LAS VEGAS (KLAS) — MGM Resorts International expects to reach an agreement with the Culinary Union today, according to CEO Bill Hornbuckle.
That follows this morning’s announcement of a tentative agreement between Caesars Entertainment and the union.
Hornbuckle made the comment during the company’s announcement of third-quarter earnings, where he also talked about the September cyberattack‘s impact on Las Vegas operations. Revenue for Las Vegas Strip resorts was nearly $200 million below levels reported in Q3 of 2022.
MGM estimates the impact of the cyberattack at $80 million in Las Vegas, and said there was some effect on regional resorts as well. MGM initially estimated the cost at $100 million in early October. Officials said insurance would cover the costs the company suffered as a result of the loss of the cyberattack.
Hornbuckle said the company went “to hell and back” as the cyberattack played out, and he took time to thank employees for maintaining a high level of service. “With the incident now behind us, we are a stronger company having been through the challenge.”
He also said the company intends to spend $30 million to $40 million on hardware that will help prevent cyberattacks in the future.
The Las Vegas-based company reported earnings of $161.1 million a profit of 46 cents per share. The results topped Wall Street expectations.
Las Vegas Strip resorts report revenue down $195 million compared to Q3 in 2022. Revenue on the Strip was $2.1 billion. Overall, MGM reported revenue of $3.5 billion, up by $557 million on the strength of business returning in Macau.
Hornbuckle, while admitting traffic disruptions have been difficult, said he’s looking forward to the Formula One race: “Anyone coming next week, let’s go racing because I want to have some fun for once. I’m tired of this!”
When investors asked about the recent trend in declining room prices as F1 approaches, Hornbuckle said MGM properties on the Strip are charging an average rate over $900 a night. MGM has sold out the Bellagio Fountain Club and 10,000 tickets to the race. He expects $60 million in incremental hotel revenues from the weekend, and casino action could be eye-popping.
Hornbuckle said the company is looking at 50% above any other event for “theoretical win” while F1 is in town.