Melbourne has announced its third-straight profit, although it is down on what the AFL club had predicted.

Melbourne will post a $790,797 profit at its December 20 annual general meeting and will continue to reduce its debt.

The club said in a statement that its debt is down from $5.5 million three years ago to $2.1 million.

Melbourne forecast a repeat of its $1 million profit last year, but factors such as player injury payments and match day attendances went against the club.

"We made finals for the third consecutive year and are again re-investing in the football department after years of cost-cutting and allowing the gap against other clubs to become unsustainable," said chairman Paul Gardner.

"While we operate in a difficult financial and competitive environment we are pleased to again post a profit and look forward to further improvement in 2007."