Edgar Filing: TELENOR ASA

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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934

Date: 06th May 2004, for 1^st Quarter results 2004

TELENOR ASA

(Registrant’s Name)

Snarøyveien 30,
1331 Fornebu,
Norway
(Registrant’s Address)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.


Form 20-F þ		Form 40-F o

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.


Yes o		No þ

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):

TABLE OF CONTENTS


TELENOR ASA FIRST QUARTER 2004 RESULTS
OUTLOOK FOR 2004
FIRST QUARTER OF 2004
KEY POINTS FROM THE FIRST QUARTER OF 2004 COMPARED TO THE FIRST QUARTER OF 2003
KEY FIGURES
KEY FIGURES FOR THE BUSINESS AREAS
BUSINESS AREAS
FIXED
BROADCAST
OTHER ACTIVITIES
OTHER PROFIT AND LOSS ITEMS FOR THE GROUP
US GAAP
OUTLOOK FOR 2004
SIGNATURES

TELENOR ASA FIRST QUARTER 2004 RESULTS

Telenor’s revenues increased by 13% to NOK 14,284 million. Telenor’s EBITDA margin increased from 33.1% to 35.1%. EBITDA increased by NOK 839 million to NOK 5,016 million. Telenor’s operating profit increased by NOK 807 million to NOK 2,282 million. Profit before taxes and minority interests increased by NOK 3.6 billion to NOK 4.7 billion. Net interest-bearing liabilities were NOK 19.3 billion, Telenor’s revenues increased by 13% to NOK 14,284 million, mainly due to the growth in the mobile operations and the consolidation of Sonofon as of 12 February 2004. Adjusted for the effect of acquisitions and disposals of operations and currency fluctuations, the growth in revenues was just below 9%.

Telenor’s EBITDA margin increased from 33.1% to 35.1%, primarily due to Mobile constituting a larger part of the Group. EBITDA increased by NOK 839 million to NOK 5,016 million. All business areas increased their EBITDA. Telenor’s operating profit increased by NOK 807 million to NOK 2,282 million. Profit before taxes and minority interests increased by NOK 3.6 billion to NOK 4.7 billion. In the first quarter of 2004, Telenor sold its remaining 9% ownership interest in Cosmote for NOK 3.1 billion and realized a gain before taxes of NOK 2.6 billion. Telenor’s work for improving operational efficiency continues. As a part of this work, agreements were made in the first quarter of 2004 to gather the Telenor Group’s Norwegian IT-operations in EDB Business Partner and to outsource EDB Business Partner’s Telecom application development activities.

In Mobile, EBITDA increased by NOK 621 million to NOK 2,816 million. The EBITDA margin decreased by 1.7 percentage points to 39.0% due to reduced margin in Telenor Mobil- Norway and the consolidation of Sonofon. In Fixed-Norway, EBITDA increased by NOK 37 million to NOK 1,620 million. The EBITDA margin increased by 1.4 percentage points to 36.1%.

At the end of the first quarter of 2004, Telenor’s market share for mobile services in Norway was estimated to be approximately 56% measured in number of subscriptions, down from 57% at the end of 2003. The market share for fixed line telephony in Norway measured in traffic minutes was 69%, in line with the end of 2003.

Broadcast had an operating profit of NOK 110 million compared to an operating loss in the first quarter of 2003. Capital expenditure was NOK 1,471 million compared to NOK 1,230 million in the first quarter of 2003. The increase was in Mobile.

Net interest-bearing liabilities were NOK 19.3 billion, an increase of NOK 1.5 billion from the end of 2003. The increase was mainly due to the acquisition of the remaining 46.5% ownership interest in Sonofon, partially offset by the sale of the shares in Cosmote.

In January 2004, Telenor entered into an agreement with the Kingdom of Norway, which is the largest shareholder in Telenor, in connection with Telenor’s program to buy back its own shares. The Kingdom of Norway agreed to cancel an amount of its own shares proportional to the amount of Telenor shares which Telenor repurchases in the market against payment by Telenor. As of 4 May 2004, Telenor had purchased 12.810.000 own shares in the market in accordance with the authority granted by Telenor’s general meeting of 8 May 2003.

The Kingdom of Norway reduced its ownership interest in Telenor to 53.15% (including Telenor’s own shares) through a sale of 170 million shares on 30 March 2004 and 695,600 shares on 14 April 2004.

In April 2004, following a government auction, Telenor was granted one of two new national licences for mobile telephony in Pakistan.

OUTLOOK FOR 2004

Telenor in general confirms its expectations for 2004 as presented in Telenor’s report for the fourth quarter of 2003. Overall, excluding special items we expect a positive development in Telenor’s results compared to 2003. Continued growth in revenues is expected, driven by the international mobile operations and the consolidation of Sonofon.

The EBITDA margin is expected to be approximately in line with 2003, excluding special items. This include consolidation of Sonofon, expected increase in sales and marketing expenses in a number of our mobile operations as well as operating expenses related to the establishment of mobile operations in Pakistan.

Capital expenditure is expected to be higher than in 2003 due to the purchase of satellite capacity, the consolidation of Sonofon, investments in new mobile technology in Norway, and investments in Pakistan, including license costs. In addition, the increase in subscriptions in some of the international mobile companies may result in Telenor accelerating certain network investments.

The sale of the Operating service division from the business area Fixed to EDB Business Partner is expected to have a small negative effect on Fixed Norway’s revenues. This transaction is expected to have a limited effect on the results for the Telenor Group for 2004, excluding special items.

