Tabcorp dips as leadership notes poor share price performance
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More news: Tabcorp shares lowered on the ASX after the gambling company's executive chair Bruce Akhurst told investors that its directors were "dissatisfied" by the current share price.
Shares fell 2.2% to 45.5 cents by 12:10pm AEDT, having slid more than 45% since January.
Tabcorp acknowledges poor share price and outlines cost reduction plans
The news: Tabcorp's executive chair Bruce Akhurst said that the gambling group's share price is "not where we want it to be", as incoming managing director and CEO Gillon McLachlan outlined plans for further cost reductions at the company's annual general meeting this morning.
The numbers: Tabcorp shares were up 1.08% to 47 cents per share in early trading but has shed around 45% since January.
The context: Akhurst said that shareholders "have every right to be disappointed" by the company's current share price and that its directors are "certainly dissatisfied".
Meanwhile, McLachlan, who was appointed as the company's new managing director and CEO in June, told investors that reducing costs is a "top priority" for him.
Tabcorp's 'Genesis' cost program will continue in FY25, he said, targeting further savings in this financial year. McLachlan noted that the company is also working on a review of its entire operating cost base and capital spend to identify and execute on further opportunities to reduce costs.
What they said: "I acknowledge much work has been done in reducing headcount, management layers and outsourcing transactional work," McLachlan said.
"But I am clear more can and will be done. This time next year I'm confident that we will be a simpler, more cost-effective organisation."
The source: ASX announcement
