Celtic have revealed a 30 per cent decrease in revenue and a reduction on profit before taxation of over £14million, due in part to their failure to qualify for the Champions League.
The Parkhead club released the interim report for the six months to December 31, 2014 and, among key financial figures for the Scottish Premiership leaders, revenue decreased by 30.1 per cent to £31.3million, from £44.8million the previous year.
Profit from trading of £3.2million is in contrast to £10.5million in 2013, while profit before tax is £6.6million - from £21.3million - with the club having £5.3million cash in the bank, down from £5.7million.
Celtic failed in two attempts to reach the Champions League earlier in the season, but have battled through to the last 32 of the Europa League where they play Italian side Inter Milan later this month.
Dropping down to European football's second-tier club competition has influenced the financial results, according to chairman Ian Bankier.
He told club's official website: "A key factor influencing these results is the participation in the UEFA Europa League, as opposed to the UEFA Champions League.
"Revenue dropped for the period to £31.3m (2013: £44.8m). Operating expenses for the period decreased to £28.1m (2013: £34.3m), leading to a profit from trading, before asset transactions and exceptional operating expenses of £3.2m (2013: £10.5m).
"This trading performance, together with a lower gain on disposal of player registrations of £7.1m from £16.5m in 2013, are the main causes of the reduction in profit before taxation for the half year to £6.6m from £21.3m last year.
"Given the difficult economic climate and the challenging sector, it is pleasing that our business model allows us to report net cash of £5.3m as at 31 December 2014, compared to £5.7m in 2013, especially given the capital investment in projects including the Celtic Way.
"Each season, our overwhelming priorities are to win the SPFL Premiership and to qualify for the group stages of the UEFA Champions League.
"The strategy of the board is to aim to achieve this objective with prudent investment in the playing squad and by the continued creation of value through development of players, both from our youth academy and those identified by our football development operations."
Bankier expects the second half of the year to be even tougher financially for the Glasgow club, who, in addition to continued participation in the Europa League, still harbour hopes of the domestic treble.
He said: "As in previous years, the second half is expected to be more challenging in terms of financial performance with fewer home matches scheduled and no certainty on any further gains on the disposal of player registrations.
"Our strategy remains to live within our means.
"The football environment in Scotland continues to be challenging and we must operate within it in a fashion that does not unduly risk the long term future of this great club.
"Our key focus for the remainder of the year will be to build on the progress we have made in the first half of the season and to deliver silverware from competing in the three domestic competitions and remain competitive in the UEFA Europa League.
"Furthermore, we will continue to develop our squad for the challenges of qualifying for European competition in the summer."
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