Although the STS Group achieved record earnings in 2022, they will withdraw from the UK and Estonian gambling industries. Their focus will shift to their primary Polish market.
STS currently operates online sports betting platforms in the UK and Estonia, offering services like sports betting, virtual sports, and esports.
However, following their success in Poland, they have decided to leave these markets. The company stated in their 2022 financial results announcement that their efforts are best concentrated on their core market.
STS declared that the total amount of wagers placed by players in 2022 rose by 4.2%, from 4.49 billion zloty (868.4 million pounds/979.3 million euros/1.06 billion dollars) in 2021 to 4.68 billion zloty.
The group’s overall betting revenue also experienced an increase, with STS’s total betting revenue climbing by 9.2% from 1.09 billion zloty in 2021 to 1.19 billion zloty in 2022.
STS also announced that during the same period, net betting revenue (including betting taxes and bonuses) reached 663 million zloty, compared to 565 million zloty in the previous year.
The group also mentioned that their adjusted EBITDA was between 265 million zloty and 275 million zloty.
Exceptional fourth-quarter earnings
A significant factor contributing to this growth was the strong performance in the final quarter. The operator reported record NGR of 200 million zloty, a 47.0% increase compared to the fourth quarter of 2021.
Conversely, STS declared in the second quarter of 2022 that its net gaming income had fallen by 16.6% in comparison to 2021.
The sports wagering company also disclosed other favorable outcomes for the quarter, including a 13% rise in total wagers, a 40% increase in active participants to 542,000, and a 32% surge in sign-ups to 202,000.
STS also documented 154,000 first-time deposit users in the fourth quarter of 2022, compared to just 60,000 a year prior.
Robust Sports Schedule
Mateusz Juroszek, Chair of the Management Board of STS Holding, stated that the record earnings and performance were propelled by a robust sports schedule.
“Over the past three months, our offerings have attracted as many as 200,000 new participants. During the World Cup alone, we had nearly 500,000 active users.”
Juroszek continued to elucidate how the operational data supports the group’s decision to prioritize the Polish market in 2023.
“Last year’s operational data clearly demonstrates that the domestic market is in a growth phase, despite the exceptionally challenging macroeconomic climate – the war in Ukraine, high inflation and economic stagnation.
“Since the beginning of this year, we have focused our endeavors on Poland. Our objective for this demanding year 2023 is to enhance operational efficiency and implement certain cost-cutting measures.”
This fresh agreement with the Polish Football Association, focused on the Polish market, coupled with the positive outcomes of our group reorganization, will enhance our earnings and result in further expansion of our EBITDA.
STS’s collaboration with the Polish Football Association (PZPN) commenced in 2014, and they became the official sponsor of the Polish national squad in 2018.
STS was initially listed on the Warsaw Stock Exchange in December 2021 and is presently trading at 17.51 Polish zloty.
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