UnitedHealth has shown by example that it is impossible to save money on cybersecurity.
UnitedHealth, the parent company of Change Healthcare, which was affected by the ransomware attack, reported that the total cost of eliminating the consequences of the cyber attack for the first quarter of 2024 was $872 million.
In addition to this amount, UnitedHealth provided upfront financing and interest-free loans of more than $6 billion, allocated to support medical institutions affected by the incident.
In its quarterly report, UnitedHealth clarified that the total impact of the attack on the company's financial results in the first quarter is estimated at $0.74 per share. It is expected that by the end of the year, the figure will increase to $1.15-$1.35 per share.
The company continues to spend on fixing the consequences of the attack, and it is expected that the total amount of expenses related to disruptions in operation and recovery will exceed $1 billion. This amount also includes paying a ransom of $22 million to the extortionists.
By comparison, the MGM Resorts casino chain, which was also affected by the cyberattack last year, did not pay the ransom, but the cost of restoring systems and eliminating the consequences of the attack amounted to $100 million, including losses from downtime and operational violations, as well as data leaks.
UnitedHealth reported revenue of $7.9 billion in the first quarter. with a net loss of $1.221 billion (15.46%), the company also provided adjusted earnings per share for the quarter of $6.91, which includes $0.25 for "business impact of the outage" but excludes the sale of units in Brazil and direct costs to combat the cyberattack of $0.49 per share.
Preliminary trading in UnitedHealth shares showed a 7.5% increase after the release of financial results, which was a positive moment after a significant drop since the attack.
UnitedHealth Share Price
UnitedHealth Group CEO Andrew Whitty said the company's top priority remains improving services for our customers and ensuring sustainable growth, despite responding quickly and effectively to the attack against Change Healthcare.
Change Healthcare is still feeling the effects of the incident. The complexity of the situation is compounded by the fact that ALPHV ransomware deceived the company, disappearing shortly after receiving the ransom. According to rumors, the group's partners who carried out the attack never received their share of the proceeds, which is why they began to cooperate with the RansomHub group and continue to blackmail Change Healthcare using the same stolen data.
UnitedHealth, the parent company of Change Healthcare, which was affected by the ransomware attack, reported that the total cost of eliminating the consequences of the cyber attack for the first quarter of 2024 was $872 million.
In addition to this amount, UnitedHealth provided upfront financing and interest-free loans of more than $6 billion, allocated to support medical institutions affected by the incident.
In its quarterly report, UnitedHealth clarified that the total impact of the attack on the company's financial results in the first quarter is estimated at $0.74 per share. It is expected that by the end of the year, the figure will increase to $1.15-$1.35 per share.
The company continues to spend on fixing the consequences of the attack, and it is expected that the total amount of expenses related to disruptions in operation and recovery will exceed $1 billion. This amount also includes paying a ransom of $22 million to the extortionists.
By comparison, the MGM Resorts casino chain, which was also affected by the cyberattack last year, did not pay the ransom, but the cost of restoring systems and eliminating the consequences of the attack amounted to $100 million, including losses from downtime and operational violations, as well as data leaks.
UnitedHealth reported revenue of $7.9 billion in the first quarter. with a net loss of $1.221 billion (15.46%), the company also provided adjusted earnings per share for the quarter of $6.91, which includes $0.25 for "business impact of the outage" but excludes the sale of units in Brazil and direct costs to combat the cyberattack of $0.49 per share.
Preliminary trading in UnitedHealth shares showed a 7.5% increase after the release of financial results, which was a positive moment after a significant drop since the attack.
UnitedHealth Share Price
UnitedHealth Group CEO Andrew Whitty said the company's top priority remains improving services for our customers and ensuring sustainable growth, despite responding quickly and effectively to the attack against Change Healthcare.
Change Healthcare is still feeling the effects of the incident. The complexity of the situation is compounded by the fact that ALPHV ransomware deceived the company, disappearing shortly after receiving the ransom. According to rumors, the group's partners who carried out the attack never received their share of the proceeds, which is why they began to cooperate with the RansomHub group and continue to blackmail Change Healthcare using the same stolen data.
