Entain CEE Business Valued at £1.9bn in EMMA Capital Deal
Stella David CEO of Entain
Entain has confirmed a significant divestment deal that values its Central and Eastern Europe business at £1.9 billion. The FTSE 100 betting and gaming operator announced the sale of a 20% stake to EMMA Capital for approximately €425 million, marking the first phase of a planned complete exit from the region. Entain CEE reported FY2025 net gaming revenue of £522 million, representing a 7% year-on-year increase, with EBITDA rising 7% to £184 million. With this in mind, Entain Group will dedicate net proceeds from the transaction towards reducing its current debt position of approximately £3.64 billion. The deal structure includes options for EMMA Capital to acquire the remaining stake, signalling a strategic shift in the company’s geographic focus.
Entain Agrees to Sell 20% Stake to EMMA Capital for €425 Million
The transaction agreement specifies total cash consideration of approximately €425 million, comprising €395 million payable upon completion with an additional payment scheduled for early 2027 to reflect FY26 financial performance. Completion is expected in Q4 2026, subject to regulatory approvals.
Upon completion of the transaction, Entain Group’s shareholding in Entain CEE will decrease from 67.5% to 47.5%, with EMMA Capital increasing its stake from 22.5% to 42.5%. The Juroszek family foundations will maintain their existing 10% shareholding. This ownership restructuring positions EMMA Capital as the largest voting shareholder in the joint venture.
Pavel Horák, Investment Director at EMMA Capital, stated that increasing the stake to become the largest voting shareholder was a logical next step for the Czech investment firm. A voting agreement additionally gives EMMA Capital influence over the Juroszek family’s 10% interest.
Consequently, following the 20% divestment, Entain CEE will no longer be fully consolidated into Entain Group’s financial statements. The ownership structure emerged from the original 2022 formation of Entain CEE, established as a 75:25 venture between Entain and EMMA Capital to pursue acquisitions across the CEE region.
How Does the Deal Value Entain CEE at £1.9 Billion?
The £1.9 billion valuation derives from an enterprise value of €2.1 billion, calculated at approximately 10 times EBITDA. Inasmuch as EMMA Capital paid €425 million for 20% of the business, the arithmetic points to a total enterprise valuation matching the stated figure. This multiple reflects the business’s operational performance, with Entain CEE generating EBITDA of £184 million in FY2025.
Entain CEE encompasses two primary operating assets: STS in Poland and SuperSport in Croatia. SuperSport, acquired by Entain Group in 2022, carried an initial valuation of €920 million, implying a transaction multiple of 9.6x 2022 EBITDA. The Croatian operator held a 54% market share in the regulated Croatian market at the time of acquisition. STS joined the portfolio in 2023 through a takeover valued at approximately £750 million[18].
The current valuation represents appreciation from these original acquisition costs. Online net gaming revenue and EBITDA delivered double-digit compound annual growth rates between 2023 and 2025 on a proforma basis. SuperSport demonstrated sustainable EBITDA margins of approximately 52% with cash conversion exceeding 90% during the initial acquisition period. The 10x EBITDA multiple assigned to the combined entity reflects this consistent financial performance trajectory.
Why Is Entain Group Exiting Its Central and Eastern Europe Operations?
Aligned with the priority to maximize shareholder value, Entain Group’s board concluded to pursue a complete exit from Entain CEE to unlock portfolio value. CEO Stella David described the initial divestment as a decisive first step demonstrating robust capital allocation discipline.
Net proceeds from the sale will reduce outstanding debt, generating approximately £20 million in annual interest savings. The transaction remains broadly neutral to earnings per share and adjusted cashflow. Future proceeds will reduce reported leverage below 3x, with excess capital returned to shareholders.
The divestment enables simplification of the group structure. As a minority shareholder following the 20% sale, Entain will continue recognizing its share of Entain CEE profits and dividends until full exit completion. EMMA Capital, positioned as proven CEE specialists, will accelerate operations under continued leadership.
Reflecting the deconsolidation, Entain updated FY26 guidance to expect online EBITDA margin of 21-22%, down from previous guidance of 23-24% which included Entain CEE. The company reiterated expectations of 5-7% FY26 online net gaming revenue growth in constant currency on a like-for-like basis. Management remains on track to generate approximately £500 million of annual adjusted cashflow in 2028.
