MGM: Cyber Attack Will Cost $100 Million

This week MGM Resorts International announced that they expect the cyberattack on its systems to negatively impact the company to the tune of $100 million.

The company was breaked by hacking group Scattered Spider, who demanded a ransom be paid in order for MGM to maintain control of its systems. When MGM didn't pay, the group took down large swaths of MGM's properties in Las Vegas, including hotel room access and even slot machines.

MGM now says that despite having insurance which is expected to cover the cost, there will be a negative impact on the company's third-quarter financials. EBITDAR will be down by $100 million during this time, although there will minimum impact on the fourth-quarter and that the results won't harm the overall financial health of the company. MGM did record less than $10 million during the quarter in expenses related to the attack, such as legal fees and consulting services.

Of note, MGM says that the upcoming Formula 1 race in November will help the company bring in additional revenues.

In a statement, MGM said: "Although the company currently believes that its cybersecurity insurance will be sufficient to cover the financial impact to its business as a result of the operational disruptions, the one-time expenses described above and future expenses, the full scope of the costs and related impacts of this issue has not been determined.

"Based on the ongoing investigation, the company believes that the unauthorized third-party activity is contained at this time.

"MGM Resorts takes the security of its systems and data very seriously and has put in place additional safeguards to further protect its systems."