The First Quarter of 2004 report is sent as enclosure with a separate mail in word and excel format.

FIRST QUARTER OF 2004

First quarter of 2004 showed a growth in revenues for the Telenor Group of 13% to NOK 14.3 billion. Profit before taxes and minority interests increased to NOK 4.7 billion.

Telenor ASA first quarter of 2004

KEY POINTS FROM THE FIRST QUARTER OF 2004 COMPARED TO THE FIRST QUARTER OF 2003

•		Telenor’s revenues increased by 13% to NOK 14,284 million, mainly due to the growth in the mobile operations and the consolidation of Sonofon as of 12 February 2004. Adjusted for the effect of acquisitions and disposals of operations and currency fluctuations, the growth in revenues was just below 9%.

•		Telenor’s EBITDA margin increased from 33.1% to 35.1%, primarily due to Mobile constituting a larger part of the Group. EBITDA increased by NOK 839 million to NOK 5,016 million. All business areas increased their EBITDA.

•		Telenor’s operating profit increased by NOK 807 million to NOK 2,282 million. Profit before taxes and minority interests increased by NOK 3.6 billion to NOK 4.7 billion. In the first quarter of 2004, Telenor sold its remaining 9% ownership interest in Cosmote for NOK 3.1 billion and realized a gain before taxes of NOK 2.6 billion.

•		Telenor’s work for improving operational efficiency continues. As a part of this work, agreements were made in the first quarter of 2004 to gather the Telenor Group’s Norwegian IT-operations in EDB Business Partner and to outsource EDB Business Partner’s Telecom application development activities.

•		In Mobile, EBITDA increased by NOK 621 million to NOK 2,816 million. The EBITDA margin decreased by 1.7 percentage points to 39.0% due to reduced margin in Telenor Mobil-Norway and the consolidation of Sonofon.

•		In Fixed-Norway, EBITDA increased by NOK 37 million to NOK 1,620 million. The EBITDA margin increased by 1.4 percentage points to 36.1%.

•		At the end of the first quarter of 2004, Telenor’s market share for mobile services in Norway was estimated to be approximately 56% measured in number of subscriptions, down from 57% at the end of 2003. The market share for fixed line telephony in Norway measured in traffic minutes was 69%, in line with the end of 2003.

•		Broadcast had an operating profit of NOK 110 million compared to an operating loss in the first quarter of 2003.

•		Capital expenditure was NOK 1,471 million compared to NOK 1,230 million in the first quarter of 2003. The increase was in Mobile.

•		Net interest-bearing liabilities were NOK 19.3 billion, an increase of NOK 1.5 billion from the end of 2003. The increase was mainly due to the acquisition of the remaining 46.5% ownership interest in Sonofon, partially offset by the sale of the shares in Cosmote.

•		In January 2004, Telenor entered into an agreement with the Kingdom of Norway, which is the largest shareholder in Telenor, in connection with Telenor’s program to buy back its own shares. The Kingdom of Norway agreed to cancel an amount of its own shares proportional to the amount of Telenor shares which Telenor repurchases in the market against payment by Telenor. As of 4 May 2004, Telenor had purchased 12.810.000 own shares in the market in accordance with the authority granted by Telenor’s general meeting of 8 May 2003.

•		The Kingdom of Norway reduced its ownership interest in Telenor to 53.15% (including Telenor’s own shares) through a sale of 170 million shares on 30 March 2004 and 695,600 shares on 14 April 2004.

•

In April 2004, following a government auction, Telenor was granted one of two new national licences for mobile telephony in Pakistan.

KEY FIGURES


	1st quarter					Year
(NOK in millions)	2004		2003			2003
Revenues		14,284		12,606			53,121
Revenues excluding gains		14,276		12,602			52,889
Revenues excluding gains — growth (%)		13.3		9.4			8.7
EBITDA 1)		5,016		4,177			18,302
EBITDA/Revenues (%)		35.1		33.1			34.5
EBITDA excluding gains and losses 2)		5,010		4,184			18,299
Operating profit		2,282		1,475			7,560
Operating profit/Revenues (%)		16.0		11.7			14.2
Associated companies		133		(34	)		1,231
Profit before taxes and minority interests		4,674		1,047			7,426
Net income		2,801		597			4,560

Net interest-bearing liabilities		19,297		26,139			17,817

Investments:
— Capex 3)		1,471		1,230			6,454
— Investments in businesses 4)		3,749		23			563

1)		For a definition and reconciliation of EBITDA, see table at the end of this report.
2)		See table “special items” at the end of this report for further details.
3)		Capex is investments in tangible and intangible assets.
4)		Consists of acquisition of shares and participations including acquisition of subsidiaries and businesses not organized as separate companies.

The table below shows key figures adjusted for special items (gains and losses on disposal, expenses for workforce reductions, loss contracts, exit from activities and write-downs) 1)


	1st quarter								Year
(NOK in millions)	2004		2003			Growth			2003			Growth
Revenues		14,276		12,602			13.3	%		52,889			8.7	%
EBITDA		5,035		4,189			20.2	%		18,586			28.1	%
EBITDA/Revenues (%)		35.3		33.2						35.1
Operating profit		2,304		1,503			53.3	%		7,989			87.1	%
Operating profit/Revenues (%)		16.1		11.9						15.1
Associated companies		133		(100	)	nm				(251	)	nm
Profit before taxes and minority interests		2,105		1,095			92.2	%		6,300			153.2	%

See table “special items” at the end of this report for further details.

