Entain Commences Full Exit from CEE Operations with 20% Divestment to EMMA Capital

Global iGaming operator Entain has initiated a strategic withdrawal from its Central and Eastern European (CEE) business, beginning with the sale of a 20% stake in Entain CEE. This transaction with its joint venture partner, EMMA Capital, represents the first step in Entain’s planned complete exit from its Polish (STS) and Croatian (SuperSport) market presences.

The agreement includes an upfront payment of €395 million ($448.6 million) upon the deal’s finalization, alongside an additional sum due in early 2027, which will be determined by Entain CEE’s financial performance in fiscal year 2026. The total cash consideration for this stake is projected to be approximately €425 million, implying an enterprise valuation of €2.1 billion for the entire Entain CEE entity. The net proceeds from this sale are designated for reducing Entain’s existing debt.

Pending necessary regulatory approvals, this divestment of the 20% interest is anticipated to conclude in the fourth quarter of 2026. Following the transaction, Entain’s shareholding will decrease from 67.5% to 47.5%. Concurrently, EMMA Capital's stake will increase from 22.5% to an equivalent 47.5%, while the Juroszek family will maintain its 10% share.

Entain articulated that this divestment aligns with its overarching strategy to maximize shareholder value and simplify its operational structure. The company aims to unlock the substantial value created within its CEE operations, which were established in 2022 through a partnership with EMMA Capital. This joint venture followed Entain’s initial €690 million purchase of a 75% stake in SuperSport in Croatia, later expanded by the £750 million acquisition of STS in Poland. Both SuperSport and STS have maintained their positions as market leaders in their respective countries.

Another key motivation for the CEE exit is to bolster Entain's balance sheet and enhance its financial flexibility. Future proceeds from the full divestment are intended to help reduce the group's leverage to below 3x and facilitate the return of any excess capital to shareholders. Entain CEO Stella David commented on the move, stating, “Our initial divestment is a decisive first step towards Entain fully exiting Entain CEE and reflects our ongoing focus on maximising value for shareholders.” She further noted that the move “enables us to unlock the value created by our Croatian and Polish businesses and demonstrates our robust capital allocation discipline.”

Although Entain CEE reported strong FY2025 results with a 7% year-on-year increase in NGR to £522 million and a 7% rise in EBITDA to £184 million, the first quarter of 2026 saw a 6% decline in NGR from CEE operations compared to the same period in 2025. Despite this, David expressed confidence in the company's long-term prospects, remarking, “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.”

In light of the 20% CEE divestment, Entain has updated its financial guidance for fiscal year 2026. The company reiterated its expectation of online NGR growth between 5% and 7% at constant currency. However, the projected online EBITDA margin has been revised downward, now anticipated to be between 21% and 22%, a reduction from the previous forecast of 23% to 24%. Entain remains comfortable with the compiled consensus of £1.13 billion for group underlying EBITDA, based on estimates from 11 analysts. The operator also reconfirmed its target of generating approximately £500 million in annual adjusted cash flow by 2028. Additional details on guidance are expected with the release of interim results on August 13.