Ahead of Entain’s possible takeover of STS group, the company shows excellent financial health. Surely these figures will help push the deal through! (Photo by Denise Chan on Unsplash.com)
STS Group, the leading sportsbook operator in Poland, has announced an impressive 26% rise in net gaming revenue (NGR) in Q2 2023, placing the company in a robust position ahead of its impending acquisition by Entain. Notably, stakes for the quarter also grew by 3% compared to the previous year, reaching a total of PLN 1.103 billion ($278 million).
The total net gaming revenue (NGR) this quarter hit a significant PLN 170 million ($42.8 million), an undeniable uptick from last year’s PLN 135 million ($34 million). In terms of Gross Gaming Revenue (GGR), STS reported a 14% increase, which translates to PLN 298 million ($75.1 million) this year as against PLN 263 million ($66.3 million) in the same period in 2022.
CEO Mateusz Juroszek expressed confidence in the company’s performance, asserting that these figures bear testament to the company’s strong growth in Poland’s iGaming market. He anticipates record player activity in Q4.
Entain Share Prices: Not much has happened with Entain’s share prices just yet. Usually, acquisitions don’t affect this type of deal too much. You can see the iGaming shares report here, and tomorrow we have another report due on 25 July.
STS: A Winner in Poland’s iGaming Market
Poland’s dominant sportsbook operator, STS, continues to affirm its strong market position, as evidenced by its remarkable Q2 results. This performance bodes well for the company’s forthcoming acquisition by Entain, a move that’s expected to reinforce STS’s market leadership.
Juroszek’s statement highlights the company’s effective market exploitation and confirms the high potential of Poland’s domestic iGaming industry. STS’s bullish Q2 results indicate its strategic advantage and promise robust player activity for the remainder of the year. Check STS’s financials on Google Finance.
Entain’s £750 million ($945 million) acquisition of STS, scheduled to finalise soon, will likely further propel the company’s success in the market. The deal has received the green light from STS’s two largest shareholders, Mateusz Juroszek and Zbigniew Juroszek, who together own a majority 70% of STS. It has also secured antitrust approval from the president of the Office of Competition and Consumer Protection.
| Metrics | Q2 2022 | Q2 2023 | % Change |
|---|---|---|---|
| Stakes (PLN billion) | 1.066 | 1.103 | 3.47% |
| Net Gaming Revenue (PLN million) | 135 | 170 | 25.93% |
| Gross Gaming Revenue (PLN million) | 263 | 298 | 13.31% |
*all values in USD have been converted to PLN for uniformity
The Upsides and Downsides
On the positive side, the 26% increase in NGR represents a healthy growth trajectory for STS, implying effective strategies that are driving its revenue growth. The 14% rise in GGR similarly demonstrates a successful year, indicative of the company’s market-leading position.
On the downside, though, the 3% growth in stakes is comparatively moderate. It’s also worth noting that the latest figures exclude the company’s operations in Estonia and the UK, potentially obscuring a comprehensive understanding of the firm’s overall performance.
STS Group: A Brief Overview
STS Group is a leading player in Poland’s sports betting market. It offers a wide array of gaming and betting options, solidifying its position as an industry frontrunner. The company’s impending acquisition by Entain is expected to further consolidate its standing, driving robust growth in Poland’s thriving iGaming sector.
Entain Financial Performance: You can also check out the latest Entain Q1 financial performance here. IT showed a 15% (11%cc1) YoY Net Gaming Revenue (NGR) increase and 1%cc1 increase for online activities.
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