Thomas Cook first half losses narrow, says it expects to resume dividend next year

LONDON (ShareCast) - Tour operator Thomas Cook (Xetra: A0MR3W - news) said on Wednesday that its dividend payment could resume next year as it reported a narrowing of its first-half operating loss to £220m from £283m, despite falling revenue. The company attributed the narrowing of the loss to a decrease or complete removal of costs associated with restructuring, goodwill impairments, the disposal of assets and finance-related charges.

Revenue fell to £2.7bn from £3bn, and net debt now stands at £700m from £811m.

"I am confident that we can continue to make Thomas Cook a stronger and more profitable holiday company, as we continue to implement our clear strategy for profitable growth, and move towards the resumption of dividend payments in respect of full-year 2016 earnings," said chief executive Peter Frankhauser.

The company has come under scrutiny recently after a court found that it had breached its duty of care when two children died from carbon monoxide poisoning at one of its resorts in Corfu.