By Sabela Ojea
Shares of MGM Resorts International on Friday rose a day after the company said it has enough cybersecurity insurance to cover losses from a hacker attack.
At 1:15 pm E.T., shares were up 5.4% at $36.68. The stock has dropped 16% in the past month.
The September cyberattack is expected have a negative financial impact of about $100 million in the third quarter, and a minimal impact during the fourth quarter, the Las Vegas company said Thursday.
However, the hit to MGM’s full-year results isn’t expected to be material, MGM Resorts said.
So far, it has incurred less than $10 million in one-time related expenses in the third quarter, MGM said in a securities filing.
On Sept. 12, MGM Resorts said it notified law-enforcement officials about the hack and shut down certain systems to also protect its data. The cyberattack crippled operations and disrupted service at its Vegas properties.
The company’s continuing investigation over the attack found that an unauthorized third party obtained personal information from some of its customers. MGM refused to pay a hackers’ ransom demand, a person familiar with the matter told The Wall Street Journal.
Chief Executive Bill Hornbuckle said in a Thursday letter to customers that their bank account numbers or payment card information wasn’t compromised because of the company’s quick and early response.
The September shutdowns hobbled slot machines, interrupted online hotel bookings and required hotel workers to check-in guests using pen and paper. Guest operations have returned to normal, MGM said Thursday.
Write to Sabela Ojea at [email protected]; @sabelaojeaguix
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