KEY FIGURES FOR THE BUSINESS AREAS

Revenues


	1st quarter									Year
(NOK in millions)	2004			2003			Growth			2003			Growth
Mobile		7,214			5,388			33.9	%		23,810			17.0	%
Fixed		4,940			5,032			(1.8	%)		20,509			2.4	%
Broadcast		1,306			1,138			14.8	%		4,820			33.7	%
Other activities		2,454			2,678			(8.4	%)		10,811			(7.1	%)
Eliminations		(1,630	)		(1,630	)		—			(6,829	)		0.6	%
Total revenues		14,284			12,606			13.3	%		53,121			8.8	%

EBITDA


	1st quarter												Year
(NOK in millions)	2004			Margin 1)			2003			Margin 1)			2003		Margin 1)
Mobile		2,816			39.0	%		2,195			40.7	%		9,567		40.2	%
Fixed		1,620			32.8	%		1,592			31.6	%		6,665		32.5	%
Broadcast		348			26.6	%		204			17.9	%		1,229		25.5	%
Other activities		262			10.7	%		194			7.2	%		830		7.7	%
Eliminations		(30	)	nm				(8	)	nm				11	nm
Total EBITDA		5,016			35.1	%		4,177			33.1	%		18,302		34.5	%
Special items 2)		19		nm				12		nm				284	nm
EBITDA adjusted for special items 3)		5,035			35.3	%		4,189			33.2	%		18,586		35.1	%

1)		EBITDA as a percentage of total revenues.
2)		Gains, losses, expenses for workforce reductions, loss contracts and exit from activities. See table “special items” at the end of the report for further details.
3)		Margin is EBITDA adjusted as a percentage of revenues excluding gains.

Operating profit (loss)


	1st quarter												Year
(NOK in millions)	2004			Margin 1)			2003			Margin 1)			2003			Margin 1)
Mobile		1,506			20.9	%		1,112			20.6	%		5,224			21.9	%
Fixed		692			14.0	%		542			10.8	%		2,531			12.3	%
Broadcast		110			8.4	%		(73	)	nm				181			3.8	%
Other units		(17	)	nm				(112	)	nm				(488	)	nm
Eliminations		(9	)	nm				6		nm				112		nm
Total operating profit		2,282			16.0	%		1,475			11.7	%		7,560			14.2	%

Operating profit as a percentage of total revenues.

BUSINESS AREAS

Mobile


	1st quarter				Year
(NOK in millions)	2004		2003		2003
External revenues
Telenor Mobil — Norway		2,489		2,302		9,639
Sonofon — Denmark		672		—		—
Telenor Mobile Sweden		32		20		109
Pannon GSM — Hungary		1,403		1,205		5,368
DiGi.Com — Malaysia		940		732		3,170
Kyivstar — Ukraine		834		483		2,634
GrameenPhone — Bangladesh		493		326		1,535
Other		3		14		28
Total external revenues		6,866		5,082		22,483
Internal revenues		347		306		1,327
Gains on disposal		1		—		—
Total revenues		7,214		5,388		23,810

EBITDA		2,816		2,195		9,567
Depreciation and amortization		1,310		1,075		4,308
Write-downs		—		8		35
Operating profit		1,506		1,112		5,224

EBITDA/Total revenues (%)		39.0		40.7		40.2
Operating profit/Total revenues (%)		20.9		20.6		21.9

Investments:
— Capex		984		687		3,667
— Investments in businesses		3,661		4		95

•		Revenues increased by 33.9% compared to the first quarter of 2003. The EBITDA margin decreased from 40.7% in the first quarter of 2003 to 39,0% in the first quarter of 2004, mainly as a result of reduced margin in Telenor Mobil — Norway.

•		The results in the first quarter of 2004 were affected by the consolidation of Sonofon from 12 February 2004.

•		The other mobile operations showed a good profitability in the first quarter of 2004.

•		In April 2004, following a government auction, Telenor was granted one of two new national licences for mobile telephony in Pakistan, for a period of 15 years subject to renewal. The price of the licence at auction was US Dollar 291 million, half of which will be paid in 2004 and the remainder over a 10-year period.

Telenor Mobil — Norway


	1st quarter				Year
(NOK in millions)	2004		2003		2003
Subscriptions and connections		350		330		1,216
Traffic		1,315		1,257		5,391
SMS and content services		359		400		1,537
Customer equipment, service providers and other		465		315		1,495
Total external revenues		2,489		2,302		9,639
Internal revenues		311		308		1,270
Gains on disposal		—		—		—
Total revenues		2,800		2,610		10,909

EBITDA		998		1,083		4,262
Depreciation and amortization		238		293		1,147
Write-downs		—		—		—
Operating profit		760		790		3,115

EBITDA/Total revenues (%)		35.6		41.5		39.1
Operating profit/Total revenues (%)		27.1		30.3		28.6
Capex		214		77		500
ARPU (GSM) — monthly (NOK)		332		330		339
No. of subscriptions (in thousand)		2,378		2,342		2,364

•		Compared to the first quarter of 2003, revenues increased primarily due to the increase in sales to service providers and sale of customer equipment. External traffic revenues increased as a result of increased traffic per subscription and the increase in the number of subscriptions, partially offset by price reductions. The increase in external subscription revenues compared to the first quarter of 2003 was a result of the increase in the number of subscriptions. The reduction in external revenues from SMS and content services was due to reduced prices and an increase in the number of free messages, partially offset by the increase in the number of messages. Compared to the fourth quarter of 2003, revenues from SMS fell due to reduced prices and a reduction in the number of messages.

