Space Ambitions Come With High Cost
Posted on 05/11/2023
Richard Branson’s Virgin Galactic has a new space flight coming this month, however the cost of the program remains high. The company’s Q1 2023 loss was US$ 159.4 million, up from a loss of US$ 93.1 million in Q1 2022. The company still has cash and securities totaling US$ 874 million, down from US$ 980 million at the end of the Q4 2022. Revenue is inconsequential.
CEO of Virgin Galactic Michael Colglazier said “research and development expenses” account for the financial picture. “Steady progress” is ongoing on the Delta spaceships. The VSS Unity spacecraft is prepared to carry a crew of employees, and following that, a commercial expedition is planned for the summer.
Galactic’s investors hope the company doesn’t meet the same fate as Virgin Orbit. Richard Branson’s plan to launch satellites into orbit disintegrated when Virgin Orbit filed for bankruptcy in April. It came after a failure in the U.K. earlier this year where nine satellites fell to the ground after launch. Despite launching over 30 satellites, finances strained significantly. SPDR’s S&P Aerospace & Defense ETF is a significant holder of Galactic, with 4.11% of shares outstanding, for a total value of US$ 46,674, 496.