Bloomberg News

Tencent Revamps Businesses to Expand in Mobile, Grow Overseas

May 17, 2012

Ma ''Pony'' Huateng, chairman and chief executive officer of Tencent Holdings Ltd., speaks during the TechCrunch Disrupt Beijing conference in Beijing, China. Photographer: Keith Bedford/Bloomberg

Ma ''Pony'' Huateng, chairman and chief executive officer of Tencent Holdings Ltd., speaks during the TechCrunch Disrupt Beijing conference in Beijing, China. Photographer: Keith Bedford/Bloomberg

Tencent Holdings Ltd. (700), China’s biggest Internet company, is reorganizing its business units to expand services for smartphone and social-networking users and accelerate growth of its online games operations overseas.

Operations will be split into six businesses including social networks and mobile Internet, the Shenzhen, China-based company said in an e-mailed statement today. Tencent also plans to set up an e-commerce subsidiary, it said.

Chief Executive Officer Pony Ma is diversifying Tencent from a reliance on online games, which account for more than half the revenue. Tencent faces competition from Chinese Internet rivals including Baidu Inc. (BIDU:US) and Alibaba Group Holding Ltd. in winning users of smartphones such as Apple Inc.’s iPhone. Also, the company aims to expand its social networking sites as Facebook Inc.’s service is restricted in China.

One of the aims of the business revamp is to “embrace the expanding global online games market,” Ma said in the statement.

Tencent will also form divisions for interactive entertainment, online media, corporate development and technology and engineering, it said.

Tencent rose 1.3 percent to HK$227.20 as of 11:04 a.m. in Hong Kong trading. The stock has gained 46 percent this year, the best performance in the city’s benchmark Hang Seng Index.

Profit rose to a record 2.95 billion yuan ($466 million) in the three months ended March 31, helped by rising online game sales in China and South Korea, the company said in a May 16 Hong Kong stock exchange filing.

To contact the reporter on this story: Mark Lee in Hong Kong at wlee37@bloomberg.net

To contact the editor responsible for this story: Michael Tighe at mtighe4@bloomberg.net


Silicon Valley State of Mind
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

Companies Mentioned

  • BIDU
    (Baidu Inc)
    • $218.21 USD
    • -1.03
    • -0.47%
Market data is delayed at least 15 minutes.
 
blog comments powered by Disqus