•		On 16 June 2003, Telenor Mobil introduced simplified pricing plans and lower average call charges. SMS prices were reduced from 6 May and from 1 December 2003, and on 1 July 2003 Telenor Mobil further reduced end user prices. As of 1 February 2004, Telenor Mobil reduced the termination charges to NetCom and as a result of reduced interconnection charges from NetCom, Telenor Mobil also reduced the end user prices on outgoing traffic to NetCom’s network from 12 February 2004. On 1 March 2004, SMS prices for prepaid subscriptions were further reduced.

•		In a market characterized by strong competition, the number of GSM subscriptions in Telenor Mobil increased by 19,000 compared to the end of 2003, and by 52,000 compared to the end of the first quarter of 2003. These additional subscriptions consisted primarily of GSM contract subscriptions.

•		At the end of the first quarter of 2004, the estimated market share for GSM measured in number of subscriptions was approximately 56%, down from 60% at the end of the first quarter of 2003 and 57% at the end of 2003. Mobile

		penetration was estimated to have increased to approximately 91%, up from 85% in the first quarter of 2003 and 90% in the fourth quarter of 2003.

•		The decrease in the EBITDA margin compared to the first quarter of 2003 was primarily due to increased costs relating to sales and marketing activities, higher costs of materials and traffic charges as a result of increased traffic to other mobile networks and increased sales of customer equipment with low margin, as well as price reductions. Provisions were also made in the first quarter of 2004 for contingent liabilities in connection with legal disputes.

•		Depreciation and amortization decreased compared to the first quarter of 2003, primarily due to reduced capital expenditure in recent years and the reversal of depreciation and amortization in previous periods.

•		The increase in capital expenditure compared to the first quarter of 2003 was primarily due to investments in new technology and the increased coverage and capacity in the GSM network.

Sonofon — Denmark


	1st quarter				Year
(NOK in millions)	2004		2003		2003
Mobile related revenues		511		—		—
Other revenues		165		—		—
Total revenues		676		—		—

EBITDA		166		—		—
Depreciation and amortization		114		—		—
Write-downs		—		—		—
Operating profit		52		—		—

EBITDA/Total revenues (%)		24,6		—		—
Operating profit/Total revenues (%)		7.7		—		—
Capex		66		—		—
ARPU (GSM) — monthly (NOK)		270		—		—
No. of subscriptions (in thousand)		996		—		—

The proceeding table shows figures from 12 February 2004, the time of consolidation of Sonofon. Telenor’s ownership interest in Sonofon is 100%. ARPU in the table is for the period 1 January—31 March 2004.

•		On 12 February 2004, Telenor acquired the remaining 46.5% of the shares in Sonofon for a consideration of NOK 3.66 billion. The company was consolidated as a subsidiary effective from this date.

•		Sonofon’s estimated market share was 22% at the end of the first quarter of 2004, which was a decrease compared to the end of 2003 due to increased competition. The number of subscriptions in Sonofon decreased by 14,000 from the end of 2003. Estimated mobile penetration in Denmark increased to 89% at the end of the first quarter of 2004.

•		Measured in Danish Kroner, ARPU fell compared to the end of 2003, primarily due to price reductions.

•		Revenues and the EBITDA margin for the first quarter of 2004 were NOK 1,210 million and 24.2%, respectively. The EBITDA margin was negatively affected by

		reduced prices and costs connected with sales and marketing activities, partially offset by a reduction in other operating expenses.

•		As from 1 July 2004, Sonofon will reduce the interconnection charges by a further 10%.

•		In April 2004 Sonofon reached an agreement to aquire the Danish service provider CBB Mobil A/S for DKK 130 million.

Telenor Mobile Sweden


	1st quarter						Year
(NOK in millions)	2004			2003			2003
Total revenues		46			20			127
EBITDA		(25	)		(8	)		(114	)
Depreciation and amortization		8			4			24
Write-downs		—			—			—
Operating profit		(33	)		(12	)		(138	)

Capex		4			58			79
ARPU (GSM) — monthly (NOK)		188			119			171
No. of subscriptions (in thousand)		84			52			81

The Norwegian Krone depreciated against the Swedish Krone by approximately 13% in the first quarter of 2004 compared to the first quarter of 2003.

•

The increase in the EBITDA-loss compared to the first quarter of 2003 was due to increased sales and marketing activity after the launch as an MVNO (Mobile Virtual Net Operator) in April 2003. The number of MVNO subscriptions was 61,000 at the end of the first quarter of 2004.

Pannon GSM — Hungary


	1st quarter				Year
(NOK in millions)	2004		2003		2003
Mobile related revenues		1,323		1,138		5,005
Other revenues		82		67		365
Total revenues		1,405		1,205		5,370

EBITDA		556		469		1,924
Depreciation and amortization		241		212		889
Write-downs		—		—		10
Operating profit		315		257		1,025

EBITDA/Total revenues (%)		39.6		38.9		35.8
Operating profit/Total revenues (%)		22.4		21.3		19.1
Capex		104		113		644
ARPU (GSM) — monthly (NOK)		169		153		165
No. of subscriptions (in thousand)		2,596		2,514		2,618

Telenor’s ownership interest in Pannon GSM is 100%. The Norwegian Krone depreciated against the Hungarian Forint by approximately 6% in the first quarter of 2004 compared to the first quarter of 2003.

