Net profit at Polish sports betting operator STS Holding grew 56.4% to PLN97m (£18.1m/€21.1m/$22.6m) in the first half of 2023, a period in which it agreed to be acquired by Entain CEE for £750.0m.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for the half-year rose by 34.1% to PLN157m.
The news that Entain CEE – Entain’s Central and Eastern Europe (CEE) venture – would acquire Poland’s leading sportsbook operator came in June, after Mateusz Juroszek, chief executive of STS, and his father Zbigniew, entered into an agreement to accept Entain CEE’s acquisition offer.
Entain CEE paid PLN24.80 per STS share. This put the business at an equity value of £750m and an enterprise value of an estimated £690m. The deal closed on 24 August, after STS shareholders – holding 155,591,656 in STS shares – backed the deal.
On the half-year, Mateusz Juroszek said STS focused on optimising its operations during the six months, adding that he projects increased player activity for H2.
“In the second quarter of this year, we continued to optimise processes within the STS Group,” said Juroszek. “Therefore, in H1 of the year we significantly improved both the financial result and the adjusted EBITDA, which increased by 57% and 35% year on year, respectively.
“We assume that in the second half of the year the activity of our players will be higher, which should have a positive impact on our operational and financial indicators.”
Steady year-on-year improvements
STS did not provide a full breakdown of its H1 results. Revenue grew 13.7% to PLN299m during the period. The revenue rise was aided by the 26.0% year-on-year increase in revenue reported in the second quarter of the year. In the first quarter, revenue ticked up by 7.4%.
Net gaming revenue was PLN346m for the period, increasing by 16.9% yearly. The total value of bets for H1 spiked 5.1% to PLN2.30bn, while the number of active users was recorded at 412,000.
New registrations during the half-year amounted to 109,000 while 72,000 customers made their first deposits.
Also during the six months, STS announced that it would leave the UK and Estonian markets to focus on its operations in Poland.