XXL.EE

COMMENTARY TO FINANCIAL RESULTS



COMMENTARY TO UNAUDITED RESULTS, 2000



AS XXL.EE consolidated and unaudited net sales in year 2000 totaled 

EEK 8.4 million; the company posted EEK 10.7 million net loss. The 

parent company’s operating loss was EEK 5.5 million, of which 

expensing of claims arising from the company’s earlier operations 

accounted for EEK 3.4 million, and expensing of goodwill of 

subsidiary OÜ Internetivärav (acquired in 1999) accounted for 

EEK 2.1 million. In addition the company had EEK 2.4 million loss 

from the launch and expansion of foreign subsidiaries, which will 

be carried by the concern. The parent company’s profit from normal 

activities was EEK 0.8 million. Profit from sale of affiliated 

company AS Linnaportaal amounted to EEK 1.2 million.



As at 31.12.2000 the consolidated and unaudited balance sheet size 

of AS XXL.EE was EEK 11.9 million, which is EEK 15.4 million less 

than in the beginning of the financial year. The balance sheet size 

dropped due to sale of subsidiary and conservative provisioning of 

parent company’s claims. Among the liabilities from XXL.EE’s previous 

activities, the balance sheet contains only an EEK 7.0 million credit 

line at Merita Bank (Nordea).



The group’s liabilities decreased by EEK 19.7 million by the end 

of the accounting period. The proceeds from the share issue were 

used to pay off the debt obligations from XXL.EE’s previous 

activities; the company also reached an agreement with creditors 

for partial cancellation of its debt obligations. 



At the end of the financial year the company’ equity capital was 

EEK –0.7 (EEK –4.9 mln in the beginning of the financial year).



During the year XXL.EE raised its holding in subsidiary XXL Riga 

Digital by 25% and acquired full ownership in the company by the 

end of the year. XXL.EE also acquired 80% shareholding in 

Lithuanian digital media services provider UAB XXL 101 Digital 

Communications, and all shares in Lithuanian UAB City Site, currently 

shown on the balance sheet as short-term investment.





Arho Anttila

CEO

+372 6 507 500