MGM Resorts Expects Third-Quarter Results to be Impacted by 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. The company, which operates numerous hotels and gaming venues globally, including in Macau and Las Vegas, was targeted by 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 adjusted property core profit for its Las Vegas Strip Resorts and Regional Operations. Additionally, the company incurred a one-time expense of less than $10 million in the quarter ended September 30 as a result of the incident. However, MGM does not expect a significant impact on its overall financial performance for the full year.

While the company 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 an occupancy rate of 93% for October, compared to 94% in the previous year. However, it expects a full rebound in November for its Las Vegas Strip Resorts, with record results anticipated primarily driven by the Formula 1 event.

MGM Resorts International remains optimistic about its fourth-quarter performance and is well-positioned for strong results. Despite the cybersecurity incident, the company is confident in its ability to recover and continue providing exceptional experiences for its guests.

Source: Reuters