•		Pannon GSM’s estimated market share decreased by one percentage point compared to the end of 2003 and was 35% at the end of the first quarter of 2004, compared to 38% at the end of the first quarter of 2003. Compared to the end of the first quarter of 2003, the estimated mobile penetration in Hungary increased from 70% to 80%.

•		In a market characterised by tough competition, Pannon GSM increased the number of contract subscriptions by 25,000 compared to the end of 2003, while the increase was 93,000 compared to the end of the first quarter of 2003.

•		ARPU measured in local currency increased by 4% compared to the first quarter of 2003, primarily due to an increased share of contract subscriptions in addition to increased usage per subscription. The increase in the number of subscriptions and increased ARPU contributed to revenue growth in local currency of 10% compared to the first quarter of 2003.

•		The EBITDA margin increased compared to the first quarter of 2003 due to more efficient operations.

•		Depreciation and amortization increased compared to the first quarter of 2003 due to a higher level of capital expenditure in recent years.

•		During 2003, Pannon GSM was determined to have significant market power in the national interconnection market in Hungary in both 2002 and 2003. Pannon GSM appealed against these decisions. It is not yet known when the cases will be ruled on in the Hungarian courts. In case of an unfavorable outcome, Pannon GSM may be required to reduce its interconnection charges.

DiGi.Com — Malaysia


	1st quarter				Year
(NOK in millions)	2004		2003		2003
Mobile related revenues		811		633		2,713
Other revenues		130		101		463
Total revenues		941		734		3,176

EBITDA		426		307		1,295
Depreciation and amortization		210		188		780
Write-downs		—		6		18
Operating profit		216		113		497

EBITDA/Total revenues (%)		45.3		41.8		40.8
Operating profit/Total revenues (%)		23.0		15.4		15.6
Capex		103		144		1,043
ARPU (GSM) — monthly (NOK)		116		123		117
No. of subscriptions (100% in thousand)		2,416		1,803		2,207

Telenor’s ownership interest in DiGi.Com was 61.0% at the end of the first quarter of 2004. The Norwegian Krone appreciated against the Malaysian Ringgit by approximately 2% in the first quarter of 2004 compared to the first quarter of 2003.

•

DiGi.Com’s estimated market share increased by one percentage point compared to the end of 2003 and was 21% at the end of the first quarter of 2004, compared

		to 19% at the end of the first quarter of 2003. Compared to the end of the first quarter of 2003, the estimated mobile penetration in Malaysia increased from 39% to 46%.

•		Measured in local currency, revenues increased by 31% compared to the first quarter of 2003 primarily due to the increased number of subscriptions. Measured in local currency, ARPU decreased by 3% compared to the first quarter of 2003 due to the fact that new subscriptions on average generated less traffic, as well as price reductions in the form of free call time and loyalty programmes.

•		The increase in the EBITDA margin was due to more efficient operations and increased interconnection charges. Measured in local currency, EBITDA increased by 43% compared to the first quarter of 2003.

•		Depreciation and amortization increased compared to the first quarter of 2003 as a result of a high level of capital expenditure in the fourth quarter of 2003.

Kyivstar — Ukraine


	1st quarter				Year
(NOK in millions)	2004		2003		2003
Mobile related revenues		822		464		2,569
Other revenues		12		19		65
Total revenues		834		483		2,634

EBITDA		505		263		1,573
Depreciation and amortization		102		77		343
Write-downs		—		—		—
Operating profit		403		186		1,230

EBITDA/Total revenues (%)		60.6		54.5		59.7
Operating profit/Total revenues (%)		48.3		38.5		46.7
Capex		331		218		979
ARPU (GSM) — monthly (NOK)		87		81		94
No. of subscriptions (100% in thousand)		3,221		2,012		3,037

Telenor’s ownership interest at the end of the first quarter of 2004 was 55.35%. Telenor increased its ownership interest further in April 2004 by 1.16% for a cost of US Dollar 5 million. The functional currency for Kyivstar is the US Dollar. The Norwegian Krone appreciated against the US Dollar by approximately 2% in the first quarter of 2004 compared to the first quarter of 2003.

•		Kyivstar’s estimated market share decreased by two percentage points compared to the end of 2003 and was 45% at the end of the first quarter of 2004, compared to 50% at the end of the first quarter of 2003. The decrease was a result of increased competition within the prepaid segment. Compared to the first quarter of 2003, the estimated mobile penetration in Ukraine increased from 9% to 15%.

•		ARPU increased compared to the first quarter of 2003. This was primarily related to a 60% increase on average in the number of traffic minutes per subscription mainly due to the introduction of a Calling Party Pays regime from 19 September 2003.

•		A significant increase in both the number of subscriptions and ARPU contributed to an increase in revenues measured in US Dollar by 76% compared to the first quarter of 2003.

•		The high EBITDA margin reflected cost-effective operations and limited sales and marketing expenses.

•		Depreciation and amortization increased compared to the first quarter of 2003 as a result of increased capital expenditure in the subsequent quarters.

•		The increase in capital expenditure compared to the first quarter of 2003 was related to network investments as a result of a larger customer base.

