Tabcorp Announces Senior Appointment To Strengthen Leadership Team

Tabcorp Holdings, the Australian gambling and entertainment company, has recently announced the appointment of Mark Howell as its new Chief Financial Officer (CFO). The move comes as Tabcorp seeks to strengthen its leadership team and drive its ongoing transformation. Howell’s appointment is subject to regulatory approvals and is expected to take place before June 2024. He will be replacing Daniel Renshaw, who left Tabcorp in August.

Mark Howell brings a wealth of experience to his new role as CFO of Tabcorp. Currently serving as the General Manager for Liquor Finance and Network Optimization at Coles Group, Howell has held various senior positions in both finance and strategy. Before joining Coles Group, he worked as the General Manager of Group Strategy, Business Development, and Investor Relations at the retail liquor network.

Prior to his time at Coles Group, Howell held senior investment banking roles at Rothschild and Goldman Sachs in both Australia and New York. He also has experience working at Ernst and Young and has been a director at Queensland Venue Co since May 2019. With his diverse background and extensive knowledge of finance and strategy, Howell is well-equipped to contribute to Tabcorp’s ongoing growth and transformation.

Tabcorp’s Managing Director and CEO, Adam Rytenskild, welcomed Howell’s appointment, expressing his confidence in Howell’s ability to contribute to the company’s transformation. Rytenskild believes that Howell’s experience leading finance teams at Coles and his close collaboration with investors will be invaluable moving forward. He sees Howell as the perfect fit for Tabcorp as they navigate the competitive wagering industry in Australia.

“Mark is the perfect fit for Tabcorp as we deliver our transformation,” Rytenskild said. “He’s passionate about our growth story and dynamic in his thinking. Wagering is one of the most competitive industries in Australia, and Mark comes from an equally competitive customer-focused industry.”

The appointment of Mark Howell as CFO comes at a crucial time for Tabcorp, as the company reported a decline in revenue in the first quarter (Q1). Despite an increase in digital wagering turnover, Tabcorp saw a 6.1% year-on-year decline in revenue. Wagering and media revenue fell 5.4%, mainly due to lower fixed odds yields resulting from racing and sports outcomes. Digital wagering revenue also slipped 3.9%, although digital wagering turnover defied softer market conditions and increased by 1.0%.

Gaming services revenue experienced a significant decline of 12.9% compared to the previous year. This decline can be attributed primarily to the removal of eBet revenue following the sale of the business in February. However, despite these challenges, Tabcorp remains committed to its ongoing transformation and growth.

In addition to the decline in revenue, Tabcorp faced regulatory penalties in both Victoria and New South Wales (NSW) during Q1. In Victoria, the business was fined a record AU$1.0 million for its conduct when its Wagering and Betting System (WBS) experienced an outage during the 2020 Spring Racing Carnival. The Victorian Gambling and Casino Control Commission (VGCCC) criticized Tabcorp for its failure to provide adequate information about the outage voluntarily. The company was also reprimanded for its repeated failure to comply with directions.

Tabcorp also faced a $15,000 fine in NSW for breaching advertising and promotion rules. The company advertised a promotion on its website that included an inducement to gamble, which could be accessed by anyone visiting the website, regardless of whether they had an account with Tabcorp or not.

Amidst the challenges faced by Tabcorp, there was some positive news during Q1. The company resolved a tax dispute with the Australian Taxation Office (ATO) and received a refund of $83.0 million. This refund was the result of the resolution of the income tax treatment of payments for various licenses and authorities. Tabcorp paid the disputed amount of tax liabilities and interest in full and received a refund representing 20% of the disputed tax liabilities and interest.

As a result of the ATO settlement, Tabcorp will pay approximately $37.0 million to The Lottery Corporation Limited (TLC) under the businesses’ separation deed. This settlement will provide Tabcorp with a benefit of approximately $45.0 million after tax.