Newcastle United announced yesterday its operating profit has fallen by £3.3m.

Profits fell from £11.6m to £8.3m, a drop of nearly a quarter.

Group turnover fell £6.2m to £90.2m after the team failed to qualify for the Champions League, which contributed to a £8m fall in TV revenue to £33.7m.

This was also a factor in the £200,000 drop in pre-tax profits to £4.2m, which was offset by an extended run in the UEFA Cup.

Net debt fell by £5.7m, but still stands at £37.2m, although the sale of Jonathan Woodgate to Real Madrid went through after the company's year end.

Business experts said the results indicated the club had dropped out of the footballing big time. But Newcastle United said it was delighted with the club's off-the-field performance.

Newcastle United chairman Freddy Shepherd said: "I am pleased to announce a further successful year for Newcastle United, delivering a strong performance both on and off the pitch."

Wage and salary costs were down one per cent to £44.9m, with the wages-to-turnover ratio held below 50 per cent.

Match revenue increased by four per cent to £33.9m, mainly due to an extra match being played at St James' Park.

Season tickets sold out and the average attendance rose from 51,053 to 51,715, although attendances for UEFA competitions dropped from 43,666 to 41,753.