Entain to sell 20% stake in CEE business as it begins phased exit

(Sharecast News) - Entain said on Thursday that it has agreed to sell a 20% stake in its Central and Eastern Europe business to joint venture partner EMMA Capital for around �425m (�366m) as it begins a phased exit.

The consideration comprises �395m (�341m) on completion, and an additional payment in early 2027 to reflect FY26 financial performance.

The Ladbrokes owner said it has decided to pursue an exit from the CEE business in line with its priority to maximise shareholder value, as it looks to "unlock the value created within Entain's attractive portfolio".

The company said proceeds from the sale will be used to reduce debt and that it continues to evaluate all strategic options to exit its remaining minority shareholding.

Chief executive Stella David said: "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 robust capital allocation discipline.

"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. Entain remains well positioned to be a long-term industry winner."

Entain updated its guidance for the divestment. The group reiterated expectations of 5-7% FY26 online net gaming revenue growth in constant currency on a like-for-like basis.

The FY26 online EBITDA margin is now expected to be between 21% and 22%, down from guidance of 23% to 24% previously.

Entain said it remains comfortable with market expectations for FY26 group underlying EBITDA of �1.1bn and is still on track to generate around �500m of annual adjusted cashflow in 2028.

The shares shot higher on the news and by 1400 BST, they were up 5.1% at 582.60p.

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