The Q2 report is STS’ first financial report since last month’s announcement that Entain would be acquiring the operator in a £750m deal.
Following the announcement, the Juroszek family, which owned 70% of the business’ share capital, received a 10% stake in Entain CEE, the joint venture investment vehicle used to acquire the company.
However, this is set to fall to 5% if the STS does not hit certain financial targets. Entain also said that current chief executive Mateusz Juroszek is to stay on following the acquisition.
STS achieves steady growth
This revenue, running from April to June this year, rose from PLN135m (£26.0m/€30.4m/$34.0m) to PLN170m. This represents STS total revenue excluding its less profitable UK and Estonian operations.
When these other jurisdictions were accounted for, the company as a whole reported revenue rise 14% to PLN298m, compared to the PLN263m announced in the same time the previous year.
The business announced that it received PLN1.10bn in stakes, a 3% rise from the PLN1.07bn achieved by the business the previous year.
“The operating results for Q2 2023 confirm that STS is performing well in the Polish market,” said STS CEO Mateusz Juroszek.
“The potential of the domestic igaming industry is high and STS is able to effectively exploit its market position. We hope to record the highest player activity in the last quarter of this year.”
Business sees decline in non-financial metrics
In terms of non-financial metrics, the company said its Polish business saw 52,000 new registrations, compared to 63,000 the year before.
The number of active users in Poland also fell significantly to 301,000, compared to 348,000 in the same period in 2022.
STS also emphasised in the report it is planning to exit the UK and Estonian markets, in order to focus more fully on Poland.
Juroszek becomes largest GiG shareholder
The report follows this week’s news that the Juroszek family has become the largest GiG shareholder, with an 11.08% stake.
Mateusz Juroszek said the family’s investment in the “undervalued” business followed analyst estimates predicating 70% year-on-year EBITDA growth.
Original article: https://igamingbusiness.com/finance/quarterly-results/sts-polish-operations-26-q2/
