• Home
• Entain Sells 20% of Entain CEE to EMMA Capital for €425 Million

Entain Sells 20% of Entain CEE to EMMA Capital for €425 Million

Entain Sells 20 Percent of Entain CEE to EMMA Capital – Operator Moves to Reduce Debt and Reshape Regional Exposure

Key Takeaways

• Entain has agreed to sell a 20 percent stake in Entain CEE to EMMA Capital for total proceeds of 425 million euros.
• The company will receive 395 million euros at closing, with a further payment due in early 2027 based on FY26 performance.
• After completion, Entain’s stake in Entain CEE will fall from 67.5 percent to 47.5 percent.
• EMMA Capital will gain majority control through a 42.5 percent stake and assigned voting rights from the Juroszek family.
• Entain plans to use the proceeds to reduce debt, expecting annual interest savings of around 20 million pounds.

Transaction Details and Financial Structure

Entain has initiated its planned withdrawal from Central and Eastern Europe with the sale of a 20 percent stake in Entain CEE to EMMA Capital. The agreed total consideration amounts to 425 million euros, equivalent to 366 million pounds.

Under the terms of the agreement, Entain will receive 395 million euros when the transaction closes. An additional payment will follow in early 2027, linked to the joint venture’s financial performance in the 2026 financial year. Combined, these payments bring total proceeds to 425 million euros.

The company stated that the net proceeds will be used to reduce debt. Entain expects this step to lower its annual interest costs by approximately 20 million pounds. The transaction is described as broadly neutral to earnings per share and adjusted cash flow.

Shift in Ownership and Control of Entain CEE

Following completion of the sale, Entain’s ownership in Entain CEE will decrease from 67.5 percent to 47.5 percent. EMMA Capital will increase its stake from 22.5 percent to 42.5 percent.

The Juroszek family will retain its 10 percent holding in the joint venture. However, it will assign its voting rights to EMMA Capital. As a result, EMMA Capital will obtain majority control of Entain CEE.

Entain CEE was established in 2022. The joint venture includes SuperSport in Croatia and STS in Poland. According to Entain, both brands hold number one positions in their respective markets.

For the 2025 financial year, Entain CEE reported net gaming revenue of 522 million pounds, representing growth of 7 percent. EBITDA reached 184 million pounds, also up 7 percent year on year.

Once the transaction closes, Entain CEE will no longer be fully consolidated in Entain group accounts. This accounting change affects how the group reports its financial performance going forward.

Updated Financial Guidance and Leverage Targets

With Entain CEE no longer included in full, the group has revised its FY26 online EBITDA margin guidance. The new expected range is 21 percent to 22 percent. Previously, when CEE was included, guidance stood at 23 percent to 24 percent.

Entain maintained its FY26 online net gaming revenue growth forecast at 5 percent to 7 percent.

The company also indicated that proceeds from a later full exit from Entain CEE are expected to help bring reported leverage below three times. Any surplus capital following that process would be returned to shareholders.

Entain shares remain down around 24 percent year to date, despite recovering some ground over the past month.

Strategic Context: Portfolio Simplification and Market Focus

The partial sale forms part of a broader strategy at Entain. Over the past year, the group has focused on simplifying its brand portfolio, lowering leverage, and concentrating on core regulated markets.

Chief executive Stella David described the transaction as the first step toward a full exit from Entain CEE. She stated that the divestment reflects the company’s ongoing focus on maximizing value for shareholders. She also said that Entain remains confident in its ability to generate strong future cash flow and is positioned as a long term industry participant.

The transaction marks a structural change in Entain’s exposure to Central and Eastern Europe. While the company retains a significant minority stake of 47.5 percent, operational control will shift to EMMA Capital.

Implications for Market Positioning in Central and Eastern Europe

Entain CEE’s portfolio includes leading brands in Croatia and Poland. With reported FY25 net gaming revenue of 522 million pounds and EBITDA of 184 million pounds, the unit represents a substantial regional business.

After completion of the sale, Entain will no longer fully consolidate these results in its group accounts. This will reduce the contribution of Central and Eastern Europe to reported group revenue and margins, reflected in the updated EBITDA guidance.

At the same time, the transaction provides immediate liquidity of 395 million euros and a deferred component linked to FY26 performance. According to Entain, the overall impact on earnings per share and adjusted cash flow is broadly neutral, while leverage is expected to decline as debt is repaid.

Our Assessment

Entain has executed a 20 percent sale of its Entain CEE joint venture to EMMA Capital for total proceeds of 425 million euros. The transaction reduces Entain’s stake to 47.5 percent and transfers majority control to EMMA Capital through increased ownership and assigned voting rights. The company plans to use the proceeds to reduce debt, targeting lower interest costs and leverage below three times following a full exit. Financial guidance for FY26 has been updated to reflect the deconsolidation of Entain CEE, while revenue growth expectations remain unchanged.