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Telenor: Third quarter 2013: Growing profitability



              Telenor: Third quarter 2013: Growing profitability

(Fornebu, 31 October 2013) In the third quarter of 2013, Telenor Group
reported revenues of NOK 26.0 billion, representing an organic revenue growth
of 1%. EBITDA before other items was NOK 9.6 billion, EBITDA margin was 37%,
and operating cash flow was NOK 5.9 billion. Reported net income of NOK 3.9
billion includes currency losses of NOK 502 million, mainly non-cash.

"Telenor Group's performance this quarter is proof of a sound business with
solid earnings and margins. A record high EBITDA of NOK 9.6 billion, as well
as an operating cash flow margin of 23 per cent, demonstrates our ability to
create value. Our effort to capture growth remains a top priority, while we
will continue to drive efficiency improvements,'' said Jon Fredrik Baksaas,
President and CEO of Telenor Group.

Provide Internet access in Asia
"It is paramount for Telenor to provide Internet access with good connectivity
and services for all. Only around one out of four of Telenor's customers in
Asia currently have access to the Internet, representing a vast potential for
our future growth. During this quarter, subscription and traffic revenues in
Asia increased by 9%, continuing its healthy trend. In Thailand and Malaysia,
where the Internet is already the main growth driver, we added 240,000 and
279,000 customers, respectively. Earlier this month Grameenphone launched 3G
services to customers in central parts of the city of Dhaka, marking the start
of a nationwide network roll-out,'' said Baksaas.

"In Thailand, the new 2.1 GHz network was launched in July. The migration of
customers is progressing according to plan and dtac aims to have a minimum of
10 million customers on the licenced network by the end of the year. In the
years to come, we expect significant cost savings and margin improvement from
the transition to the licence regime,'' said Baksaas.

Mobile data in Nordics
"During the quarter, we saw continued improvement in Sweden on the back of
solid execution and implementation of data centric tariffs. The revenue
development in Norway is weaker than expected. In order to secure healthy
return on our high network investments, we need to further optimise data
centric offers to stimulate demand for mobile data and at the same time
deliver the required revenue growth. As a consequence of continued challenging
market conditions in Denmark, we are now embarking upon an ambitious
transformation programme which will run through 2014," said Baksaas.

"Globul in Bulgaria was included in the Telenor Group as of August. In
Myanmar, we are expecting to finalise the licence later this year with the aim
of launching services in mid-2014," said Baksaas.

Outlook
"Based on the performance in the first three quarters and the outlook for the
rest of the year, we revise the outlook for organic revenue growth to 1-2% and
capex to sales to 13-14%. We maintain our guidance of around 34% EBITDA
margin," said Baksaas.
 Key figures
The table below contains key figures for the third quarter of 2013, compared
to the previous year.

                                         3Q          3Q             Year
(NOK in millions except earnings per    2013   2012 (Restated) 2012 (Restated)
share)
Revenues                                25 953          25 253         101 718
EBITDA before other income and
expenses                                 9 619           8 820          32 848
EBITDA margin before other income and
expenses (%)                              37.1            34.9            32.3
Adjusted operating profit[1]             6 281           5 390          18 446
Adjusted operating profit/Revenues (%)    24.2            21.3            18.1
Profit after taxes and non-controlling
interests                                3 917           3 650           8 809
Earnings per share from total
operations, basic, in NOK                 2.59            2.34            5.63
Capex                                    5 589           5 499          21 511
Capex excl. licences and spectrum        3 730           3 336          12 299
Capex excl. licences and
spectrum/Revenues (%)                     14.4            13.2            12.1
Operating cash flow  [2]                 5 889           5 484          20 549
Net interest-bearing liabilities [3]    37 752          28 597          33 082

For more information please refer to the quarterly report at
http://www.telenor.com/investors/reports/2013/telenors-results-for-the-3rd-quarter-2013/

Media Contact:
Meera Bhatia, Communications Manager, Tel: +4746844959, E-mail:
meera.bhatia@telenor.com
To the editorial offices:
Press and analyst conference
In connection with the publication of the financial results, a press and
analyst conference will be held on Thursday 31 October 2013 at 09:00 hrs
Norwegian time/CET. The presentation will be held in Auditorium A, Telenor
Expo Visitors' Centre, at the Telenor Headquarters at Fornebu. President and
CEO Jon Fredrik Baksaas and CFO Richard Olav Aa will present the results. All
presentations will be given in English.
Internet and mobile broadcast
The press and analyst conference will be broadcast live over the Internet, and
a recorded version will be made available on
http://www.telenor.com/investors/reports/2013/telenors-results-for-the-3rd-quarter-2013/
. During the live transmission, written questions may be submitted via the
Internet. The conference will also be available live, and in a recorded
version, on mobile phones - for access, SMS expo to 2440 or +472440 from
abroad.
Conference call and Q&A
The press and analyst conference will also be available as a conference call.
This service also allows participants to ask questions at a concluding Q&A
session, which will be held immediately after the presentation and a brief Q&A
session in the auditorium. Please register well in advance on +(47) 23162729.
Materials
English language versions of the full quarterly report and all presentations
used during the press and analyst conference will be made available at
http://www.telenor.com/investors/reports/2013/telenors-results-for-the-3rd-quarter-2013/

-------------------------

[1]Adjusted operating profit is defined as Operating profit less other income
and expenses and impairment losses.
[2]Operating cash flow is defined as EBITDA before other income and expenses -
Capex, excluding licences and spectrum
[3]Net interest-bearing liabilities is defined as interest-bearing debt
excluding net present value of licence liabilities. The figures for 3Q 2013
and 3Q 2012 are accumulated for the first nine months of the year.

------------------------------------------------------------------------------

This announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
the
information contained therein.

Source: Telenor via Thomson Reuters ONE
HUG#1739371
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