Snapchat battles huge loss

THE parent behind mobile video messaging app Snapchat has suffered a deep first loss in its first quarter as a public company as it battles stiff competition from copycat platforms.

Listed on the New York Stock Exchange, Snap Inc reported a $US2.21 billion ($3 billion) loss for the three months to March in a filing overnight on Wednesday.

The result was far worse than the $US104.6 million loss posted a year ago, highlighting the challenge it faces in establishing a profitable business.

It is competing against social media giants such as Facebook and Twitter.

Shares in Snap fell 22 per cent to $US18.02 in the wake of the result, its lowest price since it floated at $US17 a share in March.

Facebook’s Instagram – a key competitor to Snap – has been gobbling up users.

It added 100 million monthly users in the past four months.