STS net profit increases 56.4% in H1

The adjusted earnings before tax, depreciation, and amortization (EBITDA), for the first half of this year, rose 34.1%, to PLN157m.

Entain CEE, Entain’s Central and Eastern Europe venture, acquired Poland’s largest sportsbook operator in June after Mateusz Juroszek and Zbigniew Juroszek (father and chief executive officer of STS) entered an agreement accepting Entain CEE’s offer.

Entain CEE paid PLN24.80 per STS share. The business now has an estimated enterprise value of PS690m, and a value of PS750m. This deal was closed on the 24th of August after STS shareholders, who held 155,591,656 STS shares, backed it.

Mateusz Juroszek, STS’s half-year report, said STS concentrated on optimizing its operations in the first six months. He also predicted increased activity from players for the second half of the year.

Juroszek said, “In the second half of the year we have continued to optimize processes in the STS Group.” In H1 we improved the financial results and adjusted EBITDA by 35% and 57% respectively.

We expect that the players’ activity will increase in the second part of the year, and this should positively impact our financial and operational indicators.

Consistent improvements year on year

STS has not provided a complete breakdown of the H1 results. The revenue grew by 13.7%, to PLN299m. Revenue grew 26.0% on an annual basis in the second quarter. Revenue increased by 7.4% in the first quarter.

The net gaming revenue for this period was PLN346m, an increase of 16.9% annually. Total bets in H1 increased by 5.1%, to PLN 2.30bn. The number of users active was 412,000.

The number of new registrations in the first half year was 109,000, while 72,000 clients made their initial deposits.

During the same period, STS also announced its intention to leave the UK market and Estonian one in order to concentrate on the operations of Poland.