Hibernian's profits have been almost slashed in half and their debts have also increased, according to financial results released by the club on Wednesday.
Hibs reported a fifth successive year of profit but the net figure was down from £1.2 million last year to £700,000 for the year ending July 31 2009. Net debt also rose from £2.8 million to £3.6 million year on year.
A 9% reduction in attendance at Easter Road and an increase in staff costs are two factors behind the figures. The club's turnover fell again but only by four per cent to £7.7 million.
However, continuing to trade profitably in the current financial climate is no mean feat for a Scottish Premier League club who underachieved again last season.
Chairman Rod Petrie said: "We have maintained our 'rock solid' financial position against a background of sporting performances which have fallen below the standards the club has set for itself in recent years."
Expressing a determination to cut costs, chief executive Scott Lindsay added: "Despite the hard work undertaken by the management team and staff off the field to successfully reduce operating costs, the club reported a £1.5 million operating loss, in line with the previous season.
"Sporting performance is a major factor in delivering revenue and the combination of a sixth-place SPL finish, lower attendances and early cup exits impacted significantly on the results. The deteriorating economic climate also contributed to the reduction in income."