Tabcorp reportedly cuts 10% of workforce
The Australian Financial Review says nearly 200 employees have been dismissed since October.
Australia.- Tabcorp has reportedly laid off 200 people – 10 per cent of its staff – since the Annual General Meeting in October. The Australian Financial Review has cited a company spokesperson as saying that cuts have been implemented across almost all sectors, including Tabcorp’s media division. Sky Racing, Tabcorp’s horse racing broadcasting service, has reportedly not yet been impacted.
The layoffs come amid regulatory challenges and leadership transitions. Former chairman Bruce Akhurst stepped down in October and was succeeded by Brett Chenoweth, a former CEO of APN News and Media. Earlier this year, Adam Rytenskild stepped down as CEO and managing director after allegations of inappropriate and offensive language.
Meanwhile, the company has faced regulatory penalties. The Australian Communications and Media Authority (ACMA) has fined Tabcorp AU$262,920 (US$171,731) for accepting 854 in-play bets across 69 tennis matches from April to October 2023. And in August, Tabcorp was fined AU$4.6m (US$3.08m) for sending marketing material to a customer who had requested not to receive it and for failing to train employees to minimise gambling harm.
See also: VGCCC orders Tabcorp to make most betting terminals cashless
For the financial year 2024, Tabocorp posted a statutory net loss after tax of AU$1.4bn (US$951.1m), including non-cash impairment charges totalling $1,37bn (US$966m). The impairment charges were due to the delayed recovery in the Australian wagering market in the latter part of the financial year as increased inflation and interest rates resulted in reduced betting.
Revenue was down 3.9 per cent year-on-year to AU$2.34bn (US$1.59bn) while EBITDA was down 18.7 per cent to AU$317.7m (US$216m) and net profit after tax was down 66.8 per cent to AU$28m (US$19.0m). Wagering and media revenues were AU$2.16bn (US$1.47bn), down 3 per cent. Digital wagering revenue was down 2.2 per cent and media revenue declined 6.2 per cent.
