Wednesday, January 28, 2009

NY Times profit falls, eyes Red Sox stake sale

The New York Times Co (NYT.N) reported a lower quarterly profit because of a decline in advertising revenue, and confirmed its desire to sell its stake in the Boston Red Sox baseball team.

The Times said ad sales will deteriorate further, and also revealed a $625 million shortfall in its pension obligations. But shares rose 7.5 percent on confirmation of the planned sale of the Red Sox stake and better-than-expected 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," said Benchmark Co analyst Ed Atorino.

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