Tabcorp CEO confident on 30% digital market share despite strong competition
Adam Rytenskild notes bullish spend from rivals will lose out to a “disciplined” approach in the long run
Tabcorp CEO Adam Rytenskild has reaffirmed his target of achieving a 30% digital market share in Australia by 2025 despite strong competition from Entain and Flutter Entertainment.
Speaking on an analyst call following Tabcorp’s full-year 2023 results, Rytenskild laid down the gauntlet to the firm’s rivals and suggested a disciplined approach would ultimately win out.
The CEO’s comments come after Tabcorp reported a slight dip in digital revenue market share from 24.9% to 24.5%.
However, total market revenue share increased from 33.6% to 34.6%, coupled with a rise in digital turnover market share from 19.7% to 20%.
Digital turnover and revenue market share for horseracing jumped by 0.5 percentage points and 0.1 percentage points, respectively.
Digital turnover market share for the Australian Football League rose from 9.6% to 10% while digital revenue market share for the vertical slipped from 12.1% to 10.8%.
The CEO remained confident in his 2025 target, pointing to a 3% rise in active customers.
Rytenskild said: “When you launch a transformation strategy as Tabcorp, the market responds. We saw that during the year. I’m really comfortable with our market share metric. We grew total share.
“We saw Betr launch probably before they wanted to with a pretty disruptive strategy. We saw our biggest competitor [Sportsbet] massively increase their marketing spend in the second half of the year. We’ve seen Entain try to disrupt the market.
“We’ve stuck to our guns and focused on delivering, and we’re really happy that we’ve been disciplined,” he added.
Rytenskild went on to note that the market’s overall health had dipped slightly but he was confident an uptick heading into full-year 2024 would come to fruition.
He continued: “The market remains certainly competitive but you can see from Sportsbet’s and Entain’s results that the market is a bit soft.
“It’s competitive and it’s expected to increase in competitiveness going into the football finals and into Spring Racing. We’re focused on delivering our plan.”