Tabcorp is rejuggling team as demerger takes place

Tabcorp, one of Australia’s biggest gambling companies, agreed to demerge from its lottery business and pursue individual gambling segments as separate entities. The move was hailed by shareholders, investors and industry onlookers, but the company now needs to apply several changes to its c-level team in order to complete the process.

The demerger is officially completing today. The Lottery Corporation, which is the name of the new entity reuniting the lotteries and keno businesses, shares should begin trade on the Australian Stock Exchange on June 2.

With the lottery business breaking away from the wagering division, David Attenborough retired as Managing Director and Chief Executive Officer on May 31. He is succeeded by Adam Rytenskild who is officially stepping into the position today. Attenborough’s original stepping down was postponed because Tabcorp became interested in demerging and saw its former Chief Executive Officer as a person capable of steering it through this process.

Tabcorp has confirmed that Steven Gregg is also going to step down from his position as a non-exec director. Bruce Akhurst is also the new chairman starting today. Adam Newman will no longer be the Chief Financial Officer and he will switch to the same role but as part of the Lottery Corporation. Daniel Renshaw will fill the shoes of his colleagues as part of the Tabcorp team and become the company’s new Chief Financial Officer instead.

Tabcorp’s story is quite fascinating. The company wanted to streamline its finances hammered by the impact of the pandemic. It narrowed down two possible choices – one was selling off its wagering and media division, but the other was demerging and attempting to run each arm separately. News of a potential sale pricked the ears of a number of major gaming giants, including Betmakers, Apollo Global and Entain, all of which showed interest in purchasing it.

However, Tabcorp concluded that none of those businesses were actually prepared to offer a sum that corresponded to the company’s actual value. Tabcorp decided not to sell in the end and doubled down on its plans to demerge instead.

Whether this has paid off remains to be seen. Lotteries have remained strong amid the pandemic. Revenue for the six months ended on December 31, 2021, was up 2.2% year-over-year or $2.11 billion. Further streamlining is expected as Tabcorp is confident in the sustained growth and success of its lottery spinoff.

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