MGM Resorts International announced that it expects the recent cyberattack on its operations to result in approximately $100 million in expenses. While the exact extent of the one-time and future expenses is still being determined, the company believes that its cybersecurity insurance will cover the costs.
The majority of these expenses are anticipated to impact the third-quarter results, with minimal effects on the fourth quarter. MGM Resorts is scheduled to release its third-quarter earnings report in early November.
Despite the financial impact, MGM Resorts does not expect the cyberattack to significantly affect its financial condition and overall performance for the year. The company noted that the incident mainly affected occupancy rates due to disruptions in bookings through its website and mobile applications, primarily occurring in September.
In a related development, Clorox Co. also revised its outlook due to a cybersecurity attack it experienced during the summer.
MGM's Response to Cyberattack
MGM has disclosed that it incurred less than $10 million in one-time expenses related to the recent cyberattack. These expenses primarily included technology consulting services, legal fees, and expenses for third-party advisers.
While rival company Caesars Entertainment Inc. reportedly paid around $30 million in ransom after being hacked earlier this summer, MGM took a different approach. The company refused to pay hackers any ransom amount.
A limited number of customers had their Social Security and passport numbers compromised. The exact types of information accessed varied from individual to individual.
Fortunately, bank account details and payment-card information were not compromised during the attack.
MGM has stated that it will notify affected customers via email. Additionally, the company will provide identity protection and credit-monitoring services to these customers.
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