MGM Resorts International’s stock saw a 4.86% increase, closing at $36.48 on Friday. The move was buoyed by news that the company possesses ample cyber insurance to mitigate losses from a recent cyberattack.
Over the past month, the stock had suffered a 16% decline. The Las Vegas-based firm projects that the September cyberattack will negatively impact the third quarter by approximately $100 million, with minimal repercussions in the fourth quarter. However, MGM does not anticipate a substantial impact on its full-year results. Thus far, the company has incurred less than $10 million in one-time expenses related to the attack during the third quarter.
MGM Resorts notified law enforcement and took prompt measures to safeguard data after discovering the hack on September 12, which disrupted operations and services at its Las Vegas properties. While an unauthorized third party accessed some customer personal data, MGM chose not to comply with the hackers’ ransom demand. The details of their cyber insurance policy were not available.
CEO Bill Hornbuckle assured customers that their bank account and payment card information remained uncompromised due to the company’s swift response. Although the attack temporarily disrupted various services, including slot machines and online hotel bookings, MGM reported a return to normal guest operations as of Thursday.
Other News: MGM Has $200M Cyber Insurance Policy – Report(Opens in a new browser tab)