Performers from more than 50 countries attend the eisteddfod

Audiences rose to 45,000, up 17% on the previous year, with the box office cashing �120,000 more than in 2005.

Takings rose to �530,000, netting the charity an extra �90,000. Around half its income is from the box office.

In 2001, the future of the music eisteddfod was in doubt when it ran up deficits totalling �500,000.

The July event is a major fixture in the music calendar, with performers from 51 countries.

The festival took on professional managers in the wake of its earlier financial crisis.

Jose Carreras and Joan Baez are headlining the 2007 event

The 2006 event's turnover was �1.18m, including ticket sales, sponsorship and performers fees. Arts council and local authority subsidies accounted for 18% of its income.

The surplus, up �24,000 on the previous year, did not involve windfalls, donations or legacies.

Chief executive Gwyn L Williams said the latest figures had erased forever the "black cloud memories" of 2000 and 2001.

'Reserves'

He said: "It's a bit scary having 50% of your income from the box office, but I quite value that challenge.

"The success is largely down to what we do with our audiences, we're not as dependant on public subsidies."

Mr Williams said the new surplus had put reserves at around �450,000, approaching the level before the event went into deficits.

He added: "The Charity Commission requires us to have in the bank half the cost of putting on the Eisteddfod, so we're looking for reserves of around �550,000."