Marriott’s Bottom-Line Hardly Impacted By Data Breach – ZMR News Blog

Marriott’s Bottom-Line Hardly Impacted By Data Breach

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While the Marriott’s data breach certainly affected the company’s reputation, the bottom line of the company is still unaffected. The data hack hasn’t caused any major problems for the company’s finances

Over $72 million has been lost so far due to the breach, with Q1 accounting for $44 million in losses. But insurance reimbursements of $71 million has already been received by the company, with $46 million paid in Q1, showing an overall net profit in Q1 results. The final quarter of the last year had seen the company end up with quite a large loss due to concerns over the data breach scandal.

The data breach affected 383 million users causing it to be among the biggest data breach hacks to ever occur in history. However, it was lower than 500 million affected users, which had been predicted initially. A lot of private information of several influential members of society has fallen in unsafe hands as a result of this hack.

The breach, which had begun in 2014, was not revealed by the international hotel chain until November last year. There was a major uproar over the issue by the press and the authorities. A major investigation was launched into the hacking scandal by the concerned authorities to get to the bottom of this.

Phone number, customer names, email addresses, credit card details and expiration dates, date of birth and passport numbers were compromised. As part of an apology measure, Marriott has offered free subscription to Webwatcher, which is a personal info tracking service, to all its affected guests.

Operating profit is estimated at $482 million, which was 1% lower than the previous quarter. The share repurchase program allowed EPS to rise by 5%, beating the predictions by most Wall Street pundits. Revenue remained the same, with$5 billion estimated as revenue.

Premarket trading caused the Marriott shares to fall 1% due to the report.

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