The Guardian and the Observer have broken even for the first time in recent history aided by record online traffic, reduced costs and increased financial contributions from readers.

Guardian News & Media recorded an £800,000 operating profit for the 2018-19 financial year – compared with a £57m loss three years previously – ensuring the business is existing on a sustainable basis following the culmination of a turnaround programme put in place following years of substantial losses.

The company said it had 655,000 regular monthly supporters across both print and digital, with a further 300,000 people making one-off contributions in the last year alone.

Katharine Viner, editor-in-chief of the Guardian. Photograph: Linda Nylind/The Guardian

The Guardian has taken the decision to keep its journalism outside a paywall, while asking readers to contribute in order to subsidise its reporting into topics such as Cambridge Analytica, the Windrush scandal, and the Paradise Papers.

Total monthly page views increased over the last three years from 790m in January 2016 to 1.35bn in March 2019.

Katharine Viner, the Guardian News & Media editor-in-chief, said: “In times of extraordinary political and economic upheaval the need for quality, independent reporting and commentary has never been greater. Guardian journalism is flourishing – holding the powerful to account and exploring new ideas.

“Thanks to the support of our readers and the incredible hard work and talent of Guardian staff, we have reached an important financial milestone. We are now in a sustainable position, and better able to deliver on our purpose by producing outstanding journalism that understands and illuminates our times.”

Total revenues at Guardian News & Media grew 3% to £223m a year, at a time when many rival publishers are experiencing substantial declines, with 55% of the company’s income coming from digital activities – a higher proportion than most other British news outlets.

Quick Guide A Guardian timeline Show 1821 In April, a prospectus announces a new paper for Manchester. A month later, on 5 May 1821, John Edward Taylor publishes the first Manchester Guardian as a newspaper in the liberal interest. 1872 Charles Prestwich Scott, a liberal thinker with strong principles, becomes editor of the Guardian - a post he holds for 57 years. 1907 CP Scott buys the Guardian, becoming both owner and editor. 1921 CP Scott writes a leading article to mark the centenary of the paper that becomes recognised around the world as the blueprint for independent journalism and includes the line “Comment is free, but facts are sacred.” 1929 CP Scott retires as editor in favour of his son Ted. 1932​ CP Scott’s death in January is followed swiftly by that of his younger son; Ted Scott is killed in a tragic boating accident in April. William Percival Crozier is appointed as editor. 1936 Ownership of the Manchester Guardian is transferred to the Scott Trust to protect the paper, its independence and the journalistic principles of CP Scott. ​1944 Following WP Crozier’s death, Alfred Powell Wadsworth becomes editor. ​1956 Alastair Hetherington becomes editor following Wadsworth’s death. 1959 On 24 August the newspaper changes its title from the Manchester Guardian to the Guardian, to reflect the growing importance of national and international affairs in the newspaper. 1964 The editor’s office and major editorial departments relocate from Manchester to London. ​1975 Peter Preston is appointed editor.​ 1988 The Guardian has a radical redesign, splitting the newspaper into two sections and introducing a new masthead. 1995 Alan Rusbridger becomes editor. 1999 Guardian Unlimited (GU) network of websites is launched. 2005 The mid-sized Berliner format newspaper launched. It is the UK's first full-colour national newspaper. 2011 A new digital operation, Guardian US, is launched in New York as a hub for Guardian readers in the US. 2013 The Guardian launches Australian digital edition, Guardian Australia. 2015 Katharine Viner is appointed Guardian editor-in-chief. 2018 The Guardian and Observer newspapers launch in a new tabloid format and the website and apps are given a redesign. - Photograph: The Guardian

Print advertising – once the bedrock of all newspaper income - accounts for 8% of the company’s total revenue, although the business remains committed to producing a print newspaper and has 110,000 print subscribers across the Guardian, Observer and Guardian Weekly.

The company has also reduced costs by 20% over the last three years, with expenditure before exceptional items in 2018-19 falling to £222m, aided by a reduction in headcount. The company said revenues at Guardian US and Guardian Australia have increased substantially, with both outlets considered to be financially sustainable.

Preliminary figures showing the company broke even on an EBITDA basis (earnings before interest, tax, depreciation and amortisation) were released by the company on Wednesday, with the full accounts to be published later this year.

David Pemsel. Photograph: Linda Nylind/The Guardian

Guardian News & Media is owned by the wider Guardian Media Group, which in turn is controlled by the not-for-profit Scott Trust, named after the newspaper’s former proprietors.

The Scott Trust endowment, built up through the sale of former assets such as AutoTrader, produces an annual return of between £25m and £30m without depleting the main investment, which it allows to be spent by Guardian Media Group to subsidise ongoing operations.

David Pemsel, the Guardian Media Group chief executive, said this target was reached after reducing annual cash outflows at the wider business from £86m a year in 2016 to £29m.

He said: “Over the last three years we have made a huge amount of progress, and I’m exceptionally proud of how far we’ve come. Achieving these results is testament to the absolute commitment and ingenuity of everyone within the organisation. We are very grateful for the support of our readers, advertisers and partners who believe in the value of high quality media.

“GMG is now a more reader-funded, more digital, more international business. Although the significant turbulence in the global media sector shows no sign of abating any time soon, we have developed a set of core strengths which will help to ensure the Guardian’s ongoing independence and financial sustainability for the long term.”