STS posts record-breaking results for 2021 and Q1 2022
Polish bookmaker reports a record level of EBITDA of PLN216m in Q1 2021
Warsaw-listed operator STS has announced its full-year results for 2021, which were the best in its history.
STS Group generated revenue of PLN498m (£92.04m), a year-on-year (YoY) increase of 28% on 2020’s PLN398m.
Net profit for the group also increased 29% YoY, reaching PLN131m. The main operating company of STS, STS S.A, achieved its best net result reaching PLN153m, which was a YoY increase of 21%.
On the results of 2021, STS Holding CEO Mateusz Juroszek said: “Last year was extremely intense for us. Not only did we achieve the best financial results in the history of our entire group, but we also introduced STS Holding to the main market of the Warsaw Stock Exchange, and we also systematised our activities, simplifying the structure of the group.
“We have proved that thanks to numerous competitive advantages and a unique business model, we have achieved extremely attractive financial and operational results,” Juroszek added.
Alongside its full-year results, STS also announced record numbers for the first quarter of 2022.
In Q1, STS posted record quarterly net gaming revenue (NGR) of over PLN158m, a 15% YoY increase.
As a further positive for STS, EBITDA grew to PLN72m, a 17% increase.
Following PLN14.4m in taxes, STS walked away from Q1 with a net profit of PLN47.4m, up 7%.
The only real negative from the opening quarter’s results is that the firm’s operating costs rose significantly in certain areas. External services were the biggest hit at PLN45m, up 12.7%. Payroll expenses also rose 11.3% to PLN23m. Consumption of materials and energies went up 4% to PLN2m, and other costs were down 53% to PLN310,000.
The Polish bookmaker also saw a decline in player stakes of 3.9% to PLN1.08bn. The possible reason for this reduction is that the number of players also dropped from 359,000 to 338,000, with 41,000 first-time depositors and 64,000 new registrations.
Juroszek attributed the decline to the fact the operator is focusing on customer acquisition efforts towards the end of 2022 instead of earlier in the year.
Juroszek discussed the opening quarter of 2022, commenting: “Throughout the first three months of 2022, despite the war and inflation, we were able to achieve excellent operational and financial performance.
“During that period, adjusted EBITDA increased by 17% year-on-year. As declared, we will be sharing the generated profit with the shareholders of STS Holding.
The company is licensed to operate in Estonia and the UK, besides its home market of Poland, where online casino is prohibited.
In December, the company was listed on the Warsaw Stock Exchange with a market cap of PLN3.6bn. Jurosek and his family retain a 70% holding in the business.
Following the announcement, STS Holding’s opening share price of the day is PLN15.06, up 1.07%.