Focus on Tabcorp’s performance after CEO’s abrupt exit

Critics say Tabcorp shareholders should be focused on the wagering company’s performance.

Inappropriate and offensive language by former Tabcorp boss Adam Rytenskild aside, critics say what shareholders should really be focused on is the performance of the wagering company since it rejected a $3.5bn-plus offer from Entain in 2021.

Tabcorp rebuffed bids from Entain and private equity around that level, then demerged its lotteries business, leaving the wagering arm as a stand-alone company in 2022.

At that time, its market value was $2.4bn – now it’s worth $1.74bn.

Among the executives that now could be in line for the top role are Racing Queensland boss Jason Scott, Entain executive Andrew Vouris or Melbourne Racing head Josh Blanksby.

Yet some industry sources believe it’s almost inevitable that London-listed wagering company Entain (which owns Ladbrokes) comes back for a second attempt to buy the business, with a view across the racing industry it can run it more efficiently.

But that would require a law change from the three east coast states that prohibits any group from owning more than 10 per cent.

Still, if the revenue that Racing NSW, Victoria and Queensland receives from Tabcorp continues to fall, as it had done in NSW by about 50 per cent in the past year, it could be the motivation that the state governments need to change the rules to get a better operator.

Mr Rytenskild became the chief executive in 2022 but has worked at Tabcorp since 2000, with his last executive role head of wagering and media.

Sources close to the company have talked of a poor culture at the business for some time.

Dozens of executives are said to have departed since 2022, including chief financial officer Dan Renshaw last year, creating a large turnover in staff.

Tabcorp reported a 5 per cent fall in revenue for the six months to December and a $637m loss, including impairments.