STS Group has confirmed that it will begin to ‘phase out’ its business activities in the UK and Estonia to strengthen its objective to increase profitability for investors.
The decision follows successful 2022 trading, which saw STS strengthen its position as Poland’s largest bookmaker, accumulating PLN 4.68bn (circa €1bn) in wagers.
2022 saw Poland’s market leader generate net-gaming-revenues (NGR) of PLN 663m (€142m), up 17% on 2021 results of PLN 565m, as STS leadership anticipates FY2022 corporate EBITDA to fall in the range of PLN 265-to 275m (€55-58m).
Achieving record KPIs, STS grew its active customer base to 783,000 in 2022, in which the company registered 439,000 new customers, with 317,000 players making their first deposit (2021: 249,000).
Maintaining growth in Poland, STS completes a successful first-full year trading as a Warsaw Stock Exchange (WSE) enterprise, in which results underline the “extreme attractiveness of the Polish betting market”.
As such, STS notified investors of its plan to initiate activities aimed at increasing profitability, in which corporate leadership has chosen to reorganise its non-domestic activities in the UK and Estonia.
Group CEO Mateusz Juroszek‘s statement outlined; “Operating data for last year clearly show that the domestic market is in a growth phase, despite the extremely difficult macroeconomic environment – the war in Ukraine, high inflation and economic stagnation.
“Therefore, we intend to use this potential as fully as possible and continue to strengthen our leading position in the country.”
At the start of 2020, STS became the first Polish gambling group to expand internationally by launching its UK sportsbook, an initiative that the global pandemic’s proceedings would blight.
A UK and Estonian exit were chosen as a course of action, as Juroszek warned investors that STS would have to navigate a tougher 2023, which will require full dedication on maintaining growth in Poland.
Juroszek added: “Our goal for the difficult year 2023 is greater efficiency of operations and a number of implemented savings.
“The new agreement with the Polish Football Association focus on the Polish market and a number of synergies resulting from changes in the structure of the Group will positively affect our profitability and facilitate further EBITDA growth.”