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Published Oct 06, 2023 01:05PM ET
© Reuters.
MGM Resorts (NYSE:) International, led by CEO Bill Hornbuckle, is grappling with the aftermath of a significant cyberattack that has resulted in operational disruptions and an estimated loss of over $110 million. The company disclosed these losses in an SEC 8-K filing on Thursday, detailing how the breach affected its website, casinos, email systems, restaurant reservations, hotel bookings, and digital room keys.
The hacking group known as Scattered Spider, which has widened its targets and cyberattack monetization strategies recently, executed the attack. The group’s previous victims include Caesars (NASDAQ:) Entertainment, from whom they collected data extortion ransom payments.
The disruption hit several MGM properties hardest, including Mandalay Bay, Bellagio, MGM Grand, Aria, and Luxor. The Cosmopolitan of Las Vegas, however, was not impacted. Personal data were stolen during the breach, but MGM confirmed that no customer bank account numbers or payment card details were compromised. In response to what it termed a ‘cybersecurity issue’, MGM shut down systems to mitigate further damage.
In an earlier attack claimed by another hacking group called ALPHV or BlackCat, MGM spent less than $10 million on immediate countermeasures to prevent hackers from accessing sensitive financial information. Despite this precautionary measure, hackers managed to steal customer data dating back to before 2019. As a result of this breach, MGM offered free identity protection and credit monitoring services to affected customers.
According to InvestingPro data, MGM has a market cap of $12.86 billion and has seen a revenue growth of 25.57% in the last twelve months. However, its stock has fared poorly over the last month, with a 1-month price total return of -19.97%. The company’s P/E ratio stands at 37.61, suggesting it’s trading at a high earnings multiple.
InvestingPro Tips provide some additional context. MGM’s management has been aggressively buying back shares, a sign of confidence in the company’s future.
MGM has taken a firm stance in refusing to communicate with the hackers who threatened more attacks on Sept. 14th. The company’s cybersecurity insurance is expected to cover the financial impact of these incidents. This approach contrasts with Caesar’s Palace’s response to a similar incident when they paid half of a $30 million ransom following their breach. For more in-depth analysis and tips, you can visit InvestingPro which offers a comprehensive suite of real-time metrics and insightful tips.
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