Following its recent $1bn division write-down, Australian based gambling firm Tabcorp has announced a management shake-up, which sees the departure of the company’s chief executive and chairman.
General manager for wagering, Andy Wright, as well as both chief executive David Attenborough and chairman Paula Dwyer are set to leave the organisation, with Tabcorp’s managing director of wagering Adam Rytenskild stating that now is the right time to make changes to the leadership team.
He said: “Community expectations for the way we operate continue to grow. It’s critical that our business provides a strong, sustainable and efficient base to meet these demands.”
The news follows on from last week’s revelation that saw Tabcorp announce it would write down the goodwill value of the betting division by roughly $1bn as a result of both COVID-19 caused impacts on its business as well as competition from online bookmakers such as Sportsbet, Ladbrokes and Beteasy.
Prior to the pandemic, roughly 45% of the group’s wagering turnover came through its network which consists of 400 TAB betting shops and 4000 pubs and clubs with TAB terminals, which in turn were forced to close due to the spread of COVID-19.
Speaking to the Sydney Morning Herald, Citi analyst Bryan Raymond expressed how the $1bn write-down was ‘not a surprise’ when considering the wagering division’s recent performance and outlook.
Moreover, Raymond also explained how he did not expect Tabcorp’s retail business to recover to pre-pandemic levels due to COVID-19 causing an ‘accelerated structural shift’ towards online betting.