Liverpool Football Club lost almost £50m in 2012-13, but believes it is heading in the correct commercial direction.
Last season, debts at the Premier League club decreased by 29% to £45.1m as revenue increased by 9% to £206.1m.
A cash injection of £46.8m by Liverpool FC owner Fenway Sports Group allowed the club to repay a stadium loan.
The Reds, currently second in the table behind Chelsea, hope to be playing in the Uefa Champions League next season.
They have not taken part in Europe’s premier club competition since 2009-10, but qualification would bring lucrative revenues.
With 10 league games to play, Liverpool is in with a chance of winning their first English championship since 1990.
Club managing director Ian Ayre said: “These results demonstrate that the financial health of the club continues to make good progress as we continue our journey to transform the club on and off the pitch.
“Over the past four or five years, revenue has been consistently increasing from around £170m in 2009 to over £200m today, and external debt has decreased significantly to less than £50m.
“With a hugely supportive ownership group, we have taken a measured approach to bring back financial stability to this great club by ensuring it is properly structured on and off the pitch.”
For trading until 31 May 2013, the club made a loss after tax of £49.8m.