Australian betting giant Tabcorp held its annual general meeting in Melbourne October 25, and two topics of note to come from it revolved around advertising reform in the country and the level of compensation for the company’s executives.
With regard to advertising, Tabcorp has continued to come out in support of further regulation, a stance that is not exactly in line with its competitors and fellow operators.
According to SBC News, Chairman Bruce Akhurst said at the recent meeting, “We believe there is too much gambling advertising. Families should not be inundated with gambling advertising while they are watching television. We remain committed to not advertising on free to air television between 6 a.m. and 8.30 p.m. next year, if the government does not implement changes sooner.”
Currently, federal lawmakers are considering a proposal that would see gaming advertising curtailed over a phased, three-year period, eventually culminating in an all-out ban. The state governments of New South Wales and Victoria have also mentioned potential advertising restrictions as part of ongoing regulatory overhauls.
Tabcorp CEO Adam Rytenskild piggybacked on Akhurst’s comments and added that “the community rightly expect more from their wagering operators,” per SBC.
Notably, Tabcorp’s shareholders also made their presence known at the meeting, with an eye-opening 35 percent voting against the company’s latest remuneration report. The report revealed compensation totals of AUD$2.07 million and AUD$493,000 for Rytenskild and Akhurst, respectively, which was viewed as excessive for a company whose performance has lagged of late.
Anytime 25 percent or more of a company’s shareholders vote against a motion brought forth at a general meeting, it is considered a strike vote, and if shareholders vote the same way in 2024, the board of directors will have to consider a spill motion, according to the Sydney Morning Herald.
Prior to the vote, proxy advisors urged shareholders to vote against the remuneration framework, mainly under the argument that it was representative of a top-100 or top-50 company under the Australian Securities Exchange (ASX), instead of its actual position of 145th.
Despite the fact that its revenue from July 2022 to June 2023 grew two percent with EBITDA rising eight percent, Tabcorp’s most recent performance has lagged. In ASX filings from this month, the company reported that its first-quarter earnings for 2024 dropped more than six percent—in response, its share price has tumbled more than 15 percent.
In his comments at the meeting, Akhurst acknowledged that this is a crucial time for the multibillion-dollar stalwart.
“This is a very disruptive period for our company,” he said, according to SBC. “The board is very conscious of the need to deliver long term financial outcomes for shareholders and to retain, motivate and reward management to do the work to achieve this.”
