The 2011-12 Premier League champions posted a loss of almost £100 million in their title winning season, but that figure fell to £51.6m for 2012-13.
Turnover at the Etihad Stadium was up to £271m, taking it over the £250m mark for the first time in the club's history.
City also confirmed that they are "for the first time, operating with zero financial debt having paid off all remaining borrowings".
Those figures make City the sixth-richest club in world football, according to a study by financial service provider Deloitte.
Chief executive Ferran Soriano said: "Financially, the club continues to improve.
"Growing revenues and controlled expenses are bringing the club to breakeven in the immediate future and profitability thereafter."
City have made the UEFA Champions League knockout phase for the first time this season under Manuel Pellegrini, who has also guided the club into next month's League Cup final with Sunderland.
There are also plans afoot to expand the Etihad Stadium's capacity to 54,000 in the coming years, with a further 6,000 seats to be added.
