Morningstar posted net income of $20.5 million (41 cents per share) in the second quarter, down from $28 million (57 cents per share) for the same quarter a year earlier.

"We continue to face difficult business conditions during the quarter," said CEO Joe Mansueto.

Falling assets under advisement in investment consulting drove the revenue decline, with assets down roughly 43 percent from the year before. Cost saving measures implemented in late 2008 and early 2009 were offset by recent acquisitions as well as a $3.5 million penalty for timing of tax deposits.

Morningstar's investment information segment saw lower revenue in many product lines, and internet advertising sales were targeted as the biggest driver behind revenue decline.

The investment management segment had revenue of $21.8 million, down 28.7 percent from the $30.7 million in the same period for 2008. Investment consulting suffered due to lack of renewals among clients, and assets under advisement down about 43 percent since last year. 

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