Snapchat powers up to $6.8m profit through the pandemic

Social media network Snapchat is using advertising sales to drive growth, booking a maiden $6.8 million profit as it battles TikTok, Instagram and Facebook for market share.Documents published by the Australian Securities and Investment Commission show Snap Aus, as the local arm is registered, was in the black last year after previously booking a loss of $980,000 in 2019.The social media platform – on which users exchange pictures and messages that then disappear – recorded $78.2 million in revenue for the year that ended 31 December, 2020, on the back of $56 million in advertising sales in Australia.Kathryn Carter, managing director of Snapchat in Australia, said the pandemic had boosted the social media platform’s growth. Credit:Louise KennerleySnapchat’s revenue was up from $50.8 million the previous year when it sold $36 million of advertising.The social media platform reported 54 employees in Australia and paid income tax of $2.6 million for the year.Australia is proving a lucrative market for the $US80 billion ($102 million) platform, which made a loss of $US287 million for the first quarter of 2021 globally.Snapchat has around 6 million local users, surpassing rival TikTok, which has around 2.5 million local users.Its users are devoted, with the average Snapchat…
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