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The breach affected various facets of the company’s operations, including online booking systems, slot machines, and digital locks on hotel doors. MGM Resorts did not succumb to the hackers’ demands for ransom, unlike Caesars (NASDAQ:CZR) Entertainment which paid $15 million during a similar attack.
In the wake of this incident, MGM Resorts has taken steps to assist affected customers by providing free credit monitoring and identity protection services. The company confirmed that customer personal information was compromised during the attack; swift action prevented any financial data from being accessed.
The cyberattack coincided with the planned launch of the MGM Collection with Marriott Bonvoy, a partnership with Marriott International (NASDAQ:MAR). This development was not directly affected by the breach.
The hackers behind the attack were identified as Russia-linked ransomware gang AlphV (BlackCat) and affiliated group Scattered Spider, known for their social engineering schemes. These groups have been implicated in similar attacks on other major corporations.
According to InvestingPro data, MGM has a market capitalization of $12.51 billion and a P/E ratio of 36.37. The company’s revenue for the last twelve months was $14.78 billion, with a gross profit of $7.17 billion. The company’s stock has seen a 1-month price total return of -19.97% and a 1-year price total return of 4.42%.
InvestingPro Tips suggests that MGM’s management has been aggressively buying back shares, indicating their confidence in the company’s future. Additionally, the company’s strong earnings should allow management to continue dividend payments. Despite recent challenges, MGM’s liquid assets exceed short-term obligations, providing a measure of financial stability.
Despite these setbacks, MGM is optimistic about its recovery. The company anticipates a 93 percent occupancy rate for October and record results in November. These predictions are largely driven by upcoming events such as the Formula One racing event and the Formula 1 Las Vegas Grand Prix.
For those interested in more comprehensive insights, InvestingPro provides additional tips and real-time metrics to make informed decisions. To gain access to these valuable resources, visit InvestingPro.
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