The STS Group has prolonged the agreement for BetGames products
The bookmaker will continue to enjoy an exclusive license in Poland
The STS Group – one of the largest bookmakers in Central Europe and the market leader in Poland – has prolonged its agreement with TV Zaidimai Ltd. This means that the STS Group will remain the only operator in Poland offering bets for BetGames simulated card games. They are available through all sales channels used by the bookmaker. The parties to the agreement also decided that they will cooperate to expand the current games portfolio. The BetGames offer, together with virtual sports, is responsible for more than ten percent of the NGR (Net Gaming Revenue) generated by the STS Group.
The prolonged licence agreement provides access to a wide range of betting products which involve guessing the results of entertainment events consisting of simulated card games – war, poker and baccarat. BetGames products involve betting on the winning side of a card game (e.g. the player or the dealer) by guessing the final outcome of said game. In 2020, TV Zaidimai began to develop a “Polish table” for poker, exclusively for the STS Group, which provides the opportunity to meet Polish-speaking dealers. Due to considerable player interest in the product, the new agreement provides for further development of the BetGames project.
“We are not only the largest, but also the most innovative bookmaker in Poland. We are prolonging a partnership that is very important for us and grants us exclusivity to offer BetGames products in Poland. BetGames products are the best products in the simulated card games category on the Polish market. Player interest in products similar to BetGames products keeps growing, which is why, together with TV Zaidimai, we are investing in and personalising the offer for Polish players. The result is that these products are responsible for a significant portion of the NGR generated by the Group. The STS Group leads the Polish market in the categories of sports betting and betting on non-sports events, such as virtual sports or BetGames products,” says Mateusz Juroszek, CEO of STS Holding.
“We are delighted to strengthen and deepen our fruitful partnership for the long term. STS is not only the market leader in Poland, but also the innovation leader in the region and beyond. An ideal match for us to develop a challenging market together – with great success for both parties. We are in this with STS for the long run and I really look forward to disrupting STS’ markets together with their talented team and a new product pipeline that we’ll deploy in the coming months step by step. Truly exciting times with plenty of innovation ahead,” says Andreas Koeberl, CEO of TV Zaidimai Ltd.
The STS Group is the largest, in terms of turnover, bookmaker in Poland. The Group also conducts operations on an international scale through licences held in the Great Britain and Estonia, from where it offers its services in several markets. Products offered by the Group include sports betting, betting on virtual sports, online casino (outside Poland), BetGames products and a wide range of products which involve betting on results of esports events.
For many years, the Group has continued to implement a “mobile-first” strategy based on a bookmaking system developed by the Group itself. It has been constantly developing its own technological platform to meet customer needs and set market trends. In 2021, investments made by the Group in product portfolio and technological solutions amounted to PLN 29 million. In addition, in 2020, STS S.A. took control of a Czech technological company Betsys and currently owns 74% of its shares. Betsys is the main provider of IT solutions for the bookmaker in Poland, both for online channels and for retail channels. In total, the Group’s Product and Platform Development Team has 160 highly-qualified members, including 85 programmers, 55 other employees responsible for development of technologies and platforms and 20 employees responsible for business intelligence and business analytics.
Between January and March of this year, the STS Group generated a record-breaking quarterly NGR of over PLN 158 million, compared to nearly PLN 138 million in Q1 2021, PLN 136 million in Q4 2021, and close to PLN 158 million in Q2 2021, which was the previous best quarter in the history of the Group. NGR means the value of bets placed by customers less paid out winnings and gambling tax.
During the first three months of 2022, the value of bets placed by STS Group customers was nearly PLN 1.1 billion. The number of active users reached 350 thousand; the Group recorded 64 thousand new registrations, while 41 thousand customers made their first deposit.
“This year, we expect the Group’s NGR to increase by 15–20%, and the EBITDA margin to exceed 40%,” adds Mateusz Juroszek.
In 2021, the STS Group generated a record-breaking adjusted EBITDA of PLN 216 million, compared to PLN 151 million in 2020. This means a year-on-year increase of 43%. In 2021, revenue of the STS Group was PLN 498 million, compared to PLN 389 million in 2020, meaning a year-on-year increase of 28%. Net profit of the Group increased last year by 29%, reaching PLN 131 million. In 2021, STS S.A. – the main operating company of the STS Group – achieved a historic net profit of PLN 153 million, meaning a year-on-year increase of 21%. The STS Group recorded its best financial performance in history.
