Tabcorp shares moving on Australian Stock Exchange

The TAB might be on the nose with punters but share market investors also had their say on Tabcorp’s weekend performance in Monday’s early trading on the Australian Stock Exchange.

TAB has endured a tough weekend with a major technical issue causing their website and mobile app to crash.

Now the share market has had its say with Tabcorp shares dropping from Friday’s close of $4.10 to $3.94 shortly after trading opened on Monday.

However, Tabcorp’s share price rallied to $4.04 soon afterwards suggesting little damage had been done to the organisation’s reputation by the weekend events.

Tabcorp chief executive David Attenborough issued a statement to the Australian Stock Exchange apologising for the problem, which he said had been all but fixed.

“The outage was unacceptable,” Mr Attenborough said.

“Tabcorp remains deeply sorry for this and acknowledges the significant disruption caused to our customers, the racing industry and venue partners.

Punters that headed into a TAB agency were unable to place bets on Saturday or Sunday.Source:News Limited

“Our teams and technology partners are continuing to deploy all available resources into restoring the full Tabcorp gambling entertainment experience for our customers and partners.”

Tabcorp’s share price had jumped sharply in the previous week from $3.31 on Melbourne Cup day to the $4.10 high after reports emerged in The Australian that private equity firms were interested in buying into the organisation.

The Australian reported former Sportsbet and BetEasy boss Matt Tripp had been sounded out to run TAB’s wagering business if a takeover went ahead.

However, Tabcorp issued a statement to the ASX last week denying any takeover bid had been tabled.

Monday’s full statement to the ASX read:

Tabcorp Holdings Limited (Tabcorp) provides an update on the major outage which impacted its TAB, Keno and Gaming Services operations and systems from around 11:30am AEDT on Saturday 7 November 2020.

Services have now largely been restored with an immediate focus on ensuring the systems return to optimal service levels in coming days. Tabcorp has commenced a comprehensive and urgent review into this incident, which will be overseen by the Board.

Based on a preliminary assessment, a smoke and likely fire incident at a third-party managed data centre in Sydney resulted in extensive damage to Tabcorp’s servers and associated infrastructure.

This led to technical and systems outages, as well as the closure of TAB retail venues. At this stage, there is no evidence of any potential cyber security issues or customer data breaches.

Lost wagering turnover over the weekend is estimated to have impacted Tabcorp EBITDA by less than $10 million.

“The outage was unacceptable. Tabcorp remains deeply sorry for this and acknowledges the significant disruption caused to our customers, the racing industry and venue partners,” said Tabcorp Managing Director and CEO, David Attenborough.

“Our teams and technology partners are continuing to deploy all available resources into restoring the full Tabcorp gambling entertainment experience for our customers and partners.”

Originally published asTAB statement to ASX

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