Group turnover in the year to June 30 jumped by £21.7 million to £115.3 million as fans snapped up merchandise and capacity at Stamford Bridge increased.
The hotels and night club division also performed well and moved into the black on an operating level.
But the players' wages bill hit Chelsea Village, the London Stock Exchange-listed company that owns the west London club, hard. In addition, losses on player trading came in at £16.2 million - compared to losses of just £1.2 million last year - and group pre-tax losses widened from £11.1 million to £16.5 million.
Chairman Ken Bates said: "In common with the rest of the football industry, the biggest problems facing the group are players' wages and transfer fees.
“Past extravagances are being reversed with new reporting systems and more transparency in decision making, but it will take time for contractual obligations to unwind.”
However, Mr Bates added that once this had happened, Chelsea Village could look forward to “solid growth and profitability.”