Snapchat's parent company reports £1.7bn loss in first earnings report

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Snapchat's parent company Snap Inc has reported a net loss of more than 2.2 billion dollars (£1.7 billion) in the company's first ever earnings report.

The loss was higher than some analysts predicted, and follows a steady drop in the company's share price amid pressure from rivals, including Facebook.

Snapchat floated on the US stock market in March and in early trading saw its valuation rise above £25 billion.

Share prices and the company's value are likely to drop in the wake of the results.

However, the photo sharing app was able to report an increase in the number of daily active users - who grew from 158 million at the start of the year to 166 million.

It is also an increase of 36% on the 122 million daily users the app had this time last year.

Snapchat has come under intense pressure from Facebook in recent months, with the social media giant adding several Snapchat-like features to its own network, which includes Messenger, Instagram and WhatsApp.

Confidence in Snapchat was also dented last month when Instagram revealed its Stories feature - similar to Snapchat's Story - had surpassed 200 million daily users, well ahead of Snapchat.

Earlier this week, Snapchat announced it would allow users to send images and video without time limits for the first time, expanding one of the app's signature features in what is seen as an attempted fightback against Facebook.