Oct. 31 (Bloomberg) -- IAC/InterActiveCorp, the Internet and media company assembled by Barry Diller, said third-quarter profit fell less than analysts anticipated as overseas customers purchased more tickets through Ticketmaster.

Net income dropped to $71.8 million, or 24 cents a share, from $74.9 million, or 24 cents, a year earlier, the New York- based company said today in a statement. Excluding some items, profit beat estimates by 2 cents.

Sales at Ticketmaster rose 13 percent as customers in the U.K. and Australia went to more soccer matches and concerts. Diller has relied on revenue from ticket sales and his Ask.com search tool to counter sluggish performance at the LendingTree mortgage unit and HSN home-shopping channel as consumers face higher housing, food and fuel costs.

``Diller is like Buffett with Berkshire Hathaway: You look at the track record and you ask, `Has he created value?''' said Jean-Luc Nouzille, a portfolio manager with Bristlecone Value Partners LLC in Los Angeles, which owns shares of IAC. ``We think he has. We don't think he will get them all right but we trust him to make the decision.''

Revenue rose 7.4 percent to $1.52 billion, IAC said, helped by gains from the Match.com personal division and sales of entertainment-coupon books.

Income adjusted for taxes and other items rose to 37 cents a share. Fourteen analysts surveyed by Bloomberg estimated average profit of 35 cents.

IAC rose $1.07, or 3.8 percent, to $29.46 at 4 p.m. New York time in Nasdaq Stock Market composite trading. The shares have fallen 21 percent this year.

LendingTree

LendingTree revenue fell 41 percent to $63 million because of the deteriorating mortgage market and a decline in real- estate values, IAC said. The unit posted an operating loss of $5.6 million and will have a loss in the fourth quarter, the company said.

``It will be a very steep mountain to climb to get back to any growth'' at LendingTree, IAC Chief Financial Officer Tom McInerney said on a conference call with analysts and investors.

Revenue at IAC's retailing division, which includes the HSN home shopping channel, climbed 2 percent to $700.4 million, while operating profit fell 26 percent to $37.4 million. Average spending among frequent customers rose, though the number of total active shoppers was unchanged.

Operating profit at Ticketmaster rose 7 percent on sales of $301.3 million. The division told employees in an internal memo two months ago that it was likely to lose its contract to sell tickets for Live Nation Inc., the largest concert promoter in the world. IAC President Douglas Lebda said the company would have other revenue sources to replace lost income from Live Nation.

Ask.com helped the media and advertising unit post a $15.4 million operating profit, compared with a year-earlier loss. Division revenue climbed 40 percent.

To contact the reporter on this story: Oliver Staley in New York at ostaley@bloomberg.net.

Last Updated: October 31, 2007 16:19 EDT