Yahoo anticipates another 15 per cent drop in revenues to $3.5bn in 2016

William Turvill
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A hedge fund investor last month said Yahoo's board had "failed to deliver results" (Source: Getty)

Yahoo is anticipating another 15 per cent drop in revenues this year.

The web portal reported profits of $4.4bn (£3.1bn) in 2014, $4.1bn last year and is expecting this figure to drop to $3.5bn in 2016.

Read more: Hedge fund wants to overhaul Yahoo's board

The figures were first reported by Re/Code, which quoted them from a “book” given by bankers to prospective buyers.

Earnings before depreciation, taxes and amortisation are forecast to drop to $750m this year, down from $1.4bn in 2014.

Read more: Yahoo considers selling up to $3bn non-core assets

In addition, Re/Code reports that Yahoo expects its number of employees to fall from 12,500 in 2014 and 10,500 in 2015 to around 9,000.

Last month, one of Yahoo's investors, Starboard Value LP, nominated nine directors to overhaul its board.

In a letter to shareholders, the hedge fund said the current board had “failed to deliver results” and significant board changes were needed to “hold management accountable”.

Also in March, eMarketer forecast Yahoo's worldwide net digital ad revenues to fall 13.9 per cent to $2.83bn this year. This compared with a nine per cent growth forecast for Google and 31 per cent for Facebook.

Yahoo has been asked for comment.

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