TEG Reportedly Undergoing Restructuring and Cost-Cutting

The Australian Financial Review (AFR) is reporting that Australian ticketing giant Ticketek Entertainment Group (TEG) is undergoing major restructuring and cost-cutting.

Why now:

• The AFR points out that Ticketek recently lost two big contracts.

• The publication says the first, with Venues NSW, was worth about $100 million and was won by Ticketmaster; the second, with Melbourne Park, was won by AXS.

• The AFR says the contract losses have put “enormous pressure” on private-equity giant Silver Lake, which bought TEG in early 2020 for $US1.3 billion.

• In an email to staff on Monday, CEO Cameron Hoy – who replaced Brad Banducci on June 1 – wrote of the “challenging market conditions” and a “clear objective to refocus on our core strengths.”

• “We need to simplify our operating model to support the long-term success of TEG,” he added.

Rumored cuts:

• Though TEG is yet to substantiate the numbers, the AFR quotes an insider who said the company's cuts would impact 42 people in Australia and two in the Philippines, or 5.5% of the business.

• The source said the job cuts would be finalized this week.

• In his email to staff Hoy wrote that he will soon provide “an update on our FY27 strategy and how we optimise our group-wide platforms and expertise – for the benefit of our business, people and partners.”

• TEG declined the AFR’s request for a comment.