NEW YORK (Bloomberg) — News Corp., owner of the Twentieth Century Fox film studio, reported fiscal third-quarter profits that beat analysts' estimates on ticket sales from the 3-D blockbuster 'Avatar' and improving cable network revenue.

Net income fell to $839 million, or 32 cents a share, from $2.73 billion, or $1.04, a year earlier, when News Corp. had a gain from asset sales and a tax benefit, the New York-based company said yesterday in a statement. Analysts expected 23 cents, the average of 14 estimates compiled by Bloomberg.

'Avata', James Cameron's 3-D science-fiction adventure, produced the bulk of its theatrical revenue in the quarter, driving News Corp.'s film profit en route to becoming the top-grossing movie of all time. News Corp. also benefited from rising affiliate fees for its cable networks and improving local and cable television advertising sales.

Revenue rose 19 percent to $8.79 billion, also topping estimates. Operating income increased 55 percent to $1.25 billion in the quarter ended March 31.

News Corp., the owner of Fox television and the Wall Street Journal, fell 64 cents, or four percent, to $15.40 yesterday afternoon in Nasdaq Stock Market trading. The shares have risen 12 percent this year.

News Corp. joins a growing list of media companies reporting improving cable TV ad sales heading into the so-called upfronts, when networks sell commercials in advance of the next television season.

Discovery Communications Inc. said last week ad revenue climbed 44 percent outside the US and nine percent domestically at its cable channels last quarter. Viacom Inc., owner of Comedy Central, said there's an "upswing" in ad markets and expects a "happier" ad sales pre-season.

'Avata'" has taken in $2.72 billion in worldwide box- office receipts since its December 18 release, according to researcher Box Office Mojo. News Corp. began selling the film on Blu-ray and DVon April 22 in the US and Canada.

News Corp.'s Wall Street Journal sparked a turf waron April 26 when it introduced a local New York section to lure readers and advertisers from the New York Times.

The Dow Jones division, which includes the Journal, sued Briefing.com for copyright infringement last month over unauthorized use of its articles and headlines. Chairman and CEO Rupert Murdoch is battling online news aggregators that provide free access to subscription material.

Excluding some items, profit rose from a year ago.

In the year-earlier quarter, the company had earnings of 16 cents a share, excluding the tax benefit, a gain from the partial sale of its stake in NDS Group, and restructuring costs in units including newspapers and book publishing.