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    MGM Resorts remain optimistic about Q4 results despite $100m sting from cyberattack

    Mgm Cyberattack
    Article by : Charles Perrin Oct 8, 2023

    MGM Resorts is reportedly bracing itself for a significant financial loss in Q3 due to the cyberattack it experienced.

    Last month, the operator was forced to shut down its systems after being the victim of a cyber breach by Scattered Spider. This hacker group has assumed responsibility.

    Shares at MGM traded slightly lower earlier this week. Still, it is thought that EBITDAR (earnings before interest, taxes, depreciation, amortisation, and restructuring costs) could be trimmed by as much as $ 100 million from the cyber sting.

    It is also thought that MGM incurred one-time expenses of around $10m in Q3 owed to the cyberattack, which covered technology consulting services and legal fees.

    An MGM statement read: “Although the company currently believes that its cybersecurity insurance will be sufficient to cover the financial impact to its business as a result of the operational disruptions, the one-time expenses described above and future expenses, the full scope of the costs and related impacts of this issue has not been determined.

    “Based on the ongoing investigation, the company believes that the unauthorised third-party activity is contained at this time.”

    Further details have come to light about the cybersecurity issue, in which information was stolen from some players during the attack, including their driver’s license and passport numbers.

    While MGM hasn’t given an official update on their Q3 earnings, it is believed that they could publish their results on November 1 due to historic reporting patterns.

    But despite the fears surrounding the Q3 results, the company is optimistic that it will have a record November, and this will be primarily fuelled by the Grand Prix race that will be staged in Las Vegas.

    Occupancy rates at its hotels over this period are expected to be higher, and the group believes that the supposed downturn in Q3 won’t have too much of an impact on the Q4 figures.