Tabcorp is transforming its entire wagering ecosystem as it targets a 30 percent digital revenue market share.
The company unveiled the plans in its half-year results last week, with managing director and CEO Adam Rytenskild stating the company is “very clear on what winning looks like – It’s TAB25.”
It will be delivered across “a journey of six halves of which H1 23 is the first” with plans to release more details to the market on TAB25 this coming May at its investor day.
“We’re targeting 30 percent digital revenue market share, and we think this is a very achievable goal,” Rytenskild said.
“I’m personally driving the company to beat this target.”
Tabcorp is also targeting a reduction in operating costs to between $600 million and $620 million in FY25 under an acceleration of its Genesis transformation program, a cost-out exercise.
Since demerging from The Lottery Corporation Rytenskild said Tabcorp is now positioned to create a new operating model.
“We’re creating a simpler and leaner organisation that allows us to deliver faster outcomes for customers, and be more effective in the way we work,” he said.
Rytenskild said the cost-out will allow for financial headroom to invest more in customers, “including product, branding, and potential future investment opportunities. This will in turn help us grow market share.”
He added its new operating model encompasses one of the six pillars of Genesis and “will allow the business to be more efficient”.
“We’re also looking to be more efficient with our technology, including rationalising our systems,” he said.
“Our tech teams can be more agile, and our CIO Alan Sharvin has spent his first year in the job not only streamlining what we have, but identifying new opportunities for our systems to be faster, simpler, and more efficient.”
Rytenskild said Tabcorp is the only “wagerer that can provide an integrated content, retail and digital experience, holding digital revenue and market share for the first time since 2019.”
Over the next 12 months, digital efforts will see Tabcorp launch new products, and the app will be regularly upgraded.
Rytenskild said its new TAB App, launched in the half, helped the company retain digital market share and has provided a strong launch pad to reach its 30 percent target.
Tabcorp also appointed a new chief analytics and data officer with Amy Shi-Nash stepping into the role this past January.
Shi-Nash joined from NAB where she was the chief data scientist and will “leverage customer insights and create a more personalized customer experience and be more effective with our promotional spend”.
To complement its new strategy, Tabcorp said its 20 percent share in social betting app Dabble for $33 million provides an avenue “to see seed innovation [and] to learn”, and provide “greater exposure to a younger demographic.”