MGM Resorts Expects Negative Impact on Q3 Results Due to Cybersecurity Issue

MGM Resorts International has announced that it anticipates a negative impact on its third-quarter results due to operational disruptions caused by a cybersecurity issue in September. The company, which operates a global network of over 30 hotels and gaming venues, including popular destinations in Macau and Las Vegas, fell victim to a hacking group known as Scattered Spider.

According to a regulatory filing, MGM estimates that the cybersecurity incident will result in a negative impact of approximately $100 million on its adjusted property core profit for the Las Vegas Strip Resorts and Regional Operations. The news caused the company’s shares to decline by close to 1% in after-hours trading.

In addition to the financial impact, MGM incurred a one-time expense of less than $10 million during the quarter due to the incident. However, the company does not expect a significant impact on its overall financial performance for the full year.

While the company has stated that its hotels and casinos have returned to normal operations, certain services such as digital keys and mobile check-ins were temporarily unavailable. MGM projects a slight decrease in occupancy for October, with a rate of 93% compared to 94% in the previous year. However, the company anticipates a full rebound in November for the Las Vegas Strip Resorts.

MGM remains optimistic about its future performance, particularly in the fourth quarter. The company expects record results in November, primarily driven by the Formula 1 event. Despite the cybersecurity incident, MGM believes it is well-positioned to achieve strong financial performance in the coming months.

As MGM Resorts International continues to address the aftermath of the cybersecurity issue, the company remains committed to providing a safe and secure environment for its guests and maintaining its position as a leading player in the global hospitality and gaming industry.