SBC News Voice of the Sports Betting Industry
Mateusz Juroszek, the CEO of STS Group, Poland’s largest bookmaker which accounts for +51% of market share has shed light on the company’s strategic reorganisation, refocusing growth in its home market.
Speaking to SBC, Juroszek cites confidence in the company’s ability to deliver its targets for 2023 and spoke candidly about its strategic long-term objective beyond Polish boundaries.
“We are very pleased with the results for Q1 2023. They confirm both that STS is performing very well in the current situation,” Juroszek revealed. “We have costs under control, we are improving the indicators that are important for investors – turnover, EBITDA and net profit. Despite high inflation, customers are increasing their spending, which demonstrates the strength of our offering.
When discussing STS’s market presence in Poland, Juroszek remained optimistic about the company’s potential for growth. “For us, Poland is a very attractive market,” he shared. “We see a possibility for market growth of up to 15% year-on-year in the coming years. STS is the largest bookmaker in Poland.
“We have about half of the Polish market, taking into account NGR. We have the largest customer base, use our own technology, and invest tens of millions of zlotys a year in it.”
STS recently underwent a strategic review, resulting in the termination of its UK and Estonian businesses. However, this decision seems to have been influenced by the company’s current intention to focus on its home market.
Juroszek hinted at potential international expansions in the future, saying: “We are currently focusing on Poland, where the market is growing strongly. We are hoping for liberalisation of the law and then we will introduce an online casino. Ultimately, we are thinking about entering other markets. This may happen through acquisitions, but this is something we want to consider in following years.”
Critics have suggested that following its Warsaw IPO, STS’s business model might be too conservative for a rapidly growing business. Juroszek responded to these claims by highlighting the company’s stable and debt-free financial situation.
“From time to time we hear claims that our business model is conservative. I see it differently,” he remarked. “We have a very well-functioning business with no burdens on the cost side. We have no debt, so the cost of debt service does not affect us. We are consistently improving results and paying dividends.”
Regarding the company’s ambitions to commercialise its proprietary technology platform, the CEO refrained from making any declarations but did not rule out the possibility.
“We continually invest in technology development,” he said. “Our financial statements show what an important part of the business this is for us. Ultimately, we do not rule out the commercialisation of our platform.”
Juroszek also commented on the recent trend of European gambling plcs, such as Entain and Betsson, expanding eastwards. He seemed confident about STS’s stronghold on the Polish market.
“There are already several large international operators in Poland, but their entry into this market has not changed much in terms of market share. Still half of the market counted by NGR belongs to STS,” he stated.
The tightening regulation across all gambling verticals in Europe has been a hot topic in the industry. The CEO indicated that STS is ready to adapt to these changes. “We have seen for some time that markets in Europe and the world are regulating strongly. Each country is introducing its own regulations.
“Some markets, such as the UK, have become over-regulated, with many operators finding it too expensive to be present here. Such an environment means that national champions like STS can grow in their home markets even more effectively.”
As for why STS should be in the industry’s spotlight in 2023, Juroszek summed it up by stating: “In 2023, we are focusing on efficiencies. We are working on our costs, implementing new functionalities, investing in technology and developing our specialist teams. Our goal is to improve profitability and grow turnover, EBITDA and net profit. In addition, we are already implementing further tools for our customers in order to be ready for the next major tournament – Euro 2024.”
With a positive Q1 behind them and a clear vision for the future, STS and Mateusz Juroszek are setting their sights on continued growth and dominance in the gambling industry. Their strategic moves and robust business model make them a company to watch closely in 2023 and beyond.