GrameenPhone — Bangladesh


	1st quarter				Year
(NOK in millions)	2004		2003		2003
Mobile related revenues		490		321		1,529
Other revenues 1)		3		5		7
Total revenues		493		326		1,536

EBITDA		283		197		1,001
Depreciation and amortization		34		36		158
Write-downs		—		—		—
Operating profit		249		161		843

EBITDA/Total revenues (%)		57.4		60.4		65.2
Operating profit/Total revenues (%)		50.5		49.4		54.9
Capex		160		77		429
ARPU (GSM) — monthly (NOK)		123		133		136
No. of subscriptions (100% in thousand)		1,520		835		1,141

Telenor’s ownership interest at the end of the first quarter of 2004 was 51.0%. The Norwegian Kroner appreciated against the Bangladeshi Takka by approximately 4% in the first quarter of 2004 compared to the first quarter of 2003.

•		GrameenPhone’s estimated market share increased by one percentage point compared to the end of 2003 and was 63% at the end of the first quarter of 2004, compared to 70% at the end of the first quarter of 2003. The decrease compared to the first quarter of 2003 was due to increased competition, particularly in the fourth quarter of 2003. The estimated mobile penetration in Bangladesh doubled from 0.9% in the first quarter of 2003 to 1.8% in the first quarter of 2004.

•		Compared to the end of 2003, the number of subscriptions in GrameenPhone increased by 33% to more than 1.5 million subscriptions, the increase from the first quarter of 2003 was 82%. The increase in the number of subscriptions contributed to an increase in revenues measured in local currency by 57% compared to the first quarter of 2003.

•		Measured in local currency, ARPU decreased by 4% compared to the first quarter of 2003. This was mainly due to a higher portion of prepaid subscriptions and price reductions, including free call time.

•		Measured in local currency, EBITDA increased by 49% compared to the first quarter of 2003, mainly due to increased revenues and more efficient operations. The EBITDA margin, however, decreased compared to the first quarter of 2003

		due to increased sales and marketing expenses in relation to the significant increase in the number of subscriptions.

•		Capital expenditure increased compared to the first quarter of 2003 as a result of an increase in the need for network investments due to growth in the number of subscriptions in GrameenPhone and in the total market in Bangladesh. Significant network investments are also expected in future quarters.

Other units in Mobile
(including eliminations and amortization and write-downs of net excess values)


	1st quarter						Year
(NOK in millions)	2004			2003			2003
EBITDA		(93	)		(116	)		(374	)
Depreciation and amortization 1)		363			265			967
Write-downs		—			2			7
Operating (loss)		(456	)		(383	)		(1,348	)
1) Includes amortization of Telenor’s net excess values by *)		363			239			911
Capex		2			—			(7	)

Net excess values are the difference between Telenor’s acquisition cost and Telenor’s share of equity at acquisition of subsidiaries. Telenor Mobile Sweden is now shown and discussed separately and is no longer included in Other units in Mobile. The figures in the preceding table are changed to reflect this transition.

•		Other units in Mobile include costs related to the management and administration of the international mobile operations, as well as amortization and write-downs of Telenor’s net excess values on mobile companies.

•		Increased amortization of net excess values compared to the first quarter of 2003 was mainly due to Sonofon, which was consolidated as of 12 February 2004.

Associated companies and joint ventures in Mobile


	1st quarter						Year
(NOK in millions)	2004			2003			2003
Telenors share of 1)
Net income after taxes		264			114			608
Amortization of Telenor’s net excess values 2)		(83	)		(157	)		(534	)
Write-downs of Telenor’s excess values		—			—			(15	)
Gains on disposal of ownership interests		—			65			1,580
Net result from associated companies		181			22			1,639

1)		The figures are partly based on management’s estimates in connection with the preparation of the consolidated financial statements. The consolidated profit and loss statement contains only the line “net result from associated companies”. The table includes Telenor’s share of the results in Sonofon until 12 February 2004. Effective from this date Sonofon was consolidated as a subsidiary. Cosmote was included as an associated company through April 2003.

2)		Net excess values are the difference between Telenor’s acquisition cost and Telenor’s share of equity at acquisition of associated companies.

•		In the first quarter of 2004, there was a significant growth in the overall subscription base for the associated companies in total, adjusted for Sonofon. Consistent with previous quarters, growth was especially strong in VimpelCom in Russia and DTAC in Thailand.

•		Adjusted for Sonofon and Cosmote, all associated mobile companies increased net income after taxes compared to the first quarter of 2003. In the first quarter of 2003, net income after taxes from associated companies was negatively affected by an adjustment of approximately NOK 50 million to account for the difference between the estimated and actual results for 2002.

•		Reduced amortization of Telenor’s net excess values compared to the first quarter of 2003 was mainly due to the consolidation of Sonofon as a subsidiary on 12 February 2004.

•		Gains on disposal in the first quarter of 2003 was due to the sale of Telenor’s ownership interest in StavTeleSot to Vimpelcom-Region.

FIXED


	1st quarter					Year
(NOK in millions)	2004			2003		2003
External revenues
Norway		4,055			4,150		16,409
Sweden		411			292		1,517
Russia		—			166		701
Other countries		43			38		160
Total external revenues		4,509			4,646		18,787
Internal revenues		431			386		1,713
Gains on disposal		—			—		9
Total revenues		4,940			5,032		20,509

EBITDA		1,620			1,592		6,665
Depreciation and amortization 1)		928			1,050		4,110
Write-downs		—			—		24
Operating profit		692			542		2,531
1) Includes amortization of Telenor’s net excess values by		(26	)		12		(76	)

EBITDA/Total revenues (%)		32.8			31.6		32.5
Operating profit/Total revenues (%)		14.0			10.8		12.3

Investments:
— Capex		378			396		1,867
— Investments in businesses		86			—		294

•

EBITDA and the EBITDA margin increased compared to the first quarter of 2003 as a result of an improvement in all the existing operations. The increase more than offset the decrease in EBITDA from Fixed — Russia due to the disposal of Comincom/Combellga on 1 December 2003.

