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MGM Resorts Overcomes Q3 Cyberattack Challenges with Record Revenue


 MGM Resorts Overcomes Q3 Cyberattack Challenges with Record Revenue

Despite facing a major cyberattack in Q3, MGM Resorts International reported record revenue of $3.97 billion. The cyberattack, which occurred in September, temporarily disrupted operations and resulted in an adjusted property EBITDAR impact of approximately $100 million. MGM CEO Bill Hornbuckle acknowledged the challenges, stating the company "went to hell and back," but highlighted the resilience of the team.


The record-breaking performance was primarily attributed to the success of MGM China, which offset declines in the US market. Additionally, the launch of BetMGM in the UK through LeoVegas contributed to MGM's positive Q3 results.


Hornbuckle expressed optimism for the future, citing upcoming events like Formula 1's inaugural Las Vegas race and the debut of the MGM Collection with Marriott Bonvoy. MGM China's exceptional performance, coupled with development opportunities in New York and Japan, adds to the positive outlook. Hornbuckle also emphasized the growth of the international digital business and BetMGM.


Breaking down Q3 performance, casino revenue played a significant role, climbing 45.8% to $2.05 billion. Despite the impact of the cyberattack, rooms revenue remained steady at $827.1 million. However, food and beverage revenue decreased by 3.4% to $698.3 million, and entertainment, retail, and other revenue fell by 13.8% to $385.7 million.


Segment-wise, Las Vegas Operations revenue was $2.10 billion, down 8.7% YoY, partially attributed to the cyberattack and the sale of the Mirage property. Regional Operations revenue decreased by 5.0% to $925.0 million, impacted by the cyberattack and the sale of Gold Strike Tunica. In contrast, MGM China reported a significant revenue increase of 834.5% to $813.0 million, driven by the removal of pandemic-related travel restrictions.


Operating costs were 18.5% lower at $3.63 billion, leading to a pre-tax profit of $224.3 million, compared to a loss of $1.19 billion in the previous year. MGM ended Q3 with a net profit of $161.1 million, a positive turnaround from the $576.8 million loss in the same period last year.


In the year-to-date performance, MGM reported revenue of $11.79 billion, a 23.6% increase YoY. Casino revenue increased by 40.6% to $5.88 billion, and rooms revenue was up 15.3% at $2.49 billion. Operating expenses were 28.5% higher at $10.24 billion, resulting in a net profit of $829.7 million, 30.3% lower than the previous year.


Hornbuckle acknowledged the challenging quarter but expressed pride in the company's accomplishments and the team's resilience.



Image License: Unsplash.com, Free to use, Author: Marco Bicca




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