In what is seen as a strategic maneuver to navigate a challenging period, Tabcorp Holdings Limited has announced the induction of Mark Howell as the new Chief Financial Officer (CFO) slated to transition into the role by June 2024 at the latest. Mark Howell will be stepping into the shoes of predecessor Daniel Renshaw, who parted ways with the company in August last year. Since September, Damien Johnston has been carrying out the duties of interim CFO.
The search for a CFO consummated with Howell’s selection, who brings with him a substantial background in finance and strategy from his tenure at Coles Group, where he holds the position of general manager for liquor finance and network optimisation. His role sees him not just ushering in strategic initiatives but also engaging with investor relations—a skill Tabcorp is keen to capitalize on. His previous responsibilities include working as the general manager of group strategy and business development for Coles’ retail liquor network.
Howell’s dossier extends to prestigious stints in senior investment banking roles across continents, from Australia to the financial hubs of New York, where he represented both Rothschild and Goldman Sachs. Moreover, having cut his teeth in the financial world with notable experience at Ernst and Young, Howell simultaneously lends his expertise as a director to Queensland Venue Co since May 2019.
Tabcorp’s management exhibits optimism with Howell’s recruitment, particularly Adam Rytenskild, managing director and CEO of Tabcorp, who expressed unreserved commendation. Rytenskild heralded Howell as a perfect amalgamation of passion and innovative financial stewardship that Tabcorp requires, notably during a time they are embarking on significant transformational endeavors. He underscored Howell’s adeptness in customer-centric industries and foresaw his prolific experience with leading finance teams and interfacing with investors as a means to empower Tabcorp’s path forward.
This appointment surfaces against the backdrop of Tabcorp’s financial performance report that evidenced a 6.1% year-on-year revenue decline in the first quarter, even as digital wagering turnover experienced an uptick. Breaking it down, wagering and media encountered a 5.4% decrease, with digital wagering revenue also retracting by 3.9%, though the 1.0% increase in digital wagering turnover suggests resilience in a softer market. The gaming services segment didn’t fare as well, seeing a 12.9% drop due to factors like the cessation of eBet revenue post the unit’s sale in February.
On the gaming services front, Tabcorp indicated that finalization is imminent regarding the intended divestiture of its Max Performance Solutions business. Despite the financial downswing, Tabcorp harvested a silver lining in an $83.0 million tax dispute settlement with the Australian Taxation Office (ATO), thankful to a reimbursement pertaining to the tax treatment of payments for various licenses and authorities, spelling out a net positive impact of approximately $45.0 million after tax.
The first quarter, however, wasn’t devoid of turbulence as Tabcorp navigated through regulatory hurdles, incurring fines in Victoria for a record AU$1.0m due to flaws in their conduct when their Wagering and Betting System stumbled during the significant 2020 Spring Racing Carnival. The Victorian Gambling and Casino Control Commission reproached the company for inadequate transparency and its posture during the investigatory phase. Furthermore, in New South Wales, Tabcorp faced an additional $15,000 fine over contraventions pertaining to advertising and promotion norms, spotlighted by an offending inducement-to-gamble advertisement on its website.
As Howell prepares to ascend into the financial helm of Tabcorp, the challenges ahead are multifaceted—ranging from revitalizing financial growth amidst market pressures to ensuring adherence to stringent regulatory frameworks. His rich financial acumen will be a valued asset for a company looking to galvanize its position in Australia’s spirited wagering industry.
