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2014-05-07

Telenor: A solid start to the year

(Fornebu, 7 May 2014)
In the first quarter of 2014, Telenor Group reported revenues of NOK 26.5
billion, representing an organic revenue growth of 1.5%. EBITDA before other
items was NOK 9.3 billion, the EBITDA margin was 35% and operating cash flow
was NOK 5.6 billion.

"I am pleased to present a solid start to the year. We added 6 million new
mobile subscribers in the first quarter of 2014, the company's best customer
surge in two years. This growth was mainly driven by India, Pakistan and
Bangladesh. The underlying mobile service revenue growth improved to 5
percent in the quarter,'' said Jon Fredrik Baksaas, President and CEO of
Telenor Group.

"In Norway, our growth and efficiency initiatives continue to be a top
priority. We see rising demand for larger data packages, which resulted in
improved mobile revenue growth of more than 3 percent in the quarter.
Competitive pressure and declining revenues from traditional fixed telephony
require us to focus on streamlining our operations and investments. At the
same time, Telenor is implementing a major technology shift with an annual
investment of more than NOK 4 billion," said Baksaas.

"The migration of customers to our new 3G network in Thailand is on track,
with some 60 percent transferred. The move from a concession to a licence
regime is already contributing to significant regulatory cost savings. The
slow-down in revenue growth is explained by reduced interconnect rates, lower
voice prices and the recent weakness in the Thai economy," said Baksaas.

"Mobile data represents the next growth curve for Telenor. We are persistently
working to increase the number of active internet subscribers across all our
markets. Out of our total customer base of 172 million subscribers, some 20
percent are currently active internet users, representing a large growth
potential. While Telenor recently secured new spectrum in India and Pakistan,
our business in Bangladesh, significantly improved its 3G coverage during the
first three months of the year. Our Indian operation reported an organic
revenue growth of 44 percent in the quarter, gaining significant market
share. We also launched a new internet strategy in India, focusing on
affordable and service-based internet offers," said Baksaas.

"In conclusion, we had an encouraging start to the year. Our efficiency agenda
is progressing, while we continue to work on bringing affordable internet to
all and connecting the unconnected. However, we need to see continued
improvement in all our markets, in particular a pick-up in revenues in
Thailand and improved returns on the significant investments in Norway," said
Baksaas.

"We maintain our financial outlook for the year, excluding Myanmar, of low
single-digit organic revenue growth, a stable EBITDA margin and a capex to
sales ratio of around 16%," said Baksaas.

Key figures
The table below contains key figures for the first quarter of 2014, compared
to the previous year.

--------------------------------------------------------------------------------
| 1Q 1Q Year |
|(NOK in millions except earnings per share) 2014 2013 2013 |
|Revenues 26 515 24 716 104 027 |
|EBITDA before other income and expenses 9 298 8 423 35 892 |
|EBITDA margin before other income and expenses (%) 35.1 34.1 34.5 |
|Adjusted operating profit[1] 5 580 4 985 22 161 |
|Adjusted operating profit/Revenues (%) 21.0 20.2 21.3 |
|Profit after taxes and non-controlling interests 3 676 3 602 8 748 |
|Earnings per share from total operations, basic, in NOK 2.43 2.34 5.74 |
|Capex 6 595 2 868 17 044 |
|Capex excl. licences and spectrum 3 694 2 868 14 659 |
|Capex excl. licences and spectrum/Revenues (%) 13.9 11.6 14.1 |
|Operating cash flow [2] 5 604 5 555 21 233 |
|Net interest-bearing liabilities [3] 37 237 28 853 39 395 |
--------------------------------------------------------------------------------
[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 are defined as net interest-bearing debt
excluding net present value of licence liabilities.

For more information please refer to the quarterly report
athttp://www.telenor.com/investors/reports/2014/telenors-results-for-the-1...

Media Contact: Meera Bhatia, Communications Manager, Tel: (+47) 46 84 49 59,
E-mail:meera.bhatia@telenor.com

Press and analyst conference
In connection with the publication of the financial results, a press and
analyst conference will be held on Wednesday 7 May at 09:00 hrs Norwegian
time/CET. The presentation, which will also be broadcast live over the
Internet, will be held in Auditorium Voice, Telenor Expo Visitor Centre at
Fornebu near Oslo. CEO Jon Fredrik Baksaas and CFO Richard Olav Aa will
present the results. The presentation will be held in English.

Internet and mobile broadcast
The press and analysts conference will be broadcast live over the internet,
and will also be available as a recording after the conference. The live
service also allows for written questions to be submitted. In addition, the
conference will be available live and as a recording on mobile phones - for
access, SMS expo to 2440 or (+47) 2440 from abroad.

Conference Call and Q&A
You may also call in and listen to the presentation over the phone. This
service allows you to ask questions at the Q&A session at the end of the
presentation. To participate in the conference call please register before
the conference starts by calling +47 23162771 and state the confirmation
code7880881.

Material
The quarterly report and English versions of the presentations will be made
available here
http://www.telenor.com/investors/reports/2014/telenors-results-for-the-1...

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Telenor via Globenewswire

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