In first public outcomes, Branson’s Virgin Galactic posts $73 mln quarterly loss


SEATTLE (Information) – Billionaire Richard Branson’s area tourism firm, Virgin Galactic Holdings Inc (SPCE.N), mentioned on Tuesday its fourth-quarter web loss widened to $73 million from a year-ago lack of $46 million because it reported its first outcomes as a publicly traded firm.

FILE PHOTO: Sir Richard Branson stands on the ground of the New York Inventory Change (NYSE) forward of Virgin Galactic (SPCE) buying and selling in New York, U.S., October 28, 2019. Information/Brendan McDermid/File Photograph

The quarterly outcomes, which embody one-time transaction and different associated prices, come as the corporate is aiming for a primary industrial flight later this yr with Branson on board.

“It is going to be a transformative second for the corporate,” Chief Government George Whitesides informed analysts on a convention name, including that income and money move will ramp up in 2021.

Shares of Virgin Galactic have been unstable in after-hours buying and selling and have been final down 6.four%. Shares had rallied in latest days, pushed by investor curiosity within the first area tourism firm to hit public markets.

Virgin Galactic competes with billionaire-backed ventures similar to Blue Origin, based by Inc (AMZN.O) CEO Jeff Bezos, to be the primary to supply suborbital flights to fare-paying thrill seekers, presaging a brand new period of civilian area journey that would kick off as quickly as this yr.

Different gamers together with Elon Musk’s SpaceX and Boeing Co (BA.N) have their sights set on increased altitudes just like the Worldwide House Station, the moon and finally Mars.

Some 600 folks from 60 international locations have paid or put down deposits to fly on considered one of Virgin’s suborbital flights, price about $80 million in whole collected deposits and $120 million of potential income, the corporate mentioned.

A 90-minute flight, which permits passengers to expertise a couple of minutes of weightlessness, prices about $250,000.

Now, Virgin plans to grab on a wave of greater than 7,900 “registrations of curiosity” it has obtained since then from would-be astronauts by accumulating $1,000 deposits to safe a spot in line as seats grow to be obtainable, it mentioned on Tuesday.

Virgin Galactic has to date invested $1 billion in its reusable mid-air launch expertise.

Nearer to Earth, Virgin additionally plans to develop hypersonic passenger air journey that would dramatically reduce journey instances internationally, the corporate mentioned. For instance, flying from New York to London would take about an hour, it mentioned.

The corporate, which went public final yr, reported fourth-quarter income of $529,000, and $three.eight million for 2019, the primary full yr of outcomes.

Virgin Galactic went public by way of a merger with Social Capital Hedosophia Holdings Corp, a publicly traded shell firm, or particular function acquisition firm (SPAC), led by former Fb govt Chamath Palihapitiya.

Reporting by Eric M. Johnson in Seattle; Enhancing by Tracy Rucinski and Matthew Lewis