Times Newspapers reports first operating profit in 13 years

Is it a vindication of the internet paywall model? Times Newspapers, publisher of the The Times and Sunday Times, has today announced an operating profit for the first time since 2001 as digital subscriptions continue to rise.

The £1.7m operating profit for the year ending 30 June 2014 is an enormous turnaround since reporting a £72m loss before the introduction of a paywall four years ago. In 2013 the titles reported a loss of £5.9m.

A rise in subscriptions – which cost £6 per week – are partly to thank to for the improved performance. The Times has 152,000 digital-only subscribers, up 8%, and the Sunday Times has 154,000, up 12%, and represents more than half of all operating profits.

A mixture of advertising and third-party deals for subscribers – such as tickets to cultural events – also helped the publisher turn its business around.

Earlier this year, chief executive of News UK, Mike Darcey, who is in charge of The Times, The Sunday Times and The Sun, said many people thought installing paywalls would damage the business.

However, citing a report by Enders Analysis, Darcey said the approach at the Times and Sunday Times is now regarded as a “sensible and sustainable strategy” and that other newsbrands were treading on thin ice with current business models.