Morningstar Inc. (NASDAQ:MORN) filed Quarterly Report for the period ended 2012-09-30.
Morningstar Inc has a market cap of $3.03 billion; its shares were traded at around $62.59 with a P/E ratio of 30.2 and P/S ratio of 4.8. The dividend yield of Morningstar Inc stocks is 0.6%. Morningstar Inc had an annual average earning growth of 7.3% over the past 5 years.
Highlight of Business Operations:Revenue for the first nine months of the year increased 3.1% to $487.7 million. Currency movements had a negative effect, lowering revenue by approximately $4.9 million. Excluding the effect of foreign currency translations, our consolidated revenue rose about $19.8 million, or 4.2%, in the first nine months of 2012.
International revenue made up 29.2% of our consolidated revenue in both the third quarter and first nine months of 2012. More than half of our international revenue is from Europe, with most of the remainder from Australia and Canada. Revenue from international operations was down $0.3 million, or 0.7%, to $46.9 million for the third quarter, but rose 2.0%, or $2.8 million, to $141.2 million in the first nine months of 2012.
In the third quarter of 2012, Investment Information segment revenue increased $3.6 million, or 2.8%, to $129.4 million. Investment Information segment revenue increased $16.7 million, or 4.5%, to $391.0 million in the first nine months of 2012. Morningstar Direct, Morningstar Data, and Advisor Workstation were the main contributors to revenue growth in both periods, partially offset by lower revenue for Morningstar.com and Morningstar Structured Credit Ratings.
Investment Management segment revenue decreased $2.7 million, or 7.7%, in the third quarter of 2012. Investment Management segment revenue decreased $1.9 million in the first nine months of 2012. Our largest client in the Investment Management segment began managing several fund-of-funds portfolios in-house in April 2012. We did not receive any revenue from our work on these portfolios in the third quarter of 2012, compared with about $3.1 million in the third quarter of 2011, which represented about 9.1% of Investment Management segment revenue. We received $3.8 million in revenue from our work on these portfolios in the first nine months of 2012 compared with $9.3 million in revenue in the first nine months of 2011. This loss of this business was the primary driver of the segment revenue decline in both periods.
Revenue for Ibbotson Australia Managed Portfolios was flat in the third quarter of 2012 and declined about $0.8 million in the first nine months of 2012. The lower revenue mainly reflects lower average assets levels during the first nine months of 2012 compared with the same period in 2011. Assets under management for Ibbotson Australia totaled $3.1 billion as of September 30, 2012, up slightly from $2.9 billion as of December 31, 2011, and up about $0.3 billion compared with $2.8 billion as of September 30, 2011.
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