Tullett Prebon reports 3 percent drop in revenues

Tue Jul 30, 2013 2:21am EDT

* First-half revenues fall 3 pct

* Pre-tax profit 62.8 mln stg vs 66.4 mln stg in 2012

* Trading environment remains challenging

LONDON, July 30 (Reuters) - Tullett Prebon reported a 3 percent drop in first-half revenues on Tuesday, as challenging market conditions and subdued trading weighed on the inter-dealer broker's business.

The London-based broker said revenues were 439.8 million pounds for the six-months to end-June, down from 455.1 million pounds a year earlier. The fall in revenue came despite a late surge in trading volumes in May and June, triggered by a rise in benchmark bond yields.

Underlying profit before tax fell to 62.8 million pounds from 66.4 million pounds in 2012.

Broker-dealers like Tullett and rivals ICAP and BGC Partners match buyers and sellers of financial instruments including bonds, currencies and futures.

Tullett said that cost-cutting had helped the broker weather a difficult half-year. Broker compensation costs as a percentage of broker revenues dropped slightly to 58.2 percent from 59.7 percent last year, the company said.

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