Tabcorp Managing Director and CEO Adam Rytenskild has been forced to resign following allegations of offensive language use within the company workplace.
The company's Board has appointed Maritana Partners to begin searching for a new MD and CEO.
Despite agreeing to step down following the Board's investigation into the allegations, which found his language inappropriate for his role, Rytenskild said he did not remember making the comments discussed. “I don't recall making the alleged comment and it's not language I would usually use, but I have regrettably agreed to resign," he said.
Rytenskild called his experience with Tabcorp “an enormous part of my life for many years” and that he “believe[d] in the journey the company is on.”
As part of his resignation, Rytenskild will only receive termination payments required by law and contract. This means any short-term and long-term incentive rewards have been forfeited.
Despite hiring new CFO Mark Howell in November, Tabcorp reported a H1 net loss for the period ending 31 December 2023. Group revenue totaled AU$1.2bn (US$0.79bn), down 5% year-on-year, while adjusted EBITDA fell even more significantly, down 14% to a total of AU$170m. The group's net loss after tax totaled AU$636.8m.
On these results, Rytenskild said: “Today’s results are solid given market conditions, but more importantly demonstrate that the Company is on track to significantly improve performance over time.”
The company received a Victorian Wagering and Betting Licence in December, which will go live in August for a period of 20 years. The exclusive agreement will see the company pay wagering taxes and product fees in line with other wagering operators, with Tabcorp stating that, was the new licence applied in FY23, its group EBITDA would have been up by AU$140m.
