Hibernian have reported a fifth successive year of profit, but the net figure was down from £1.2m last year to £700,000 for the year ending 31 July.
The Edinburgh club's net debt rose from £2.8m to £3.6m year-on-year, while turnover fell again, by 4% to £7.7m.
A 9% reduction in attendance at Easter Road and an increase in staff costs are two factors behind the figures.
Hibs sold striker Steven Fletcher for £3m at the end of June and raised money from the sale of defender Rob Jones.
Unlike a number of Scottish Premier League clubs, Hibs have continued to trade profitably in a worsening economic climate and despite a season of underachievement on the field of play.
The combination of a sixth-place SPL finish, lower attendances and early cup exits impacted significantly on the results
Hibernian chief executive Scott Lindsay
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."
Hibs replaced Mixu Paatelainen with John Hughes as manager during the summer and striker Anthony Stokes and midfielder Liam Miller have been high-profile recruits, following several departures.
The sale of Fletcher and Jones raised approximately £3.5m, while Hughes has reduced the size of the squad at the Edinburgh club.
However, Hibs stressed that they would continue a policy of cutting 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 £1.5m 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."
This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.