Fourth quarter and preliminary results for the year

In the fourth quarter of 2003 revenues increased by 6 per cent to NOK 13,801 million compared to the fourth quarter of 2002. Operating profit in the fourth quarter of 2003 was NOK 2,173 million compared to a loss of NOK 2,101 million in the same quarter of the previous year. The result before taxes increased in the same period from a loss of NOK 5,445 million to a profit of NOK 1,884 million. The 2002 results were strongly influenced by write-downs.

EBITDA (operating profit before depreciations and write-downs) was NOK 18,302 million for 2003, an increase of 36.0 per cent compared to the previous year. In the fourth quarter EBITDA was NOK 4,883 million, an increase of 1,293 million compared to the fourth quarter of 2002. The EBITDA margin increased from 27.6 per cent in 2002 to 34.5 per cent in 2003. In the fourth quarter of 2003 the EBITDA margin was 35.4 per cent, an increase from 27.5 per cent compared to the same quarter in 2002.

The market shares for mobile and fixed telephony in Norway have been stable since the end of the third quarter of 2003. The estimated market share for GSM mobile telephony in Norway, measured in the number of subscriptions, was around 57 per cent at the end of 2003. For fixed telephony in Norway, Telenor's market share measured in traffic minutes was 69 per cent at the end of 2003.

At the end of 2003 Telenor had a total of 34.8 million mobile subscriptions (including 100 per cent affiliated and consolidated companies), of which 2.4 million were in Norway. Mobile had revenues of NOK 23,810 million in 2003 and an operating profit of NOK 5,224 million. Corresponding figures for 2002 were NOK 20,346 million and NOK 1,414 million respectively. EBITDA in Mobile in 2003 was NOK 9,567 million, an increase from NOK 7,482 million in 2002. The EBITDA margin increased from 36.8 per cent in 2002 to 40.2 per cent in 2003 primarily due to underlying improvements in margins in international mobile operations.

In Fixed, EBITDA increased from NOK 5,597 million in 2002 to NOK 6,665 million in 2003. The EBITDA margin increased during the same period from 28.0 per cent to 32.5 per cent. This increase was primarily related to an increased contribution margin and reduced operating costs.

Broadcast increased revenues by 33.7 per cent in 2003 compared to 2002 to NOK 4,820 million. EBITDA increased from NOK 499 million to NOK 1,229 million and the EBITDA margin increased from 13.8 per cent to 25.5 per cent during the same period.

Capital expenditure for the Telenor group was NOK 6,454 million in 2003. This was NOK 2,435 million less than in 2002. At the end of 2003 the net interest-bearing liabilities were NOK 17.8 billion, which was approximately NOK 9 billion less than at the end of 2002.

"Results of our strategy and efficiency measures are now becoming evident, allowing us to demonstrate improved margins, lower investments and lower debt in 2003," says Jon Fredrik Baksaas, President and CEO of Telenor. "Delta 4, the programme for operational efficiency, is still ahead of our original objective to reduce the gross cost base by NOK 4 billion by the end of 2004 compared to 2001. At the same time we anticipate continued positive developments in results in 2004 and continued growth in revenues, driven by our international mobile operations," says Baksaas.

Contact person

Chief Press spokesman Dag Melgaard, tel.: (+47) 67 89 26 71 or (+47) 901 92 000

To editorial offices:

Press and analyst conference

In connection with the quarterly results, a press and analyst conference will be held in the Telenor Expo auditorium at Fornebu, Norway on Friday 13 February at 9:00 AM Norwegian time. Jon Fredrik Baksaas, president and CEO, will discuss the results for the quarter and the year as a whole.

Internet transmission

The press and analyst conference will be streamed over the Internet, transmitted live and sent as a recording after the conference, on https://www.telenor.com/ir

Capital Markets Day

On the same day, from 11:30 AM to 5:00 PM a Capital Markets Day will be held for investors and analysts. For further information about the Capital Markets Day, go to https://www.telenor.com/ir

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