Fixed — Norway


	1st quarter				Year
(NOK in millions)	2004		2003		2003
Retail revenues
Subscriptions and connections
— PSTN/ISDN		958		1,112		4,300
Subscriptions and connections
— ADSL/Internet		281		237		1,041
Internet traffic		138		167		561
Other traffic		1,205		1,333		5,062
Total fixed network market		2,582		2,849		10,964
Leased lines		81		81		329
Data services (frame relay, atm, lan-lan, datapak)		200		212		836
Managed services		164		194		726
Other retail products		96		88		377
Total other retail revenues		541		575		2,268
Total retail revenues		3,123		3,424		13,232

Wholesale revenues
Sale to service providers and operators		186		23		249
Domestic interconnect		159		170		643
International interconnect		78		74		339
Transit traffic		253		245		1,038
Leased lines		171		161		631
Other wholesale revenues		85		53		277
Total wholesale revenues		932		726		3,177
Total external revenues		4,055		4,150		16,409
Internal revenues		438		406		1,776
Gains on disposal		—		—		4
Total revenues		4,493		4,556		18,189

EBITDA		1,620		1,583		6,512
Depreciation and amortization 1)		878		934		3,773
Write-downs		—		—		19
Operating profit		742		649		2,720
1) Includes amortization of Telenor’s net excess values by		1		1		9

EBITDA/Total revenues (%)		36.1		34.7		35.8
Operating profit/Total revenues (%)		16.5		14.2		15.0

Investments:
— Capex		355		334		1,568
— Investments in businesses		—		—		1

•

External revenues from subscriptions and connections — PSTN/ISDN decreased compared to the first quarter of 2003 due to the transition to sales of access lines

		on a wholesale basis and a decrease in the number of subscriptions in the market as a whole.

•		The increase in external revenues from subscriptions and connections — ADSL/Internet was due to the increased number of ADSL subscriptions (residential and business) which was 208,000 at the end of the first quarter of 2004, an increase of 87,000 compared to the first quarter of 2003 and 31,000 compared to the end of 2003. Telenors estimated market share for ADSL (residential- and business subscriptions) was 56% at the end of the first quarter of 2004 compared to 57% at the end of 2003 and 63% at the end of the first quarter 2003.

•		The reduction in external traffic revenues compared to the first quarter of 2003 was due to a 10% decrease in total traffic in Telenor’s network, measured in minutes, and a reduced market share. The reduction in total traffic was due to the migration of voice traffic from fixed telephony to mobile telephony and the transition of data traffic from dial-up Internet to ADSL.

•		Telenor’s market share measured in traffic minutes was 69% at the end of the first quarter of 2004, in line with the end of 2003, compared to 70% at the end of the first quarter of 2003.

•		The reduction in external revenues from data services compared to the first quarter of 2003 was due to the transition to IP-based data services with lower prices, while the decrease in external revenue from managed services was due to the decline in, and renegotiation of, managed services contracts.

•		The increase in revenues from the sale to service providers and operators was due to increased sale of access lines on a wholesale basis (PSTN, ISDN and ADSL). The number of PSTN/ISDN lines sold on a wholesale basis was 339,000 at the end of the first quarter of 2004, an increase of 314,000 compared to the first quarter of 2003 and 109,000 compared to the end of 2003. The number of ADSL subscriptions sold on a wholesale basis was 76,000 at the end of the first quarter of 2004, an increase of 55,000 compared to the first quarter of 2003 and 20,000 compared to the end of 2003.

•		The increase in external revenues from other wholesale products was primarily due to increased sales of local loop unbundled subscriptions. The number of local loop unbundled subscriptions sold at the end of the first quarter of 2004 was 96,000, an increase of 43,000 compared to the end of the first quarter of 2003 and 16,000 compared to the end of 2003.

•		EBITDA increased compared to the first quarter of 2003, primarily due to higher gross margin (revenues less costs of materials and traffic charges as a percentage of revenues). The increase in the gross margin was due to the transition of data traffic from dial-up Internet to ADSL and reduced termination charges in the mobile networks from 1 February 2004. In the first quarter of 2004, NOK 18 million was expensed for workforce reductions, compared to NOK 6 million in the first quarter of 2003.

•		Depreciation and amortization was reduced compared to the first quarter of 2003, primarily due to reduced capital expenditure in recent years.

•		The increase in capital expenditure compared to the first quarter of 2003 was primarily due to the increase in investments in administrative support systems for customer, order and invoicing.

Fixed — Sweden


	1st quarter						Year
(NOK in millions)	2004			2003			2003
External revenues		411			292			1,517
Internal revenues		23			25			81
Gains on disposal		—			—			5
Total revenues		434			317			1,603

EBITDA		(3	)		(41	)		(56	)
Depreciation and amortization 1)		37			64			141
Write-downs		—			—			1
Operating (loss)		(40	)		(105	)		(198	)
1) Includes amortization of Telenor’s net excess values by		(27	)		(5	)		(143	)

Investments:
— Capex		15			9			85
— Investments in businesses		78			—			13

•		The trading in Utfors AB shares on the Stockholm stock exchange ceased on 31 March 2004. Telenor held 98.5% of the shares in Utfors AB at that time.

•		The increase in revenues, measured in NOK, compared to the first quarter of 2003 was due to the increase in sale of traffic to Glocalnet on a wholesale basis and a weakened Norwegian Krone compared to the Swedish Krone.

