Entain is stepping back from its Central and Eastern European footprint, agreeing to sell a 20% stake in its CEE business to joint venture partner EMMA Capital as the first phase of a complete exit from the region.

The transaction values Entain CEE at €2.1 billion enterprise value, with EMMA Capital paying €395 million upfront, plus a performance adjustment in early 2027. Total consideration comes to approximately €425 million, with proceeds earmarked for debt reduction.

Strategic Pivot Away from Poland and Croatia

The divestment, expected to close in Q4 2026 subject to regulatory clearance, will rebalance ownership significantly. Entain’s stake drops from 67.5% to 47.5%, whilst EMMA Capital’s rises to 47.5%, with the Juroszek family retaining 10%. More importantly, management has signalled its intention to exit the CEE business entirely once this initial tranche completes.

Entain CEE encompasses STS in Poland and SuperSport in Croatia, both market leaders since acquisition. The Polish betting operator cost £750 million in 2023, while the Croatian sports betting and gaming business arrived via a €690 million stake purchase in 2022.

Chief Executive Stella David framed the move as disciplined capital allocation. “Our initial divestment is a decisive first step towards Entain fully exiting Entain CEE,” she said, emphasising the decision unlocks value created since the venture’s formation and simplifies the group’s overall structure.

Balancing Growth with Financial Flexibility

The exit serves multiple purposes. It aligns with shareholder value maximisation strategies whilst reducing group leverage below 3x and preserving capacity for capital returns. Future proceeds will support this financial flexibility objective.

CEE operations generated £522 million net gaming revenue in FY2025, up 7% year-on-year, with EBITDA climbing 7% to £184 million. That said, Q1 2026 saw NGR slip 6% compared to the prior year period, potentially influencing the timing of the divestment decision.

The transaction does impact near-term guidance. Entain has narrowed its online EBITDA margin forecast to 21% to 22% for FY2026, down from the previous 23% to 24% range, though it maintains faith in 5% to 7% online NGR growth in constant currency. Group underlying EBITDA consensus stands at £1.13 billion, and management remains on track to generate around £500 million in adjusted annual cashflow by 2028.

Fuller FY2026 guidance will land when interim results arrive on 13 August.