STS Group H1 2023 Results: PLN 157 Million Adjusted EBITDA

STS Group, a prominent iGaming operator in Central Europe and dominant presence in Poland, reported revenues of PLN 299 million (£56 million/€65.4 million/US$70 million) for the first half of 2023, reflecting a 14% year-on-year growth. Over the same period, the Group’s net profit surged by 57% from the previous year to reach PLN 97 million. Furthermore, the adjusted EBITDA for STS Group in the first half of 2023 stood at PLN 157 million, marking a substantial 35% rise compared to the same period in the prior year.

Delving deeper into the metrics, the Net Gaming Revenue (NGR) for STS Group in H1 2023 was nearly PLN 346 million, up by roughly 17% from PLN 296 million recorded in the previous year. Additionally, from January through June 2023, the total value of wagers placed by STS Group’s clientele amounted to PLN 2.302 billion. This figure represents a 5% year-on-year increment from the PLN 2.189 billion documented the preceding year.

In terms of user engagement, STS Group noted that there were 412,000 active users in the first half of 2023. During this timeframe, the operator also registered 109,000 new accounts, with 72,000 of these new users making their initial deposits.

In strategic shifts, 2023 saw STS Group discontinuing its ventures in foreign markets, specifically in the UK and Estonia, restricting new account registrations. This manoeuvre aims to optimize and fully harness the potential of the Polish iGaming market.

Significantly, on 7 July 2023, Entain Holdings (CEE) Ltd expressed its intent to acquire shares of STS Holding S.A. by announcing a tender offer for 156,725,958 shares, effectively covering 100% of STS Holding’s share capital. By 24 August 2023, as a result of this transaction, Entain Holdings (CEE) Ltd successfully procured 155,591,656 shares of STS Holding S.A.

For context, Entain Holdings (CEE) Ltd operates as a subsidiary of Entain PLC. The share distribu,”tion of Entain CEE sees Entain PLC holding 67.5%, Emma Capital at 22.5%, and the Juroszek family foundations (Mateusz and Zbigniew) owning the remaining 10%. In addition to STS Group, Entain Holdings (CEE) Ltd also possesses SuperSport, a leading iGaming entity in Croatia.

“In the second quarter of this year, we continued to optimise processes within the STS Group. Therefore, in H1 of the year we significantly improved both the financial result and the adjusted EBITDA, which increased by 57% and 35% year on year, respectively. We assume that in the second half of the year the activity of our players will be higher, which should have a positive impact on our operational and financial indicators,” says Mateusz Juroszek, President of the Management Board of STS Holding.