* Revenue 803.7 mln stg versus 2012's 850.8 mln
* Profit before tax down to 99.6 mln stg from 111.3 mln
* Dividend unchanged at 16.85 pence per share
LONDON, March 4 Interdealer broker Tullett
Prebon said its full year revenue fell 6 percent, just
behind analysts' expectations, as low market volatility dampened
market activity and new regulations for derivatives created
uncertainty for clients.
The broker, which matches buyers and sellers of currencies,
bonds and swaps, said on Tuesday that revenues for the year
ending Dec. 31 were 803.7 million pounds ($1.34 billion), down
from 850.8 million pounds a year earlier.
That compared with a consensus estimate compiled by Tullett
for full-year revenue of 807 million pounds.
Pretax profit was 99.6 million pounds, down from 111.3
million in 2012 but slightly ahead of the 102 million expected
Chief Executive Terry Smith said market conditions worsened
over the course of 2013 and he expected them to continue to be
Revenue in the first two months of 2014 was 12 percent lower
than the year before, stripping out the effect of currency
fluctuations, he said.
Tullett, like rivals ICAP and BGC Partners,
have faced sweeping reforms of the market for swaps - financial
instruments used by companies to cover their exposure to changes
in interest rates, foreign exchange rates and credit ratings.
Global regulators decided after the financial crisis that
derivatives such as interest rate swaps and credit default
swaps, previously bought and sold through dealers, should be
traded on electronic platforms, centrally cleared and recorded,
in the interest of improved clarity and lower risk.
Tullett said it has faced higher costs in complying with new
"We have taken action to strengthen the business and we
believe that we are well positioned to benefit from an upturn in
the level of activity in the financial markets," Smith said.
Tullett's board proposed a dividend of 16.85 pence per
share, unchanged from a year earlier.
Shares in the FTSE 250 company are down more than 11
percent this year and closed at 327.5 pence on Monday.