STS: Polish growth drives 29% rise in profit
In 2022, the Malta-based gaming business reported consolidated revenue of PLN579m (£108.5m/€123.5m/$132.5m), a 16.3% increase from the PLN498m the company achieved in 2021. On this revenue, STS recorded a 29% rise in net profit – increasing from PLN131m to PLN169m.
Adjusted earnings before interest, tax, depreciation or amortisation (EBITDA) grew PLN273m – a 26% increase. The EBITDA margin stood at 41.2% in 2022, compared to the 28.2% the company achieved the previous year.
The total staked on STS gaming products rose 4.2% between 2021 to 2022 from PLN4.49bn to PLN4.68bn. Despite the relatively modest increase, the number of active users grew 13.0% from 693,000 to 783,000. The company reported 439,000 new registrations and 317,000 new first deposits. The business said that “all operational data is at historical highs”.
“A very good year is behind us – we generated the highest operating results in the group’s history, which translated into extremely satisfactory financial results,” said Mateusz Juroszek, STS Holding CEO. “We will soon make a decision regarding the payment of dividends.
“In accordance with the applicable policy, we will pay 100% of the profit of STS Holding SA to the shareholders. Due to the structure of the group, we will make two payments, as was the case last year.”
The operator said that its 2022 financial results indicate the “extremely high attractiveness” of the Polish gaming market. The business said that it is planning a wholesale reorganisation of its operations in 2023.
This effort – aimed at increasingly profitability – will mean that the company will withdraw from the UK and Estonian markets to more fully concentrate on Poland, which makes up the bulk of STS’ revenue.
“The plan for the current year is to focus on a number of efficiencies,” said Juroszek. “We will focus on Poland to increase profitability and fully exploit the potential of the dynamic market. We will also implement savings and improve our product. We assume that turnover, NGR as well as EBITDA will be higher this year than last.”
In the business’ fourth-quarter results, the company highlighted its PLN167m revenue, a 43% year-on-year increase compared to the same period the previous year. The three-month period ending 31 December also saw a 290% year-on-year increase in net profit, at PLN58m. Adjusted EBITDA for the quarter was PLN83m, a 122% rise from the previous period.
The total amount staked by STS customers was PLN1.38bn in Q4, as opposed to the PLN1.22bn the company reported the previous year. In terms of non-financial metrics, this amounted to 542,000 active customers, 202,000 new registrations and 154,000 first time deposits.