After a Record Quarter, China’s Tencent Reorganizes Business Structure

There’s been talk of this happening for a few days now, but we finally received official word from Tencent (HKG:0700) today to confirm that it will be reorganizing its business into six business groups. These will be based on its existing business units but correspond to different internet sectors. They will be as follows.

• Corporate Development Group (CDG)
• Interactive Entertainment Group (IEG)
• Mobile Internet Group (MIG)
• Online Media Group (OMG) [1]
• Social Network Group (SNG)
• Technology and Engineering Group (TEG)

The company’s CEO, Pony Ma [2] says that he hopes that this reshuffling will give Tencent the ability to better respond to new opportunities in the internet world. He outlines what he sees as the company’s main targets:

Our goals are: to strengthen our social networking services, to embrace the expanding global online games market, to extend our presence in mobile Internet, to integrate our online media platforms, to nurture our search business, to build out our e-Commerce platforms, and to enhance our capabilities to incubate new businesses.

Tencent recently announced its first quarter results for 2012, reporting a record quarterly profit of 2.95 billion RMB (about $466 million). It’s QQ instant messaging platform has grown to a staggering 752 million users, which is up 12 percent on the same time in the previous year. It Qzone social platform had 576.7 million user accounts, up 9.7 percent on the year before.