Virgin Galactic Shares Rise After Report
Virgin Galactic Releases 2Q2021 Financial Results; Shares Up 5.84% During Main Trading Session on Aug. 6
Financial results were mixed – The company presented a lot of news and a specific schedule for the year ahead – Quotes are growing precisely due to the company’s announcements and the resumption of ticket sales.
Key financial indicators – Revenue was $571 thousand, which is better than analysts’ expectations $300 thousand – Adjusted EBITDA was – $ 56 million compared to $54 million in Q2 2020.
Net loss increased from $71.9 million in Q2 2020 to $94.1 million Loss per share was $0.39, which is worse than Wall Street’s expectations of $0.33 – The number of booked flights remained at the level of 600, no cancellations occurred.
Although the report turned out to, however, drew investors’ attention, not to the statements of management. Nevertheless, there was a lot of news and announcements. Although most of them are long-term, they have contributed to the growth of stocks.
Ticket selling. The company resumed the sale of tickets for future flights, and their cost rose from $ 250,000 to $ 450,000. It is noteworthy that you can buy one seat or several at once: for a company of friends or family. It also became possible to redeem the entire interior of the ship.
The cost of a research flight or astronaut training remained at $ 600,000.
The next flight is for late September with the Italian Air Force, which will generate some revenue for VG. The mission’s success may determine the interest of other space agencies, researchers, or the military in using the VG for space travel in the future.
The EVE launch vehicle, which delivers the spacecraft to the required altitude, will be upgraded until mid-2022. After that, a new test flight with a complete cockpit will confirm the operability of all systems.
The commercial program, carried over from 2021 to early next year, is expected in Q3 2022.
Virgin has a new ship – Delta, capable of making a new flight in a week. The current VSS Unity ship is capable of flying at intervals of four to five weeks.
The company plans to build a new spaceport next year, as the pace of spacecraft launches increases.
