Playwith Korea Q1 2026: Operating Loss Narrows, Net Profit Achieved Despite Sharp Revenue Decline

[Revenue plunge] Q1 2026 revenue KRW 3.7B, down 51% YoY (KRW 7.5B).
[Operating loss narrowed] Operating loss KRW 1.8B, improved from KRW 2.4B YoY.
[Net profit turnaround] Net profit KRW 0.6B (vs. net loss KRW 0.9B YoY), driven by reversal of bad debt provisions (KRW 2.4B).
[Financial structure] Cash & equivalents KRW 4.5B, total borrowings KRW 3.7B, net cash position maintained.
[Bad debt provisions] Allowance ratio on receivables and loans remains high at 87.7% (KRW 36.1B).
[Related party receivables] Receivables from related parties KRW 25.9B, with allowances of KRW 22.3B.
[Early redemption of CB] KRW 1.79B of 16th convertible bonds early redeemed, reducing derivative liabilities.
[Related party share purchase] Related parties bought 113,111 shares (KRW 0.32B) on market.
[Dividends] No dividends due to accumulated deficits.
[Governance]Audit committee restructured with two new outside directors.