The bottom line of the ASX-listed wagering behemoth was hit by increased operating costs on top of the South Australian and NSW assets write-down, its second over the 12 months to June 30. Tabcorp had already booked a $732 million impairment in February, but said the business kept suffering from poor trading due to the cost-of-living crisis and increased regulation, coupled with higher costs.

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New boss Gillon McLachlan – who took the mantle in August– used the recent financial result to overhaul the group’s strategy and deemed its existing targets as unrealistic. The group had been targeting a 30 per cent share of the digital wagering market and aimed to reduce its operating costs to $600 million.

He has not yet unveiled new targets nor committed to a different strategy but said at the time it was clear the underlying assumptions of the business were incorrect.

McLachlan replaced former chief Adam Rytenskild, who left suddenly in March after an external law firm found he’d spoken inappropriately about a Victorian regulator. Rytenskild denies the allegations and is now suing Tabcorp for unfair dismissal.

Akhurst had to become executive chair of Tabcorp between Rytenskild’s departure and McLachlan’s start last month.

Tabcorp director Justin Milne will also step down after 13 years on the board.

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