Entain has established a deal with EMMA Capital to sell a 20% stake in its Central and Eastern European business, known as Entain CEE. This transaction marks the initial phase of a complete exit strategy for the company in that region.
The deal is projected to be valued at around €425 million, which suggests an implied enterprise value of €2.1 billion for Entain CEE. Entain is set to receive €395 million at the time of closing, with an additional payment anticipated in early 2027, contingent on the financial performance for Fiscal Year 2026. The funds generated from this sale will be allocated to reducing debt.
Upon completion of the sale, Entain's stake in Entain CEE will drop from 67.5% to 47.5%, bringing it in line with EMMA Capital's ownership. The Juroszek family will retain a 10% interest in the business.
CEO Stella David stated, "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 capital allocation discipline."
Entain is also pursuing a complete exit from the CEE operations, which encompass STS and SuperSport.
In Fiscal Year 2025, Entain CEE reported net gaming revenue of £522 million, a 7% increase compared to the prior year, along with a 7% rise in EBITDA to £184 million. However, the company noted a 6% decline in revenue for the first quarter of 2026, contributing to the decision to explore exit options.
Additionally, Entain adjusted its Fiscal Year 2026 guidance following the agreement with EMMA Capital. The company anticipates online revenue growth of 5-7%, while expecting the online EBITDA margin to be in the range of 21-22%, down from the earlier forecast of 23-24%.
