The publisher of the Guardian and Observer newspapers announced on Tuesday that it had slashed losses by over a third over the last financial year, thanks in part to a growing number of membership subscriptions and one off contributions form readers.

The Guardian Media Group (GMG) said it had reduced losses before tax to £200,000 in the year to 2 April from £173m in the same period a year earlier. Total revenue hit £214m, up 2.4 per cent from the previous year. Digital revenues rose by 15 per cent to £94.1m from £81.9m.

Despite operating at a loss, the group managed to increase its endowment fund to over £1bn, helped by selling off its stake in publishing company Ascential, formerly known as Emap.

Last year the group introduced a three-year plan to cut costs by 20 per cent, in its bid to break even by 2018/19.

Since 2016, the Guardian has added 230,000 new paying members, it said on Tuesday.

In 2014, the paper launched a three-tier membership scheme, offering subscriptions ranging in price from zero to £60 per month.

“Despite the challenging market conditions faced by all news organisations around the world, our three-year strategy is well on track to achieve its financial goals and to secure the future of the Guardian,” the group’s chief executive, David Pemsel, said.