April 6, 2016 / 7:32 PM / in 2 years

Yahoo expects 2016 revenue to drop about 15 percent: Re/code

(Reuters) - Yahoo Inc YHOO.O expects a sharp decline in both its revenue and earnings this year compared with 2015, with revenue seen falling nearly 15 percent and earnings over 20 percent, Re/code reported on Wednesday, citing a Yahoo document.

A man walks past a Yahoo logo during the Mobile World Congress in Barcelona, Spain February 24, 2016. REUTERS/Albert Gea

The financial situation at the Internet company is becoming “increasingly dire,” Recode said, citing pages from the “book” of disclosure documents that Yahoo bankers have given out to prospective buyers.

A Yahoo spokesperson declined comment on the report.

Yahoo also expects its employee count to fall to about 9,000 at the end of 2016, from 10,500 in 2015, but stock-based compensation remains steady, the technology news website said.

The company expects 2016 revenue, backing out traffic acquisition costs, of $3.5 billion in 2016 and earnings before depreciation, taxes and amortization of $750 million, Re/code said.

Reporting by Rishika Sadam in Bengaluru; Editing by Leslie Adler

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