A recent cyberattack on MGM Resorts (NYSE:MGM) International is projected to cost the company around $100 million in Q3, disrupting operations and compromising data of customers who frequented the resorts before March 2019. The breach, which occurred on Friday, exposed some Social Security and passport numbers but did not involve any bank account or payment card information.
The FBI is currently investigating the incident. MGM has reported no instances of identity theft or account fraud related to the breach. Interestingly, The Cosmopolitan of Las Vegas, a property under MGM, remained unaffected by the cyberattack.
Despite the setback, the majority of guest-facing systems have been restored and MGM expects no impact on its full-year results. The company has incurred under $10 million in costs primarily for technology consulting services and legal defense to respond to the attack.
While the cyberattack is anticipated to negatively affect the Las Vegas Strip division's adjusted property core profit in Q3, MGM remains optimistic about its Q4 results. The optimism stems from several factors including a Formula One event scheduled in Las Vegas, record results expected in November, and a high occupancy rate of 93% reported in October.
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