MGM Resorts International (NYSE: MGM) saw a rise in its shares during Wednesday’s after-hours trading session after exceeding third-quarter earnings estimates, despite being impacted by a September ransomware attack. The operator, which is the largest on the Las Vegas Strip, reported earnings of 64 cents per share on revenue of $3.97 billion for the July through September period. This beat analyst expectations of 49 cents on sales of $3.89 billion.
The company had previously warned investors that its third-quarter earnings would be affected by $100 million and incurred one-time costs of at least $10 million due to the cyberattack. However, President and CEO Bill Hornbuckle said in a statement, “With the incident now behind us, we are a stronger company having been through the challenge.”
The net revenue at MGM’s Las Vegas properties declined to $2.1 billion from $2.3 billion a year earlier due to the cyber event and the sale of the Mirage. The net revenue at the company’s regional casinos also dropped to $925 million from $974 million a year earlier, with the ransomware attack and the sale of Gold Strike Tunica cited as reasons for the decline.
Despite these challenges, MGM announced a new $2 billion share buyback program, signaling its belief in the value of its own stock. CFO Jonathan Halkyard stated, “Year-to-date, we have repurchased approximately $1.7 billion in stock. Our buyback program totals $6.2 billion since the beginning of 2021, reducing our share count by over 30%.”
The company also expressed optimism about the upcoming Las Vegas Grand Prix and the potential return of the Oakland Athletics to Las Vegas. MGM expects to reach a deal to avert a labor strike and stated that the race weekend is expected to be a record event for MGM Strip casinos.
Overall, despite the challenges faced by the September cyberattack, MGM Resorts International remains optimistic about its future prospects and continues to invest in its own stock while exploring new opportunities for growth and expansion.