The Abbey Theatre last year swung back into profit after cutting costs by €2 million, new figures show. The theatre recorded a profit last year of €718,130, 12 months after posting a loss of €1.4 million in 2012.

At the start of this year, the theatre was budgeting to record a modest €42,000 loss for 2014. However, better than anticipated box office receipts – helped by successful productions including the sell-out Our Few and Evil Days – mean the theatre is now projecting to record a profit this year.

Abbey Theatre financial director Declan Cantwell said yesterday: "It has been a great year for us, both from a box office and artistic point of view. 2014 has been very, very successful and the good news is that with the surpluses from last year and this year, we will be able to do more in the coming years."

The development comes against the background of cuts to Arts Council funding from €10 million in 2008 to €5.8 million in 2016.

The theatre's director, Fiach Mac Conghail, said the Abbey "like all arts organisations had to innovate in 2013 in order to weather severe funding cuts".

The new accounts show that the theatre cut its production expenses by over €1.2 million last year from €5.22m to €4m.

Last year 100,015 people paid to see productions at the Abbey and Peacock stages, a figure that has already been surpassed with 106,000 patrons so far this year.