Australian gambling services company Tabcorp Holdings appointed former Australian Football League (AFL) chief Gillon McLachlan as Chief Executive Officer and Managing Director on Monday.
This appointment comes several months after former CEO Adam Rytenskild resigned due to his use of "offensive" and "inappropriate" language in the workplace. The company is currently facing intense competitive pressure and is undergoing strategic transformation.
Jefferies analysts wrote in a report: "Since March 24, TAH has been without a CEO. Considering the various initiatives underway within the company, the appointment of Gillon McLachlan should be seen as a positive signal."
As of 0457 GMT, the bookmaker's shares rose by 1.5% to AUD 0.67, after previously dropping by 3.8%, marking the biggest one-day fall in nearly three weeks.
As of Friday's close, the company's shares have fallen almost 22% this year due to a non-cash impairment charge related to its gambling and media business in the first half.
During McLachlan's ten-year tenure as AFL CEO, he drove significant revenue growth and oversaw its expansion efforts.
The company stated that he would join Tabcorp as CEO and Managing Director on August 5, subject to regulatory approval. He will receive a fixed annual remuneration of AUD 1.5 million (USD 991,800).
Tabcorp Executive Chairman Bruce Akhurst stated in a release: "Over the past two years since the demerger, we have significantly improved customer service and implemented key structural reforms in Queensland and Victoria. Gillon has overseen some of the most significant media rights deals in Australia's sports history, and we are excited about the potential growth opportunities for our gambling and media business under his leadership."
