Tabcorp has confirmed the appointment of Adam Rytenskild as its new Managing Director and Chief Executive Officer as the group enters the next phase of its history.
Charged with leading the group post-demerger with The Lottery Corporation, Rytenskild will begin his role on June 1 after receiving all necessary regulatory and ministerial approvals.
Under the provisions of the deal, Rytenskild will be eligible to participate annually in the Tabcorp Short Term Incentive (STI) Plan, with an on-target opportunity of 100% of fixed remuneration with the potential to earn up to 150% of fixed remuneration for positive performances against set KPIs.
The incoming leader will be tasked with gaining stability and driving growth of the demerged company, now intently focused on gaming and sports betting.
Following the demerger with its lottery and keno division, Tabcorp’s share price plummeted to around A$1 per share, down 80.4% from pre-demerger. Reflecting the division of the company, the share price at market closure on May 31 was A$0.93, giving Rytenskild a big task to regain shareholder trust.
Meanwhile, The Lottery Corporation was instantly valued at A$10bn when it launched on the ASX last week. At the official market closure on May 30, the demerged lottery firm’s share price was A$4.78 per share.
Rytenskild takes over a corporation in a vulnerable position, with its latest financial accounts detailing that EBITDA was cut by 5.5% year-on-year. This was inclusive of the lottery business, which contributed A$1.78bn of the total revenue of A$2.93 during H1 of 2022.
However, the corporate directors of Tabcorp noted that the demerger would provide longer-term shareholder value due to creating two focused executive leadership teams both listed on the ASX.