SM Culture & Contents Q1 2026 Sales Up but Operating Loss Continues

Q1 2026 consolidated sales KRW 21.48B (up 21.4% YoY from KRW 17.69B)
Operating loss KRW 2.24B (narrowed from KRW 2.94B loss in prior year Q1)
Net loss KRW 1.23B (narrowed from KRW 1.77B loss)
Total assets KRW 190.6B, liabilities KRW 110.1B, equity KRW 80.5B
Cash & equivalents KRW 33.0B (down from KRW 54.5B at year-end)
Consolidated subsidiary: Haneuleul Damda (cosmetics, 60% stake, Q1 net loss KRW 0.44B)
Related party transactions: SM Entertainment, SK Telecom, Kakao, etc.
Contingent liabilities: performance guarantees KRW 10.76B, pledged deposits KRW 8.37B, Hana Bank agreement KRW 5.05B
Joint liability from demerger (Ullim Entertainment, SK Planet)
No shareholder returns: no dividends, no share buybacks/cancellations