The New York Times Co. announced its quarterly profit is down on an ad revenue slump, and confirmed its desire to sell its stake in the Boston Red Sox, Reuters reported.

The Times revealed a US$625 million shortfall in its pension obligations, and the ad sales are expected to deteriorate, the company said. However, shares went up 7.5 percent after the publisher confirmed the planned sale of the Red Sox stake and outperforming cost cutting.

"They did it both ways: higher-than-expected ad revenues and lower costs than estimated, and I guess the news that they're going to sell the Red Sox takes some pressure off concerns about their financial picture," according to Benchmark Co analyst Ed Atorino, Reuters reported.

As of the end of the quarter, the publisher had $57 million in cash and $1.1 billion in debt. A $400 million credit facility will expire in May.

According to analysts' estimates, its 17.75 percent interest in New England Sports Ventures, the Red Sox holding company, is worth about $200 million. The deal to sell its stake in its headquarters building is also near.

The publisher is also borrowing $250 million from Mexican millionaire Carlos Slim.

The Times will use what it gets from these deals to pay down debt, Reuters reported.