The Webjet Limited (ASX: WEB) share price edged almost 10% higher last month after a sluggish performance in late January.
Indeed, it was a strong finish, considering its shares touched a three-month high of $6.18 on 11 February.
Nonetheless, investors appear to have mixed feelings when it comes to deciding the value of Webjet shares in the current climate. Its shares have wobbled towards the back-end of February given the tense geopolitical standoff between the West and Russia.
At the time of writing, the online travel agent's shares are down 3.80% to $5.32.
Is a full-recovery nearby for Webjet's earnings?
It has been relatively quiet on the news front from Webjet, with its shares in a sideways channel of late.
Before ascertaining as to when Webjet's earnings will return to normal levels, we take a look at its latest financials.
In November, the company released its first-half results for FY22, highlighting a rebound across the international travel industry.
Webjet reported a cash surplus of $3.5 million per month, a significant turnaround compared to FY21. Severe lockdowns led the company to record an average monthly cash burn of $5.5 million in the previous financial year.
Total Transaction Volume (TTV) revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) all soared over the 6-month period. TTV stood at 63% of pre-COVID volumes in its WebBeds' B2B business with many travel markets still yet to reopen.
Revenue on the other hand, came to $55.4 million, more than double the $22.6 million achieved in H1 FY21. EBITDA registered a loss of $38.2 million, an improvement from the $114.4 million loss in the prior corresponding period.
Expenses were also down materially compared to pre-COVID, reflecting strategic initiatives implemented by the company.
If the microenvironment goes on to be stable, Webjet's TTV could reach pre-COVID levels by the second-half of FY23. On top of that, its group portfolio will be a much leaner business, having trimmed 20% of operating costs.
Looking ahead, Webjet is scheduled to report its FY22 results towards the backend of May 2022.
Webjet share price summary
In the last 12 months, Webjet shares have lost around 5% after hitting the brakes in late January 2022. The share price closed at an eight-month low of $4.61 on 27 January.
Nonetheless, the company has gradually been moving on an upwards trend, but is still a long way off from pre-pandemic levels.
Based on valuation grounds, Webjet has a market capitalisation of around $2.02 billion, with approximately 380.51 million shares on issue.
