In this article, Mateusz Juroszek, CEO of STS Group, the largest bookmaker in Poland, reveals the company’s strategic reorganization with a focus on domestic market.
In an interview with SBC, Mateusz Juroszek expressed his confidence in the company’s ability to achieve its goals for 2023 and candidly shared his strategic long-term goal that goes beyond Poland.
He said: «We are very pleased with the results for Q1 2023. They confirm both that STS is performing very well in the current situation. We have costs under control, we are improving the indicators that are important for investors – turnover, EBITDA and net profit. Despite high inflation, customers are increasing their spending, which demonstrates the strength of our offering.»
While discussing STS’s presence in the Polish market, Juroszek expressed optimism about the company’s growth potential: «For us, Poland is a very attractive market. We see a possibility for market growth of up to 15% year-on-year in the coming years. STS is the largest bookmaker in Poland.»
«We have about half of the Polish market, taking into account NGR. We have the largest customer base, use our own technology, and invest tens of millions of zlotys a year in it.»
STS recently completed a strategic review which resulted in the termination of its operations in the UK and Estonia. However, this decision appears to be related to the company’s current intention to focus on the domestic market.
Yuroszek hinted at potential international expansion in the future, saying: «We are currently focusing on Poland, where the market is growing strongly. We are hoping for liberalisation of the law and then we will introduce an online casino. Ultimately, we are thinking about entering other markets. This may happen through acquisitions, but this is something we want to consider in following years.»
Following the IPO in Warsaw, critics speculated that STS’s business model might be too conservative for a rapidly growing business. In response to these remarks, Yuroszek stressed the stable financial position of the company, free from debt.
«From time to time we hear claims that our business model is conservative. I see it differently. We have a very well-functioning business with no burdens on the cost side. We have no debt, so the cost of debt service does not affect us. We are consistently improving results and paying dividends.»
The CEO did not make statements regarding the company’s ambitions to commercialize its technology platform, but did not rule out such a possibility.
«We continually invest in technology development. Our financial statements show what an important part of the business this is for us. Ultimately, we do not rule out the commercialisation of our platform.»
Juroszek expressed his opinion on the recent trend of European gaming companies such as Entain and Betsson to expand their presence to the east. He showed confidence that STS would successfully gain a foothold on the Polish market.
«There are already several large international operators in Poland, but their entry into this market has not changed much in terms of market share. Still half of the market belongs to STS.»
In the gambling industry, increased regulation across all sectors in Europe has become a hot topic of discussion. The CEO emphasized STS ‘willingness to adapt to these changes: «We have seen for some time that markets in Europe and the world are regulating strongly. Each country is introducing its own regulations.»
«Some markets, such as the UK, have become over-regulated, with many operators finding it too expensive to be present here. Such an environment means that national champions like STS can grow in their home markets even more effectively.»
On why STS deserves to be the focus of the industry in 2023, Yuroszek concluded: «In 2023, we are focusing on efficiencies. We are working on our costs, implementing new functionalities, investing in technology and developing our specialist teams. Our goal is to improve profitability and grow turnover, EBITDA and net profit. In addition, we are already implementing further tools for our customers in order to be ready for the next major tournament – Euro 2024.»
With a strong first quarter and a clear vision for the future, STS and Mateusz Juroszek are committed to further growth and dominance in the gambling industry. Their strategic moves and robust business model are drawing attention, and in 2023 and beyond, their company should be watched with great attention.
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