MGM Resorts (NYSE:MGM) International reported a significant setback following a cyberattack in September that led to an estimated $100 million loss. The data breach disrupted services across the company's 28 properties, including online booking at mgmresorts.com. The affected hotels include Bellagio, Aria, Vdara at Aria, MGM Grand, the Signature at MGM Grand, Mandalay Bay, Delano Las Vegas, Four Seasons, Park MGM, NoMad Las Vegas, New York-New York, Luxor and Excalibur. However, The Cosmopolitan was not impacted.
The unauthorized data breach occurred on September 11 and was disclosed by the company on September 29 through an 8-K form filed with the United States Securities and Exchange Commission. The intrusion has caused a negative impact on MGM's Las Vegas Strip Resorts and Regional Operations. Despite ongoing investigations indicating containment of the breach, it has resulted in considerable financial damage.
CEO Bill Hornbuckle confirmed the disruption of services due to the cyberattack. By September 20, most systems were restored and operational. In an attempt to mitigate losses and provide reassurance to customers, MGM has offered identity protection and credit monitoring services to those affected by the breach. A toll-free hotline "800-621-9437," operational excluding major U.S. holidays, along with a dedicated webpage referencing "engagement number B105892," have been established for further assistance.
Despite the setback from the cyberattack and an estimated $10 million in one-time expenses related to it, MGM is optimistic about its Q4 earnings. The company is expecting a boost from the November Formula One race which is likely to attract significant patronage to its properties.
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