IT House news on May 20, according to The Paper, due to changes in the external market environment and adjustments to the company’s business, Tencent internally issued a “Notice on the Organizational Structure Adjustment of the OVBU Sports Business Department”, combined with Tencent’s overall organization Decisions to optimize work and make adjustments to Tencent’s sports business, including:
1. Cancel the basketball business center/basketball operation group;
2. Cancel the football business center/football operation group;
3. Cancel the comprehensive business and large project center/comprehensive large project operation group;
4. Cancel the Marketing Center;
5. Cancel the product center/value-added product group;
6. Cancel the Platform R&D Center/Recommendation Platform Group and Platform R&D Center/Portrait and Algorithm Group.
IT Home has learned that OVBU refers to the Online Video Business Unit, which belongs to the Tencent Platform and Content Business Group (PCG). Tencent has not yet publicly responded to the matter.
In addition to the above-mentioned six major businesses, the Tencent Sports copyright operation group, sports brokerage, event live broadcast group, program group and other business groups with monetization ability have nothing to do.
On May 18 this year, Tencent Holdings released its first quarter results for fiscal 2022. Tencent’s first-quarter net profit was 23.41 billion yuan, lower than the market’s expected 29.31 billion yuan, down 51% year-on-year and 75% month-on-month.
It is reported that Tencent said its online advertising business revenue fell 16% to 18 billion yuan. Among them, social and other advertising revenue decreased by 15% to 15.7 billion yuan, mainly reflecting the decrease in the company’s advertising resources (especially mobile advertising alliance) revenue; media advertising revenue decreased by 27% to 2.3 billion yuan, reflecting Tencent Video and Tencent News services. Advertising revenue decreased.
Therefore, Ma Huateng, chairman and CEO of Tencent, said: “We have implemented cost control measures and adjusted some non-core businesses, which will help us achieve a more optimized cost structure in the future.”