UPDATE 1-Valassis posts Q3 profit, ups FY profit view

* Q3 shr $0.28 vs est $0.30

* Q3 rev $544.1 mln vs est $540.3 mln

* Raises FY profit, EBITDA outlook

* Shares up 14 percent

Oct 29 (Reuters) - Valassis Communications Inc (VCI.N), a distributor of newspaper inserts, swung to a third-quarter profit, helped by lower expenses, and raised its full-year profit outlook, sending its shares up 14 percent.

The company earned $13.8 million, or 28 cents a share, for the three months ended Sept. 30, compared with a loss of $5.2 million, or 11 cents a share, a year ago.

Revenue fell about 4 percent to $544.1 million.

Operating income almost tripled in the quarter, while total costs declined 9 percent.

Analysts on average were expecting earnings of 30 cents a share, on revenue of $540.3 million, according to Thomson Reuters I/B/E/S.

The newspaper coupon company now expects full-year net earnings of $64.8 million to $71 million, up from its prior outlook of $62.4 million.

Valassis also raised its full-year adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) view to between $255 million and $265 million, compared with its earlier view of $245.0 million.

Shares of the Livonia, Michigan-based company were trading up $2.37 at $19.24 in early trade on the New York Stock Exchange. (Reporting by Sudipto Ganguly in Bangalore; Editing by Himani Sarkar)