According to figures filed at Companies House, turnover for both national newspaper brands tumbled by £60m following drops in ad revenue, to £385.5m.
Pre-tax profit dropped 24% to £8m during the period.
A company statement said: "The level of turnover for the year based on advertising revenue is below levels in the previous year – the current economic climate has impacted advertising spending by clients and has resulted in lower advertising revenues, in common with other publishers and other businesses with advertising-dependent models."
Times Newspaper's expects the general level of activity to "continue for the foreseeable future".
There were improvements meanwhile, in circulation revenues following The Times raising its cover price from 90p to £1 during the period.
Once tax and exceptional items, which include reorganisation costs at both papers, the division lost £87.9m for the financial year.
However, the completion of the company's so-called "press programme" also allowed the early launch of both The Times and The Sunday Times as full colour newspapers.
The Times was re-launched on 2 June 2008 with a new book structure and a fresh look and feel to take advantage of the new presses.
The Sunday Times was re-launched with a new full colour format on 6 July 2008, providing a cleaner look with a new font, improved navigation and a clearer visual identity for each section.
The re-launches of both The Times and The Sunday Times were supported by significant marketing campaigns and editorial budgets were also maintained during the severe economic downturn, while rivals were making cutbacks.
The company reports that following a review of the business (with exceptional reorganisation costs of £13,600,000 being recharged to the company), advertising sales and marketing activity is now more integrated across The Times and The Sunday Times, as well as across other UK newspaper publications held by Newscorp Investments.