Profits made by STS Group companies will be transferred to STS Holding, and then, in accordance with its dividend policy, paid out to shareholders. The dividend policy of STS Holding assumes payment of 100% of standalone net profits. Given the holding structure of the Group, they will be paid out in tranches.
At the end of 2021, the Group had no external debts or liabilities towards banks, and the lines of credit extended to the Group were unused. Moreover, the STS Group had over PLN 146 million in free cash and cash equivalents.
In 2021, the STS Group generated an increase in consolidated NGR to a record-breaking PLN 565 million. A year earlier, the Group generated a consolidated NGR of approx. PLN 434 million. This means that year-on-year, the indicator increased by approx. 30%. Last year, the value of bets placed by STS Group customers was close to PLN 4.5 billion, compared to nearly PLN 3.6 billion in 2020, meaning a year-on-year increase of 25%.
In 2021, the number of active users was 693 thousand, compared to 557 thousand a year earlier, which means an increase of 24%. Between January and December 2021, the Group recorded 370 thousand new registrations, compared to 314 thousand a year earlier, meaning a year-on-year increase of 18%. Moreover, the number of customers who made their first deposit also increased: there were 249 thousand such customers in 2021, compared to 205 thousand a year earlier, which means a year-on-year increase of 21%.
STS Press Office
E-mail: [email protected]
About the STS Group
Founded in 1997, the Group is the largest bookmaker in Poland, and also conducts operations on an international scale. The bookmaker holds licences in the Great Britain and Estonia, from where it offers its services in several markets. The Group’s service portfolio includes sports betting, betting on virtual sports, online casino (except for Poland), BetGames products and a wide range of products which involve betting on results of esports events.
The Group provides its online services not only through its website, but also through a mobile version of that website as well as dedicated Android and iOS applications and a network of approx. 400 retail betting shops located throughout Poland. The Group is constantly expanding its offer, providing, among others, more live betting services and reinforcing its leading position in esports. The bookmaker also created its own pay-out system – STSpay – which enables quick transfers 24 hours a day, 7 days a week. The Group also owns the bookmaking system created by Betsys, and makes use of that system.
Through an efficient 24-hour Customer Service system, the Group is able to meet the growing needs of its customers. In addition, the company offers live online broadcasts of sports events via STS TV. This service is also available to mobile users. Each month, the company provides access to broadcasts of nearly 5000 sports events, including in such disciplines as football, tennis, volleyball, basketball and other sports.
The bookmaker is actively involved in supporting Polish sport, and is the largest privately owned entity in the domestic sponsorship market. The company is an official sponsor of the Poland national football team, a strategic sponsor of Lech Poznań, the main sponsor of Jagiellonia Białystok and the official bookmaker of Cracovia, Pogoń Szczecin, Górnik Łęczna, Zagłębie Lubin, the Polish Volleyball League as well as other sports clubs and associations. The Group is also involved in supporting esports.
The company has modern betting shops in every major city in Poland; in total, there are over 400 such shops located throughout Poland. The Group has over 1500 employees.
Since February 2019, the Group has been operating in European markets. Outside Poland, the bookmaker holds licences in the Great Britain and Estonia, from where it offers its services in several markets. The Group is the first Polish bookmaker to begin foreign operations. In addition, the Group conducts activities in the Czech Republic (Betsys) and in Malta. The Group is also looking at the Dutch market and thinking about applying for a licence to organise gambling in the Netherlands. The Group remains focused on Poland, but expects that its international offer, including the online casino, will become a growing and important part of its activities in the future. The company also does not rule out the possibility that it may become interested in new directions of foreign expansion and that it may commercialise the Betsys system in order to offer it to other betting operators in Central and Eastern Europe in markets where the Group does not operate.
Shares of STS Holding were first listed on the Warsaw Stock Exchange on 10 December 2021. Total value of the initial public offering was approx. PLN 1.1 billion, while capitalisation of the company stemming from the final price was approx. PLN 3.6 billion. Investors purchased 46,874,998 shares, i.e. 30% of the share capital of STS Holding. Average reduction in subscriptions made by retail investors was approx. 87.2%. Mateusz Juroszek and his family continue to hold 70% of shares in the company.
Net Gaming Revenue means staked amounts less gambling tax and winnings paid out to customers