UPDATE 2-Mediaset profit tops view; Nov ad sales flat

* 9-month net profit 184.2 mln euros

* Q4 ad revenue could fall 2-2.5 percent - exec

* 9-month advertising revenue down 10.8 percent

* Shares close up 0.38 percent before results (Adds conference call comments)

MILAN, Nov 10 (Reuters) - Italian broadcaster Mediaset (MS.MI) reported a smaller-than-expected fall in nine-month net profit and said the decline in Italian advertising will narrow in the fourth quarter.

The mainly free-to-air TV broadcaster, owned by Prime Minister Silvio Berlusconi, posted a net profit of 184.2 million euros ($275.9 million), down 48 percent but topping analysts' expectations for 171 million euros.

Mediaset, which faces increasing competition from Rupert Murdoch's News Corp (NWSA.O) as broadcasting technology evolves, said Italy nine-month advertising revenue fell 10.8 percent. It said results were hit by the global recession.

"For the time being, November (advertising) is flat. We are confident December will confirm the same trend. And being conservative, the quarter could be down around 2 percent to 2.5 percent," Publitalia Managing Director Luigi Colombo told a conference call.

The company said it still expects 2009 operating and consolidated net profit to be down markedly from 2008.