Tabcorp Announces Chairman Akhurst’s Departure Amid Financial Struggles

Tabcorp Holdings has made it known that Bruce Akhurst, its chairman, will leave his position after the company’s Annual General Meeting in October 2024. Akhurst has been the chairman since Tabcorp split from The Lottery Corporation in 2021. 

Tabcorp Reports Huge Net Loss and 57% Drop in Stock Price

Akhurst’s exit comes after a tough time for the Australian betting giant, which has seen big losses and a steep drop in stock price. Tabcorp reported a huge AUD1.36 billion ($926.3 million) net loss for the year ending June 30, 2024, due to an AUD1.38 billion ($939.6 million) write-down of assets in South Australia and New South Wales. The company’s stock price has fallen by 57% in the last year, with a lot of this happening in the past six months. Higher running costs, along with a cost-of-living squeeze and stricter rules, have made the company’s money troubles even worse.

Akhurst took pride in the company’s achievements during his time as leader. He highlighted the successful split of the business and the steps taken to update its operations. These included rolling out the new TAB app and getting a 20-year license for wagering and betting in Victoria. He stressed that these moves have set up Tabcorp to grow in the future even with the challenges it faces now.

Investor Dissatisfaction Leads to Leadership Shake-Up at Tabcorp

However, investors grew unhappy, particularly with the company’s first aim to grab 30% of the digital betting market and to cut running costs to AUD600 million ($408.6 million). This caused a change at the top, with Akhurst leaving and Gillon McLachlan, who used to run the Australian Football League, taking over as CEO in August 2024. McLachlan has said that earlier growth goals were too high and has not yet laid out a new plan for the company’s future.

Brett Chenoweth, who became a Tabcorp board member in 2022, will step into the role of chair. He brings a wealth of leadership know-how from his time as CEO of APN News and Media and from serving on the boards of other big-name companies, including EVT Limited and One New Zealand Group. 

Chenoweth spoke of Akhurst’s guidance during the company’s shift and seemed upbeat about what lies ahead for the company pointing out that key changes at the foundation had been put in place to set Tabcorp up for success down the road.

Along with Akhurst, Justin Milne, a long-time director, will also step down, which leads to a big shake-up in the company’s top team. Milne, who became a board member in 2011, had a key part in steering Tabcorp through several changes, like the split-up and recent tech upgrades. The hunt for someone to take his place is already in motion.