## Polish Growth Propels 29% Profit Surge – Strategy – iGB
The Central European wagering firm STS Gaming Group emphasized its Polish operations in its 2022 annual financial report, as it highlighted a 29% profit jump for the year.
The Malta-based betting company reported combined revenue of 5.79 billion Polish zloty (about £108.5 million / €123.5 million / $132.5 million) in 2022, a 16.3% increase from 4.98 billion Polish zloty in 2021. Within that revenue, STS’s net profit climbed by 29%, from 1.31 billion Polish zloty to 1.69 billion Polish zloty.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to 2.73 billion Polish zloty, a 26% increase. The EBITDA margin in 2022 was 41.2%, compared to the company’s 28.2% EBITDA margin the previous year.
Total wagers placed on STS gaming products increased by 4.2% from 44.9 billion Polish zloty to 46.8 billion Polish zloty between 2021 and 2022. Despite the relatively modest growth, the number of active users rose by 13.0% from 693,000 to 783,000. The company reported 439,000 new registered users and 317,000 new first-time depositors. The company stated, “All operational data is at an all-time high.”
“We experienced a very successful year – we generated the highest operating performance in the Group’s history, which resulted in extremely satisfactory financial outcomes,” said Mateusz Juroszek, CEO of STS Holding. “We will soon be making a decision on dividend payments.”
In line with applicable regulations, we will be distributing all of the earnings of STS Holding SA to investors. Because of the group’s framework, we will be making two disbursements, just like in the previous year.
**Market Departure**
The operator stated that its 2022 financial performance showed the “very high appeal” of the Polish gambling market. The company said it intends to completely reorganize its operations in 2023.
This endeavor to enhance profitability will mean the company will leave the UK and Estonian markets to concentrate more fully on Poland, which accounts for the majority of STS’s income.
“The plan this year is to focus on some efficiencies,” Juroszek stated. “We will concentrate on Poland to improve profitability and take full advantage of the potential of the dynamic market. We will also implement cost-cutting measures and enhance our offerings. We anticipate turnover, NGR and EBITDA to be higher this year compared to the previous year.”
**Fourth Quarter Outcomes**
In the company’s fourth-quarter outcomes, it highlighted revenue of PLN 167 million, up 43% year-over-year. Net profit for the three months ending December 31 also rose 290% year-over-year to PLN 58 million. Adjusted EBITDA for the quarter was PLN 83 million, up 122% from the previous period.
Total bets placed by STS customers in the fourth quarter amounted to PLN 1.38 billion, compared to PLN 1.22 billion reported by the company last year.
This signifies that we have 542,000 active participants, 202,000 fresh registrations, and 154,000 initial deposits.
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