With effect from 1 January 2003, Telenor has reorganized into three business areas, consisting of mobile operations, fixed network operations and TV operations, as well as other activities. This is the first quarterly report reflecting this new structure. The figures presented in this report for the different business areas for 2002 are restated to reflect the new structure, as if it had been in place as of 1 January 2002. Additional information regarding the changes in the organisational structure can be found on Telenor’s Internet pages.

• Revenues increased by 9% to NOK 12,606 million. Adjusted for the effects of businesses acquired and disposed of and changes in foreign exchange rates, the growth in revenues was approximately 3%. The correspondingly adjusted growth in revenues for the three business areas was 5%.
• The EBITDA margin increased from 25% to 33% and EBITDA was NOK 4,177 million in the first quarter of 2003. The increase was primarily as a result of cost savings and consolidation of subsidiaries.
• Operating profit increased from NOK 602 million to NOK 1,475 million, while profit before taxes and minority interests increased by more than NOK 1 billion to NOK 1,047 million, as a result of good underlying development. Increased interest expenses were offset by foreign currency gains.
• Telenor’s program of improving the efficiency of operations, Delta 4, is progressing according to plan.
• EBITDA in Mobile increased by 44% and operating profit by 47%, to NOK 2.2 billion and NOK 1.1 billion, respectively. The EBITDA margin increased to 41% compared to 35% in the first quarter of 2002.
• The EBITDA margin in Fixed was 32%, an increase of 6 percentage points. The EBITDA margin in Fixed-Norway increased by 6 percentage points to 35% as a result of cost savings.
• Broadcast’s revenues and EBITDA increased, primarily as a result of the consolidation of Canal Digital, while increased depreciation and amortization related to Canal Digital led to an increase in the operating loss.
• Capital expenditures were reduced to NOK 1,230 million, compared to NOK 1,879 million in 2002.
• Net interest-bearing liabilities was NOK 26.1 billion at the end of the first quarter of 2003, a decrease of NOK 0.7 billion since the beginning of the year.

In April 2003, Telenor sold 9% of the shares in Cosmote for approximately NOK 2.1 billion. A gain before taxes of approximately NOK 1.5 billion is expected to be recorded in the second quarter of 2003. Subsequent to this sale Telenor's ownership in Cosmote is 9%.