loss attributable to 500.com of RMB137.8M for the second quarter of 2019.
Non-GAAP net loss attributable to 500.com was RMB34.0M (US$4.8M), contrast with non-GAAP net loss attributable to 500.com of RMB35.3M for the first quarter of 2020, and non-GAAP net loss attributable to 500.com of RMB60.4M for the second quarter of 2019.
Basic and diluted losses per ADS were RMB2.01 (US$0.28).
Non-GAAP basic and diluted losses per ADS were RMB0.79 (US$0.11).

Second Quarter 2020 Financial Results

Net Revenues

Net revenues were RMB3.6M (US$0.5M) for the second quarter of 2020, representing a decrease of RMB6.1M or 62.9% from RMB9.7M for the second quarter of 2019 and a slight increase of RMB0.5M or 16.1% from RMB3.1M for the first quarter of 2020. Net revenues during the second quarter of 2020 primarily consisted of RMB3.0M (EUR0.4M) in revenue contribution from the Company’s online lottery betting and online casino in Europe through TMG, which accounted for 83.3% of total net revenues. The year-over-year decrease was mainly attributable to a decrease of RMB6.6M resulting from the temporary suspension of operations in Sweden.

Operating Expenses

Operating expenses were RMB55.1M (US$7.8M) for the second quarter of 2020, representing a decrease of RMB37.1M or 40.2% from RMB92.2M for the second quarter of 2019, and a raise of RMB11.1M or 25.2% from RMB44.0M for the first quarter of 2020. The year-over-year decrease was mainlyBecause of a decrease of RMB10.9M in expenses for employees as a result of decrease in headcount, a decrease of RMB6.8M mainly in amortization associated with purchased intangible assets, a decrease in bad debt provision of RMB5.7M for receivables, a decrease of RMB4.1M in rental expenses mainly Because of the termination of leases for subsidiaries in Hong Kong, Japan and Hangzhou since the local offices were closed, a decrease of RMB2.9M in travelling expenses, a decrease of RMB2.0M in consulting expenses, a decrease of RMB1.6M in share-based compensation expenses associated with share options granted to the Company’s employees, a decrease of RMB2.2M in platform service costs for TMG associated with its reduction in online lottery and online casino operations, a decrease of RMB1.0M in lottery insurance costs, and a decrease of RMB0.7M in account handling expenses. The sequential increase was mainly Because of a raise of RMB13.5M in share-based compensation expenses associated with share options granted to the Company’s employees, which was partially offset by a decrease of RMB1.9M in consulting expenses and a decrease of RMB1.5M in expenses for employees.

Cost of services was RMB4.6M (US$0.7M) for the second quarter of 2020, representing a decrease of RMB10.4M or 69.3% from RMB15.0M for the second quarter of 2019, and a slight increase of RMB0.6M or 15.0% from RMB4.0M for the first quarter of 2020. The year-over-year decrease was mainly attributable to a decrease of RMB6.8M mainly in amortization associated with purchased intangible assets, a decrease of RMB2.2M in platform service costs for TMG associated with its reduction in online lottery and online casino operations, a decrease of RMB1.0M in lottery insurance costs, and a decrease of RMB0.7M in account handling expenses.

Sales and marketing expenses were RMB5.0M (US$0.7M) for the second quarter of 2020, representing a decrease of RMB4.6M or 47.9% from RMB9.6M for the second quarter of 2019, and a raise of RMB2.0M or 66.7% from RMB3.0M for the first quarter of 2020. The year-over-year decrease was mainly attributable to a decrease of RMB3.3M in expenses for employees and a decrease of RMB0.5M in travelling expenses. The sequential increase was mainly Because of a raise of RMB1.7M in share-based compensation expenses associated with share options granted to the Company’s employees.

The price moved ahead of -22.61% from the mean of 20 days, -25.38% from mean of 50 days SMA and performed -48.71% from mean of 200 days price. Company’s performance for the week was -25.54%, -31.33% for month and YTD performance remained -68.14%.

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