Tabcorp appoints Brett Chenoweth as chair after Bruce Akhurst bows out

Tabcorp chair Bruce Akhurst will step down from the ASX-listed wagering business after concerns from unhappy investors frustrated with the company’s direction.

He will be replaced by fellow director Brett Chenoweth at the end of this year. Chenoweth already chairs Adairs, Canberra Data Centres and RetireAustralia and sits on the board of Vodafone NZ.

Tabcorp chairman Bruce Akhurst at Derby Day in 2022.Credit: Tash Sorensen

Akhurst’s resignation ends a seven-year director tenure on the board of the wagering business which demerged from its former lotteries cash-cow in 2021. He has chaired the business since the demerger.

Tabcorp confirmed his decision on the ASX late on Thursday, days after a report in The Australian Financial Review’s Street Talk section which said investors were holding Akhurst responsible for the group’s disappointing financial performance.

Tabcorp’s shares have fallen by more than 45 per cent over the past six months and closed on Thursday at 43¢. It originally floated with a price of $2.70 per share.

Akhurst said he was proud of Tabcorp’s performance and said the group had adapted quickly since it listed as its own entity.

“I’m proud of our achievements since the demerger. We’re a faster, more innovative and more responsive organisation today than we have ever been.

“The wagering market has been challenging over the last year, and I’m looking forward to watching Tabcorp grow in the next phase,” Akhurst said.

Tabcorp posted a $1.36 billion loss for the 12-months to June 30 which blindsided investors due in part to a $1.38 billion write down of the group’s South Australian and NSW assets.

The bottom line of the ASX-listed wagering behemoth was hit by increased operating costs on top of the South Australian and NSW assets write-down, its second over the 12 months to June 30. Tabcorp had already booked a $732 million impairment in February, but said the business kept suffering from poor trading due to the cost-of-living crisis and increased regulation, coupled with higher costs.

New boss Gillon McLachlan – who took the mantle in August– used the recent financial result to overhaul the group’s strategy and deemed its existing targets as unrealistic. The group had been targeting a 30 per cent share of the digital wagering market and aimed to reduce its operating costs to $600 million.

He has not yet unveiled new targets nor committed to a different strategy but said at the time it was clear the underlying assumptions of the business were incorrect.

McLachlan replaced former chief Adam Rytenskild, who left suddenly in March after an external law firm found he’d spoken inappropriately about a Victorian regulator. Rytenskild denies the allegations and is now suing Tabcorp for unfair dismissal.

Akhurst had to become executive chair of Tabcorp between Rytenskild’s departure and McLachlan’s start last month.

Tabcorp director Justin Milne will also step down after 13 years on the board.

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