STS nets NGR boost ahead of Entain deal closure 

STS Group, the subject of a £750m acquisition bid by Entain Plc, continues to consolidate its position as Poland’s market-leading sportsbook. 

Publishing its Q2 trading update, Warsaw-listed STS registered a 3% increase in wagering volume to PLN 1.103bn (€245m). 

Wagering growth was maintained despite STS disbanding its UK and Estonia businesses, a factor reflected in the firm’s customer KPI metrics as new registrations fell to 52,000, down from 63,000 recorded in the previous year. 

Q2 KPIs saw STS register 35,000 new depositing players, a drop compared to 2022’s reported 44,000, as the group’s active customer base stood at 301,000 users, a decrease from 348,000 reported last year. 

Despite observing “customer fluctuations”, STS declared an increase in Gross Gaming Revenues (GGR) to PLN 298m (€66m), reflecting a 14% uptick on 2022’s PLN 263m.

Maintaining growth in Poland, Net Gaming Revenue (NGR) received a 26% boost year-over-year, advancing from PLN 135m to PLN 170m (€37m). 

STS Holdings CEO Mateusz Juroszek expressed an optimistic outlook for 2023: “These Q2 2023 results confirm STS’s strong performance in the Polish market. The domestic iGaming industry holds high potential, and STS effectively leverages its market position. We are hopeful to record the highest player activity in the final quarter of this year.”

Year-to-date, STS cites an “upward trajectory in Poland” as H1 GGR stands at PLN 604m (€135m), up from PLN 542m in H1 2022, whilst group NGR stands at PLN 345m (€74m), an increase from PLN 291m in H1 2022.

H1 growth is maintained despite STS reporting an active customer drop to 410,000, as compared to 447,000 in H1 2022 – reflecting the group’s exit from international markets.

This week, Poland’s Office of Competition and Consumer Protection granted Entain Plc antitrust rights to proceed with its buyout of STS. 

The £750m deal has been accepted by the Juroszek Foundations, which hold approximately 70% of STS shares, as dealmakers seek to conclude the acquisitions by the end of Q3 trading.