MGM Resorts International, a leading global hospitality and entertainment company, recently announced that it expects a negative impact on its third quarter earnings due to a cybersecurity issue that occurred in September. The company, which operates more than 30 hotels and gaming venues worldwide, including Macau and Las Vegas, was targeted by a group of hackers called Scattered Spider.
The cyber security incident is estimated to have an approximately $100 million negative impact on the adjusted core earnings of the Las Vegas Strip resort property and regional operations. That announcement sent MGM shares down nearly 1% in after-market trading. In addition to this, the company also reported a one-time charge of less than $10 million in the quarter ended September 30 due to the incident.
Despite these setbacks, MGM does not anticipate a significant impact on its financial performance for the full year. The company said its hotels and casinos have returned to normal operations, although some services, such as digital keys and mobile check-ins, are still unavailable.
Looking ahead, MGM expects an occupancy rate of 93% in October, slightly lower than the 94% rate for the same period last year. However, the company expects a full recovery in November for Las Vegas Strip Resorts. This bullish view is based on the assumption that the company is well positioned to have a strong fourth quarter, with record results expected in November, driven mainly by the Formula 1 event.
The cyber security incident has certainly been a major challenge for MGM Resorts International. However, the company’s quick response and optimistic outlook for the future suggest that it is well-equipped to overcome this setback and continue to provide high-quality hospitality and entertainment services to its customers worldwide. The incident also serves as a reminder of the importance of robust cybersecurity measures in today’s digital age, where cyber threats pose a significant risk to businesses across all industries.
the mail MGM Resorts hit by cyber attack: $100 million impact expected appeared first NewsGPT.ai.
English 
Español de Venezuela 