MGM Resorts expects a $100 million hit from cyberattack

MGM Resorts International (NYSE:) experienced operational disruptions at its Las Vegas resorts due to a previously disclosed cybersecurity attack.

The company now disclosed that the impact on its third-quarter results includes a roughly $100 million negative effect on adjusted property EBITDAR for Las Vegas Strip Resorts and Regional Operations.

Moreover, occupancy rates for September fell to 88% from 93% year-on-year. However, the company anticipates a rebound in occupancy rates for October and is confident that its cybersecurity insurance will cover the financial impact.

MGM Resorts believes the unauthorized third-party activity is now contained and remains well-positioned for a strong fourth quarter.

The cyberattack on MGM was detected on September 10, prompting the company to take action by shutting down its IT systems.

This resulted in various disruptions, including issues with slot machines, interruptions in online hotel bookings, and the need for hotel staff to manually check-in guests using pen and paper for several days, among other impacts.

The WSJ reported today that MGM refused to pay ransom to hackers.

MGM shares rose nearly 1% in early Friday trade.