bbc sports Celtic are counting the cost of failure to reach the Champions League group phase after a dramatic drop in turnover and an increase in debt.
Interim results for the six months to the end of 2009 show a 22.8% decrease in turnover to £36.11m.
Profit before taxation was £1.27m, down from £8.36m in the same period last year, while bank debt has risen to £3.13m from less than £1m.
The results do not include figures from a busy January of transfers at Celtic.
"It certainly reflects different, more difficult trading conditions, and it is plain that like other commercial concerns we are affected by the recession," said chairman Dr John Reid in a club statement.
"But it also reflects disappointing performance on the park; we did not qualify for the UCL Group Stage this season as we had hoped, instead participating in the Europa League.
"While our revenues have reduced, our financial performance remains highly creditable given all the circumstances.
"Despite the absence of Champions League participation, over 50,000 season tickets have been sold and our merchandising business is holding up well, with this year's away kit the best selling for many years.
"Our sponsor programme also remains one of the most successful in British football."
Celtic were eliminated from the Champions League in the final qualifying round by Arsenal and went on to have a disappointing campaign in the Europa League, finishing third in their section, with just six points from six games.
With manager Tony Mowbray making swingeing changes in personnel since his arrival last summer, Celtic have also struggled domestically and trail Scottish Premier League leaders Rangers by 10 points.
"Careful management of our resources has enabled us to progress the transition under our new manager Tony Mowbray and his team," added Reid.
"Rebuilding is never easy. But our summer transfer activity and the significant further strengthening of the squad in January honour the pledge we made to support our manager and improve the team.
"Braafheid, Fortune, Hooiveld, Kamara, Robbie Keane, Ki Sung Yueng, N'Guemo, Rasmussen, Rogne, Thompson, Zaluska and Zheng Zhi, together with several younger promising players, have joined us. Others have left - we thank them for their service and wish them well.
"We have an enormous task ahead in recovering the current league points deficit and cannot pretend otherwise, but we look forward to the SPL title challenge and a Scottish Cup run."
