(RTTNews) -  Bourse operator London Stock Exchange Group Plc (LSE.L: News ) reported Wednesday a decline in profit for the first half, reflecting a 9% drop in revenues due to lower trading levels and increased competition, particularly in UK cash equities. Looking ahead, the company noted that underlying market conditions remain uncertain, at least in the near term, and expects intense competition to remain in cash equities trading.

For the first half of the year, the company's profit before tax declined to GBP 79.4 million from GBP 127 million in the previous year.

Profit for the period attributable to equity holders dropped to GBP 49.3 million or 18.4 pence per share from GBP 81.7 million or 30 pence per share in the same period last year. Adjusted profit for the financial period attributable to equity holders was GBP 77.6 million or 28.9 pence per share, lower than GBP 106.1 million or 38.9 pence per share a year ago.

The company noted that adjusted earnings decreased as a result of lower revenues and the effect of GBP 20.4 million of non-recurring costs associated with the MillenniumIT acquisition, which is equivalent to 5.5 pence per share.

Revenues for the first half decreased 9% to GBP 310.9 million from GBP 342.5 million in the year-ago period. In constant currency, revenues for the period were down 13%.

Chris Gibson-Smith, chairman said, "Lower trading levels, together with intense competition from new trading venues with aggressive pricing, have contributed to lower equity trading revenues, the main area of decline for the Group."

However, LSE noted that there were good performances in both the Post Trade and Information & Technology Services divisions, which recorded increased revenues over last year and in aggregate comprised 53% of Group revenues.

Segment-wise, revenues from Capital Markets decreased to GBP 147.2 million from GBP 187.3 million in the previous year. Capital Markets comprises the Group's primary markets activities, providing access to capital for corporates and others, and the secondary market trading of cash equities, derivatives and fixed income.
Revenues from Primary markets declined to GBP 34.2 million from GBP 37.5 million last year, due to the expected fall in annual fee revenues following the reductions in market capitalization last year, the company noted. Secondary Markets revenues were GBP 95.2 million, down from GBP 131.6 million in the preceding year-period, reflecting a reduction in the value of UK cash equities traded.

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