Following a year of unprecedented financial achievements, STS Group is withdrawing from the gambling markets of the United Kingdom and Estonia. The company plans to allocate more resources to its primary Polish market.
STS currently operates online sports betting platforms in the UK and Estonia, offering services that encompass traditional sports betting, virtual sports, and esports.
The company’s remarkable success in Poland has prompted its decision to exit these markets. After disclosing its 2022 financial performance, the company stated that its resources are most effectively utilized by concentrating on its core market.
STS achieved exceptional results in 2022.
STS disclosed that the total amount wagered by players in 2022 surged by 4.2% to 46.8 billion Polish zlotys (approximately £8.684 billion / €9.793 billion / $10.6 billion), compared to 44.9 billion Polish zlotys in 2021.
The group’s overall gaming revenue also experienced a significant increase, with STS’s gross gaming revenue rising by 9.2% to 11.9 billion Polish zlotys in 2022 from 10.9 billion Polish zlotys in 2021.
STS also announced that during the same period, net gaming revenue (inclusive of gambling taxes and winnings) reached 6.63 billion Polish zlotys, compared to 5.65 billion Polish zlotys in the preceding year.
The group also reported that its adjusted EBITDA was between 2.65 billion and 2.75 billion Polish zlotys.
Exceptional fourth-quarter revenue
A key factor contributing to this growth was a particularly robust fourth quarter. The operator reported a record net gaming revenue of 2 billion Polish zlotys, representing a 47.0% increase from the fourth quarter of 2021.
Conversely, STS’s online gaming income in the second trimester of 2022 declined by 16.6% in comparison to 2021.
The sports wagering operator also revealed other favorable outcomes for the quarter, including a 13% rise in total wagers placed, a 40% increase in active participants to 542,000, and a 32% rise in enrollments to 202,000.
In the final quarter of 2022, STS also recorded 154,000 first-time depositors, compared to 60,000 a year prior.
Robust sports schedule
Mateusz Juroszek, Chairman of the Management Board of STS Holding, stated that the record earnings and performance were propelled by a robust sports schedule.
“We have attracted nearly 200,000 new participants to our services, and in the past three months, we have had nearly 500,000 active users.”
Juroszek continued to explain how the operational data supports the group’s decision to prioritize the Polish market in 2023.
“Last year’s operational data clearly demonstrated that despite the extremely challenging economic climate – the conflict in Ukraine, high inflation, and economic stagnation – the domestic market is in a growth phase.
“From the outset of this year, we have centered our business on Poland. Our objective for 2023 is to enhance operational efficiency and implement some cost-reduction measures.”
The fresh agreement with the Polish Football Association, concentrating on the Polish market, and the advantages from the company’s restructuring will enhance our profits and result in even greater revenue expansion.
STS and the Polish Football Association (PZPN) have been collaborating since 2014, with STS becoming the official sponsor of the Polish national team in 2018.
STS was initially listed on the Warsaw Stock Exchange in December 2021, and its current share price is 17.51 Polish zloty.
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