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Virgin Galactic trims losses

May 8, 2024

By Chris Forrester

Virgin Galactic unveiled its latest financial report on May 7th for its Q1 trading. The space tourism company, backed by Sir Richard Branson, also told analysts that its next passenger flight would take place on June 8th subject to the usual weather and technical considerations.

As for Galactic’s numbers, the California-based operator said it received $2 million (€1.86m) in revenues during the quarter year (compared to $400,000 in the same period last year). Its cash position remains strong, it said, with $867 million in cash, cash equivalents and marketable securities in hand.

Michael Colglazier, CEO of Virgin Galactic, commented: “It’s an exciting time for Virgin Galactic as we celebrate the success of VSS Unity with its upcoming ‘Galactic 07’ mission and remain laser focused on executing our Delta Class program. Tool delivery and parts fabrication are beginning to accelerate as we work to complete the bulk of the Delta design phase this summer and move more fully into the build phase. We remain on track for commercial service in 2026.”

Net loss of $102 million, compared to a $159 million net loss in the first quarter of 2023, with the improvement primarily driven by lower operating expenses and an increase in interest income. Net cash used in operating activities totalled $113 million, compared to $136 million in the first quarter of 2023.

Production schedule for its new Delta Class spaceships remains on track for revenue service in 2026. Virgin’s new Eve Class rocket-planes are expected to support an increased flight rate of up to 125 flights per year and have an annualised run-rate of $450 million in revenue with the first two Delta Class spaceships.

Revenue for Q2 2024 is expected to be approximately $3.5 million.

Categories: Articles, Business, Results