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MGM expects cybersecurity issue to negatively impact third-quarter earnings

MGM Resorts International said on Thursday operational disruptions due to a cybersecurity issue in September are expected to have a negative impact on its third-quarter results.

The company, which runs more than 30 hotels and gaming venues globally including in Macau and Las Vegas, was targeted by a hacking group named Scattered Spider, Reuters had reported earlier, citing two sources familiar with the matter.

MGM estimates the cybersecurity incident to have a negative impact of about $100 million to adjusted property core profit for the Las Vegas Strip Resorts and Regional Operations, it said in a regulatory filing, sending its shares down close to 1 per cent in trading after the bell.

The company said it also incurred a one-time expense of less than $10 million in the quarter ended Sept. 30 due to the incident, but does not expect a material impact to its financial performance for the full year.

Last month, the Las Vegas-based company said its hotels and casinos were back to normal operations but certain services including digital keys and mobile check-ins were not available.

MGM forecast occupancy in October to be 93 per cent compared with 94 per cent in the prior-year period but expects a full rebound in November for the Las Vegas Strip Resorts.

The company said it is well-positioned to have a strong fourth quarter, with record results expected in November primarily driven by Formula 1.

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