An exterior view of MGM Grand hotel and casino, after MGM Resorts shut down some computer systems due to a cyber attack in Las Vegas, Nevada, U.S., September 13, 2023. REUTERS/Bridget Bennett/File Photosaid on Thursday operational disruptions due to a cybersecurity issue in September are expected to have a negative impact on its third-quarter results.
The company, which runs more than 30 hotels and gaming venues globally including in Macau and Las Vegas, was targeted by a hacking group named Scattered Spider, Reuters hadMGM estimates the cybersecurity incident to have a negative impact of about $100 million to adjusted property core profit for the Las Vegas Strip Resorts and Regional Operations, it said in a regulatory filing, sending its shares down close to 1% in trading after the bell.
The company said it also incurred a one-time expense of less than $10 million in the quarter ended Sept. 30 due to the incident, but does not expect a material impact to its financial performance for the full year.MGM forecast occupancy in October to be 93% compared with 94% in the prior-year period but expects a full rebound in November for the Las Vegas Strip Resorts.
The company said it is well-positioned to have a strong fourth quarter, with record results expected in November primarily driven by Formula 1.U.S. National Highway Traffic Safety Administration officials on Thursday told a public hearing the government should require the recall of 52 million air bag inflators produced by auto suppliers ARC Automotive and Delphi Automotive because they may rupture and send metal fragments flying.