UPDATE 1-BM&FBovespa Q2 profit rises less than expected

* Profit rises to 188.1 million reais, less than expected

* Trading volumes in stocks, derivatives push revenue down

* EBITDA drops 14 percent from the year-earlier period (Recasts, adds trading volumes, comments)

By Elzio Barreto and Guillermo Parra-Bernal

SAO PAULO, Aug 11 (Reuters) - BM&FBovespa, the world's fourth-largest exchange operator by market value, posted a weaker-than-expected second-quarter profit on Tuesday as trading volumes for stocks and derivatives fell.

Net income at the Sao Paulo-based company rose 14 percent to 188.1 million reais ($102 million) from 165.2 million reais a year earlier, the company said in a securities filing.

BM&FBovespa was expected to post profit of 290.1 million reais, according to the average forecast of seven analysts in a Reuters poll.

Net revenue fell 14.7 percent to 420.6 million reais from 492.8 million reais in the second quarter of 2008, signaling that investors are slowly returning to trading of local equities and derivatives following the fallout in global financial markets.

A decline in operational expenses pushed the company's profit higher compared with last year. Operating expenses tumbled 14 percent to 128.2 million reais from 148.3 million reais a year earlier.

Stock offerings in Brazil, which fizzled in 2008 after surging to a record in 2007, have gained steam in recent weeks with the sale of nearly 18.32 billion reais in shares since late June, including the record-setting IPO of credit-card processing company VisaNet (VNET3.SA).

"The appreciation of the stock market and the resumption of IPOs following the biggest IPO in Brazil's history signal that confidence is returning to investors and companies," Chief Executive Edemir Pinto said in the filing.

Trading fees fell 20 percent to 150.8 million reais from a year earlier.

Earnings before interest, taxes, depreciation and amortization, a measure of cash generation known as EBITDA, fell 14 percent to 259.9 million reais from 302.9 million reais in the second quarter of 2008, BM&FBovespa said in a securities filing.

(Reporting by Guillermo Parra-Bernal; Writing by Elzio Barreto; Editing by Phil Berlowitz)