Celtic have reported pre-tax profits of £10.07m for the six months to December 31 2007.
The figure marks a fall from the figure of £17.94m for the corresponding period in 2006.
Celtic have largely attributed the dip in profits to fewer home games being played, compared to the second six months of 2006, and to the involvement of Rangers in the Champions League group stages, which meant Scotland’s allocated windfall from the competition has been shared.
In the 2006/07 season, Celtic had been Scotland’s only team to reach the group stages, and did not have to share the revenue.
Turnover was down 9.3% to £42.43m, with operating profit at £9.92m compared to £14.76m in 2006.
Celtic played 16 home games at Parkhead in the second half of last year, compared to 18 from July 1 to December 31 in 2006, meaning a reduction in income.
The club have reported a significant reduction in their net debt, down from £15.02m to £6.81m.
Operating expenses increased by 1.5% to £32.52m.
Chairman John Reid said: “Our retained profit for the period of £10.07m compares with £17.94m last year, again mainly due to the two fewer home games, a reduction in gains from player trading and not being Scotland’s sole participant in the UCL (UEFA Champions League).
“Strong cash generation places our total net debt at £6.81m against £15.02m at the same time last year.
“Looking forward, as with previous years trading performance in the remaining months of the financial year, with fewer home matches scheduled, will not be at the same level as that in the first six months.
“Once again this year, our performance has been heavily influenced by participation in the UEFA Champions League.
“The company continues to benefit financially and in football terms, having reached the last 16 for the second year in succession.
“Credit must go to Gordon Strachan and his team for keeping Celtic at the highest level in European football.”