WeChat, the China-based app that offers instant messaging and other services, has lost money for four years and it’s about to lose more, according an analyst report released Monday.
The report said wechat lost about $30.6 billion in the first half of this year, or about 2 percent of its revenue.
The loss was primarily due to an increase in advertising, the report said.
“WeChat’s growth is driven by the rapid growth of its messaging platform, including the development of new apps, its growth in its user base, and the growth of other companies such as Baidu and Tencent, which has also grown rapidly,” the report from Jefferies analysts says.
WeChat lost $27 billion in revenue in the second half of last year, a 4.3 percent increase from the same period last year.
It said the company is looking to improve its growth prospects, including reducing costs.
The WeChat app was launched in China in November 2009.
Its user base grew from a total of more than 30 million users to more than 150 million in May this year.