FOR THE second successive year, Melbourne has reported a net operating profit, this time in excess of half a million dollars.

Following a profit of $160,000 in 2014, the Demons have reported a profit of $562,000 for the financial year ending October 31.

The total revenue of the club grew by $2.4m, with $1.7m reinvested into the football department, split between total player payments and player development.

This included the AFL's entire $1.2m in distribution funding and equalization.

The club said its overall profit was achieved through improved commercial activities, the performance of its gaming venues and tight cost control measures.

"We are confident that we are well positioned with our playing talent and list management, but we believe it is important to continue our investment in the football department, particularly in player development," CEO Peter Jackson said.

Last week, Jackson signed a new deal to remain at the club until the end of 2017.