Results for the second quarter of 2003

Telenor’s revenues in the second quarter increased by 10 per cent to more than NOK 13.2 billion compared to the corresponding period last year. Operating profit increased from NOK 691 million to NOK 1.612 million as a result of good underlying development. Profit before taxes increased by NOK 2.1 billion to nearly NOK 2.5 billion, which include a gain of NOK 1.5 billion following the sale of shares in the Greek mobile company Cosmote.

Published: 23 July 2003 08:00

Reading Time: 3 minutes

Revenues for the first half of the year were NOK 25.8 billion, an increase of 9.6 per cent compared to the second half of 2002. Operating profit for the first half of 2003 increased by NOK 1.8 billion compared to the same period in 2002 and totalled close to NOK 3.1 billion. Profit before taxes and minority interests was NOK 3.5 billion for the first half of this year, an increase of NOK 3.1 billion compared to the first half of last year.

Compared to the second quarter of 2002, the EBITDA margin increased from 27 per cent to 33 per cent in the second quarter of 2003 while EBITDA (operating profit before depreciation, amortization and write-downs) increased from NOK 3.2 billion to NOK 4.35 billion. The increase is primarily due to cost cuts and the consolidation of companies. In the first half of 2003, EBITDA increased by 39.5 per cent compared to the first half of last year to NOK 8.5 billion.

Capital expenditure decreased to NOK 1.3 billion in the second quarter compared to NOK 2.2 billion in the same period last year. Net interest-bearing liabilities at the end of the second quarter this year was NOK 25.3 billion, which is NOK 0.8 billion lower than at the end of the first quarter this year.

By the end of the second quarter the number of mobile subscriptions in Telenor’s consolidated subsidiaries was 10 million. In consolidated mobile operations, EBITDA increased by 28 per cent and operating profit by 41 per cent to NOK 2,277 million and NOK 1,173 respectively in the second quarter of 2003 compared to the same period last year. This growth came mainly from international mobile operations. In Norway, the estimated market share measured in terms of number of mobile subscriptions is 58 per cent by the end of the second quarter this year. By the end of the first quarter the market share was just below 60 per cent.

In the fixed network operations the EBITDA margin increased by four percentage points to 33 per cent while it increased by more than five percentage points to 36 per cent in Norway compared to the second quarter last year. The estimated market share for fixed network operations in Norway measured in traffic minutes is unchanged since the end of the first quarter and is approximately 70 per cent.

Broadcast reported an operating profit, as well as increased revenues and EBITDA in the second quarter, primarily due to the consolidation of Canal Digital.


“We are still experiencing revenue growth and solid improvements in results and now see clear and positive results from ongoing cost-cutting initiatives and our strategy to consolidate our international mobile operations. We are satisfied that we have been able to maintain the market share for fixed network operations in Norway and that the growth in our international mobile portfolio is continuing. Competition in the Norwegian mobile market is increasing, and we will work to improve both services and service levels to secure our market positions here in the time to come,” says Jon Fredrik Baksaas, CEO.

Contacts:

Press Spokesman Dag Melgaard, tel.: +47 67 89 26 71 or +47 901 92 000

To the editorial staff:

Joint press and analyst’s presentation

Telenor will present their financial results for the second quarter in a joint press and analyst’s presentation, which will be held in the auditorium at the Telenor Expo Visitor Centre at Fornebu on Wednesday 23 July at 9:00 am local Norwegian time. Jon Fredrik Baksaas (CEO), Arve Johansen (Senior Executive Vice President) and Torstein Moland (Senior Executive Vice President/CFO) will present the results.

Via Internet

The press and analyst’s presentation will be streamed live via the Internet, and as a recording after the presentation at www.telenor.no/ir

International conference call

On the same day at 2:00 pm local Norwegian time, an international telephone conference pertaining to the second quarter results will take place, intended for investors and analysts. For more information about the conference call, please go to www.telenor.no/ir

Material

The second quarter report and the materials used during the press and analyst presentation will be available at www.telenor.no/ir