The Gunners reported group turnover for the year ending 31 May as £255.7m, down from £379.9m in 2010, while profit was also reduced from £56m to £14.8m.
Chief executive Ivan Gazidis commented:
"We are very secure - it's a good set of results again.
"This is a very solid, very healthy set of results and it gives us a good platform to move forward from."
Arsenal are probably in a better position than the accounts suggest as they do not include the £30m gained from the sale of Cesc Fabregas, the £24m received for Samir Nasri or the £7m paid by Manchester City for Gael Clichy
A reduced income from property sales at the Highbury redevelopment and increase in player wages have played their part in the drops, had the sales income generated in the summer been in last year's results the position would have been better than it looks.
Even so, compared with some of their debt ridden rivals Arsenal have a solid foundation, and with knock-out Champions League football secured, financially at least the Gunners look set for another good year - despite their current league position. Fans may be unhappy at current form, and the defeat at Tottenham on sunday will not go down well - but results on the field are transient and a couple of wins will rectify soom of the gloom.