Arabic Arabic Chinese (Simplified) Chinese (Simplified) Dutch Dutch English English French French German German Italian Italian Portuguese Portuguese Russian Russian Spanish Spanish
| (844) 627-8267

MGM Resorts faces $100m loss following ransomware attack, refuses to pay By | #hacking | #cybersecurity | #infosec | #comptia | #pentest | #ransomware | #hacking | #aihp

MGM Resort International reported a loss of $100 million in Adjusted Property EBITDAR following a ransomware attack by ALPHR (BlackCat), as detailed in its SEC form 8-K on Friday. This figure surpasses IBM (NYSE:IBM)’s 2023 global average data breach cost of $4.45 million by a significant margin. The company chose not to pay the ransom, instead opting to utilize cybersecurity insurance and shut down systems, which led to a compromise of customer data from before 2019.

The decision by MGM contrasts with that of Caesars (NASDAQ:CZR) Entertainment, which opted to pay a $15 million ransom and quickly resume operations. This approach, however, has been criticized for potentially encouraging cybercrime activity.

Despite the substantial loss, MGM’s Q2 revenue figures reveal a robust financial position. According to InvestingPro data, the company reported $14.78 billion in revenue for the Last Twelve Months (LTM) ending in Q2 2023, with a respectable growth rate of 25.57%. This indicates that the impact on its Q3 and Q4 financials may be minimal. Furthermore, the upcoming November Formula 1 racing event is expected to provide a significant earnings boost.

Several cybersecurity experts have commended MGM’s decision not to pay the ransom.

An InvestingPro Tip worth noting here is that MGM’s management has been aggressively buying back shares, which often signals confidence in the company’s future. Moreover, the company’s strong earnings should allow management to continue dividend payments, which is a positive sign for investors. For more insightful tips and real-time metrics, consider exploring InvestingPro’s premium features.

In addition to MGM, other victims of significant ransomware attacks in September included Save the Children, Auckland University, BORN, and Johnson Group. The manufacturing and real estate sectors were hit hardest, with the US being the most impacted region.

The MGM stock has fared poorly over the last month, with a 1-month price total return of -19.97% as per InvestingPro data. However, with a market capitalization of $12.21 billion, MGM remains a significant player in the industry. Its fair value, according to InvestingPro, is $38.55, suggesting potential for growth despite the recent challenges.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Get The News You Want

Read market moving news with a personalized feed of stocks you care about.

Get The App

Click Here For The Original Source.