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Investment iGaming and future: STS Holding SA launches a new investment arm

STS Group is owned by STS Holding SA and is one of the leading sports betting and iGaming companies in Poland.

The company has been dominating the Polish market for almost 25 years and, according to data from the Ministry of Finance, has reached a 46% market share in 2020 in terms of turnover.

Since 2019, the company has expanded its presence internationally, currently providing services to as many as 1.5 million customers in Poland and Europe.

The iGaming sector is growing and every day there are thousands of people visiting dedicated platforms, producing substantial revenue increases for the business.

As a market with great growth potential, there are several opportunities for those operating in this sector.

With a view to expansion and enlargement in the future, STS Holding SA, would like to use a substantial portion of the 1.08 billion zlotys – corresponding to $266 million – raised during its initial public offering, as a new investment arm.

Bloomberg reported that the Juroszek family, which owns the company, plans to use some of the money raised from its public offering to focus on shares listed in Warsaw.

Precisely, the Juroszek family has chosen to sell a 30% stake in the company. This part, composed with bonuses from their Atal SA construction business, will be dedicated to financing an investment arm.

With that investment arm, the Group aims to acquire large stakes in a number of companies that have a high potential for growth and dividend payments.

CEO Mateusz Juroszek is currently interested in the technology, real estate and e-Commerce sectors, with the intention of acquiring approximately 20-30% of the company’s portfolio.

An ambitious project that Juroszek believes will take at least five years to complete.

A cutting-edge company operating in a mobile-first perspective

STS Group is the most popular and trusted bookmaker brand in Poland and, as revealed by an SW Research report from 2021, is recognizable to 45%ers.

The Polish group’s services include sports betting, virtual sports, online casinos, games with live dealers and plenty of variety in eSports.

The company is particularly focused on expansion through mobile services, which alone will constitute the largest sales channel for 69.4% of STS Holding SA’s revenue in 2020.

The company’s core strategy is mobile-first, with cutting-edge technology in the form of product and platform development, mobile tools, marketing solutions, business intelligence, and customer support.

As a leader in the iGaming sector, the company aims to expand its product offering to include live betting and eSports, using advanced solutions such as BetGames – live games with exclusive odds to allow customers to bet on Poker, iGaming and Baccarat.

In addition, the Group aims to maintain its leading position in:

– market share in Poland,

– customer experience,

– iGaming innovation.

The Group also has a privileged status and position in engaging with sports fans and plans further expansion into international markets.

STS Group: interest in e-Commerce

STS Group currently employs more than 1500 people and has over 400 physical retail outlets in Poland.

The company has four dedicated offices of which the main one is located in Katowice and the other locations are in Warsaw, Prague and Malta.

The STS Group team is young and dynamic, always creating an innovative working environment that can react quickly to the challenges of such a complex market as iGaming.

The Juroszek family controls 10% of the shares of asset directors Skarbiec Plot SA and Quercus TFI SA. Furthermore, they have stakes in Better Collective, Evolution AB and Flutter Entertainment.

The group is also showing interest in Allegro – Poland’s largest e-commerce platform, although the latter’s shares are down 56%, due to competitor Amazon.

“We are looking for marks in Dominant and Eastern Europe, but we don’t have anything specific on the radar,” Juroszek said.

In short, the company has an interesting business model, being a leader in the world of digital entertainment and sports betting, with a base of 1.5 million customers in Poland and Europe.

In addition, the company has no debt and the dividend outlook is substantial: the proposal for 2022 assumes a rate of around 4%.

In addition, the Group has specialized know-how to consolidate a business with a strong technological turnaround.

STS Holding offers sports betting, not only on football, basketball, volleyball and boxing. Their offer also includes betting on virtual sports results, eSports events and games with live dealers.

In addition, STS operates a digital casino with a focus on mobile gaming.

The latter accounted for more than 60% in 2020. In addition, STS is still present in traditional channels, with over 400 retail outlets.

In the iGaming industry, the ability to attract and retain new customers is key and STS is doing very well in this area.

iGaming is a $50 billion revenue generating industry that attracts more and more entrepreneurs every day.

The iGaming industry is very popular and rewarding, but it is also volatile and competitive and it takes more than a willingness to commit to succeed.

There are many opportunities for growth, but success is a combination of factors, such as competence, professionalism and the ability to develop effective strategies for the future.

These are all characteristics that STS Group seems to have and that will make it one of the most interesting names in Europe and most likely globally in the near future.

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