STS Holding has reported a record high in net gaming revenue for the first quarter of 2022, reaching PLN158 million. This marks a 15% increase compared to the previous year, even as the company experienced a decline in player stakes, which fell by 3.9% to PLN1.08 billion. The total number of active players also decreased from 359,000 to 338,000 during the quarter. STS saw 41,000 first-time depositors and 64,000 new registrations.
According to Mateusz Juroszek, president of the management board of STS Holding, the company plans to intensify its customer acquisition efforts in the latter half of the year, particularly around major sports events like the World Cup in Qatar that will feature the national team.
After deducting PLN16.2 million in bonuses, STS’s adjusted revenue stood at PLN142.6 million, an increase of 13.6%. Expenses rose as well, with external service costs being the largest at PLN45 million, up 12.7%. Employee payroll expenses also increased by 11.3% to PLN23 million. Costs associated with materials and energy rose by 4.0% to PLN2 million, although other miscellaneous expenses saw a reduction of 53.0%, totaling PLN310,000.
Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) grew to PLN72 million, reflecting a 17.0% year-on-year rise. Capital expenditures were recorded at PLN8 million, resulting in free cash flow of PLN64 million, an 8.5% increase. After accounting for depreciation and amortization, the operating profit reached PLN61.4 million, up 13.5%.
STS achieved a small net profit on financial items, producing a pre-tax profit of PLN61.9 million, which is a 10.0% increase. Following a tax deduction of PLN14.4 million, the net profit for the company was PLN47.4 million, up 7.0% from the prior year. Juroszek commented on the company’s performance amid challenging conditions, stating, "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 shareholders of STS Holding."
With a strong quarter behind it, STS now holds PLN305 million in reserve capital, including PLN185 million in cash and cash equivalents. The company went public last year with an initial public offering in December, issuing 46,874,998 shares at PLN23.00 per share, valuing the company at PLN1.1 billion and representing 30% of the total share capital. In 2021, STS announced record highs in stakes and active users.
