Entain has announced the first stage of its withdrawal from its Central and Eastern European business, agreeing to sell a 20% interest in Entain CEE to joint venture partner EMMA Capital in a transaction valued at approximately €425 million.

The global betting and gaming group said the deal includes an initial payment of €395 million upon completion, followed by an additional amount in early 2027 that will depend on the unit’s financial performance during fiscal year 2026. The agreement places an enterprise value of roughly €2.1 billion on Entain CEE, equivalent to about 10 times EBITDA.

The company expects the transaction to close during the fourth quarter of 2026, pending regulatory approvals. Entain intends to use the proceeds to reduce debt, a move that it estimates will generate annualized interest savings of around £20 million.

The sale marks the beginning of a broader strategy to exit the business entirely. Entain stated that it continues to assess options for disposing of its remaining stake and plans to direct future proceeds toward lowering reported leverage below three times EBITDA before returning excess capital to shareholders.

Strategy Focused on Value Creation and Simplification

Management said the decision reflects its goal of increasing shareholder value while simplifying the group’s corporate structure. Entain believes the transaction allows it to realize value generated since the creation of Entain CEE in 2022.

The venture was established following Entain’s acquisition of a 75% stake in Croatian operator SuperSport from EMMA Capital. The business later expanded with the addition of Polish sportsbook operator STS, acquired in a deal valued at £750 million.

Since becoming part of Entain CEE, both SuperSport and STS have maintained leading positions in their respective domestic markets. The company also highlighted operational progress, including the migration of the STS sportsbook onto the SuperSport platform.

Entain CEE generated net gaming revenue of £522 million during fiscal year 2025, representing a 7% increase from the previous year. EBITDA also rose 7% to £184 million. On a pro forma basis, the company said online net gaming revenue and EBITDA achieved double-digit compound annual growth between 2023 and 2025.

Stella David, Chief Executive Officer of Entain, said: “Our initial divestment is a decisive first step towards Entain fully exiting Entain CEE and reflects our ongoing focus on maximising value for shareholders. This enables us to unlock the value created by our Croatian and Polish businesses and demonstrates our robust capital allocation discipline.”

She added: “Driven by structural growth across our globally scaled portfolio and our improving operational execution, I am confident in our ability to deliver strong future cash-generation. Entain remains well positioned to be a long-term industry winner.”

Ownership Changes Following the Transaction

Upon completion, Entain’s ownership in the venture will fall from 67.5% to 47.5%. EMMA Capital’s stake will increase from 22.5% to 47.5%, while the remaining 10% will continue to be held by the Juroszek family.

According to details of the arrangement, the Juroszek family has granted EMMA voting rights attached to its shares, effectively giving EMMA control of the business. In exchange, the family will receive a put option covering its holding, exercisable in three stages over the three years following completion.

As a result of the transaction, Entain CEE will no longer be fully consolidated into Entain’s financial statements. Until a complete exit is achieved, Entain will continue recognizing its share of profits and dividends from the venture as a minority shareholder.

Financial Guidance Adjusted After Divestment

The company updated its fiscal 2026 outlook to reflect the planned deconsolidation of Entain CEE. Entain maintained its expectation for online net gaming revenue growth of between 5% and 7% in constant currency on a like-for-like basis.

However, projected online EBITDA margin has been revised to a range of 21% to 22%, compared with the previous forecast of 23% to 24% that included the CEE business. Despite the adjustment, Entain said it remains comfortable with market expectations for group underlying EBITDA, which analysts currently estimate at approximately £1.13 billion.

The company also reiterated that it remains on course to generate around £500 million in annual adjusted cash flow by 2028. Additional details regarding guidance are expected when Entain publishes interim results on 13 August 2026.

The disposal follows a period of mixed performance in the region. While Entain CEE delivered annual growth in revenue and earnings during 2025, net gaming revenue from the Central and Eastern European operations declined 6% year over year during the first quarter of 2026.

Even so, Entain continues to view the transaction as a key element of its capital allocation plans, positioning the company to strengthen its balance sheet while advancing its long-term objective of a complete exit from the Central and Eastern European venture.