Possible Executive Shakeup at Australia's Largest Slots Operator, Endeavor Group
Bruce Mathieson Sr., a prominent investor in Australia's largest hotel and slot machine operator, Endeavor Group, is displeased with the current management team. As the company's biggest individual shareholder, he can potentially force changes to the executive ranks.
Mathieson, who owns a notable portion of the gaming industry, seeks a major overhaul of the board. He is particularly critical of Chairman Peter Hearl and CEO Steve Donohue, both facing sharp criticism from the billionaire.
He labels their actions "shameful" and believes they've caused billions in losses for the company. To revive its fortunes, he's pushing for new blood in leadership.
Despite reporting a 2.5% increase in group sales to AU$11.9 billion (US$7.58 billion) and a 10.7% rise in EBITDA to AU$1 billion (US$637 million), Endeavor has seen its market value plummet by more than AU$4 billion (US$2.54 billion) since separating from Woolworths. Over the past year, its stock value dropped by 20%.
Mathieson condemns the executives' performance under Hearl and Donohue, stating their decisions are seen as unacceptable by most people in the country. He views many of their moves as catastrophic.
Endeavor, known as EDV on the Australian Securities Exchange, hit a high of AU$7.10 (US$4.52) in share price in February this year. As of Thursday morning, it was trading at AU$5.27 (US$3.36).
Need for Fresh Ideas
Mathieson insists he has a solution to the company's woes. Bill Wavish, a retail industry veteran and a former Woolworths CFO, has enlisted Mathieson's assistance in his bid for an independent directorship at Endeavor Group.
Known to the top brass at Endeavor, Wavish's chances of joining the board are unclear.
Endeavor intends to reveal details soon about its annual general meeting, including the renewal of nominations for Bruce Mathieson Jr. and Rod van Onselen as directors by the board. The company also plans to choose two non-executive directors.
Wavish bemoans the lack of expertise in retail and pub management at Endeavor and expresses dissatisfaction with the company's decision to scrap its brand strategy and the soaring costs, which included a steep 11% hike in expenditures last year.
If he receives the required approvals, Mathieson will likely achieve his goal with his son and van Onselen already on the board, potentially swaying the voting in his favor. #header {color: #008080;background-color: #FFF;border: 2px solid #666;padding: 5px;margin-bottom: 5px;}#ul {list-style-type: disc;margin-top: 0px;margin-bottom: 5px;}#a {color: #036;}#a:visited {color: #543507;}#a:hover {color: #990000;}#body {font-size: 14px;}#code {font-family: "Consolas","Courier New",monospace;font-size: 14px;color: #008B8B;font-style: monospace;font-weight: bold;padding: 3px 5px;background-color: #FFF;}#h1 {color: #000;background-color: #FFF;padding-top: 5px;}#h2 {color: #666;background-color: #FFF;padding-top: 5px;}#h3 {color: #000;background-color: #E6E6E6;padding-top: 5px;}#h4 {color: #666;background-color: #E6E6E6;padding-top: 5px;}#pre {border: 2px solid #999;padding: 5px;background-color: #FFF;}#.enclosure {background-color: #E6E6E6;margin: 5px;padding: 5px;border: 2px solid #999;}#.image-border {border: 2px solid #CCC;}#.banner {text-align: center;font-size: x-large;margin: -20px 0px;}#.banner p {margin: 12px;}#.cpright {text-align: right;font-size: small;background-color: #E6E6E6;font-style: italic;}#.header {padding: 15px 5px;background-color: #FFF;border-bottom: 1px solid #EEE;}#.content {padding: 15px 5px;background-color: #F5F4F4;}#.content h3 {border-top: 1px solid #EEE;padding-top: 5px;margin: 5px 0px;}#.content span {font-weight: bold;color: #008080;}#.content code {background-color: #FFF;font-size: small;}#.footer {background-color: #FFF;padding: 20px;}#.footer h4 {margin-top: 0px;font-size: x-large;}#.footer p {margin-top: 5px;margin-bottom: 0px;font-size: small;}#.footer a {color: #008080;}#.footer a:visited {color: #543507;}#.footer a:hover {color: #990000;}#.footer pre {font-size: small;}#.footer ul {list-style-type: disc;}#.newsletter-form {border: 1px solid #CCC;padding: 10px;background-color: #FFF;}#.newsletter-form input {font-size: small;margin-right: 10px;}#.newsletter-form button {padding: 5px 10px;font-size: small;}#.newsletter-form span {color: #CCC;}#.highlight {color: #990000;}#.highlight span,#.highlight a {color: #000;}#.highlight a:visited {color: #543507;}#.highlight a:hover {color: #990000;
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Source: www.casino.org