•		The decrease in the EBITDA loss compared to the first quarter of 2003 was primarily due to increased revenues.

•		Reduced depreciation and amortization compared to the first quarter of 2003 was due to a reduction in the amortization period for a significant part of the negative goodwill in relation to the final allocation of net excess values in the third quarter of 2003 related to the acquisition of Utfors AB.

Fixed — Russia


	1st quarter				Year
(NOK in millions)	2004		2003		2003
Total revenues		—		167		703
EBITDA		—		57		215
Operating profit 1)		—		19		71
1) Includes amortization of Telenor’s net excess values by		—		16		58

Investments:
— Capex		—		43		173
— Investments in businesses		—		—		280

•

Telenor’s shareholding in Comincom/Combellga was sold on 1 December 2003 in exchange for shares in the listed company Golden Telecom.

Comincom/Combellga was consolidated as a subsidiary up until 1 December 2003. Golden Telecom is accounted for as an associated company from this date.

Fixed — other countries

•

The activities in Fixed — Other Countries consist of activities in the Czech Republic and Slovakia. EBITDA was NOK 4 million in the first quarter of 2004, which was an improvement of NOK 11 million compared to the first quarter of 2003 due to increased revenues and reduced operating expenses.

BROADCAST


	1st quarter					Year
(NOK in millions)	2004		2003			2003
External revenues
Distribution		1,060		870			3,761
Transmission		203		214			816
Other		8		11			64
Total external revenues		1,271		1,095			4,641
Internal revenues		35		43			159
Gains on disposal		—		—			20
Total revenues		1,306		1,138			4,820

EBITDA		348		204			1,229
Depreciation and amortization 1)		238		273			1,030
Write-downs		—		4			18
Operating profit (loss)		110		(73	)		181
1) Includes amortization of Telenor’s net excess values by		67		63			256

EBITDA/Total revenues (%)		26.6		17.9			25.5
Operating profit/Total revenues (%)		8.4	nm			3.8

Investments:
— Capex		23		28			252
— Investments in businesses		—		1			14

•		Increased revenues due to price increases and a higher number of subscribers, combined with a limited increase in operating expenses, excluding depreciation and amortization, increased the EBITDA margin to 26.6% in the first quarter of 2004 compared to 17.9% in the first quarter of 2003. In addition, the results in the first quarter of 2003 were negatively affected by accruals between the quarters in 2003.

•		The decrease in depreciation and amortization compared to the first quarter of 2003 was due to fully depreciated fixed assets.

Broadcast — Distribution


	1st quarter						Year
(NOK in millions)	2004		2003				2003
External revenues
Satellite dish		730		578				2,528
Cable-TV		238		212				888
Small antenna TV-networks		90		74				335
Other		2		6				10
Total external revenues		1,060		870				3,761
Internal revenues		2		2				13
Gains on disposal		—		—				20
Total revenues		1,062		872				3,794

EBITDA		192		85				686
Depreciation and amortization 1)		168		196				754
Write-downs		—		2				8
Operating profit (loss)		24		(113	)			(76	)
1) Include amortization of Telenor’s net excess values by		67		63				255

EBITDA/Total revenues (%)		18.1		9.7				18.1
Operating profit/Total revenues (%)		2.3	nm			nm

Investments:
— Capex		8		17				112
— Investments in businesses		—		—				—

•		Revenues in Distribution increased compared to the first quarter of 2003 mainly due to a higher number of subscribers, price increases for satellite dish and currency fluctuations.

•		The increase in EBITDA compared to the first quarter of 2003, was due to increased revenues. In addition, EBITDA was negatively affected in the first quarter of 2003 by accruals between the quarters in 2003.

•		The decrease in depreciation and amortization was due to fully depreciated fixed assets.

Broadcast — Transmission


	1st quarter				Year
(NOK in millions)	2004		2003		2003
External revenues		203		214		816
Internal revenues		100		118		461
Gains on disposal		—		—		—
Total revenues		303		332		1,277

EBITDA		152		139		554
Depreciation and amortization		66		74		266
Write-downs		—		—		7
Operating profit		86		65		281

EBITDA/Total revenues (%)		50.2		41.9		43.4
Operating profit/Total revenues (%)		28.4		19.6		22.0

Investments:
— Capex		12		10		116
— Investments in businesses		—		—		—

•		The decrease in external revenues in Transmission compared to the first quarter of 2003 was due to reduced sales of analogue transmissions via satellite. Decreased sales to other areas within Broadcast and to other Telenor entities contributed to the decrease in internal revenues.

•		EBITDA increased compared to the first quarter of 2003 due to reduced price on the leasing of satellite capacity which more than offset reduced revenues.

•		The decrease in depreciation and amortization was due to fully depreciated fixed assets.

Broadcast — Other

•

Increased EBITDA in Broadcast — Other compared to the first quarter of 2003 was due to increased revenues from Distribution in the first quarter of 2004.

OTHER ACTIVITIES

EDB Business Partner


	1st quarter				Year
(NOK in millions)	2004		2003		2003
External revenues		805		804		3,210
Internal revenues		231		254		1,060
Gains on disposal		—		—		19
Total revenues		1,036		1,058		4,289

EBITDA		128		95		399
Depreciation and amortization		86		89		375
Write-downs		—		4		28
Operating profit (loss)		42		2		(4	)

EBITDA/Total revenues (%)		12.4		9.0		9.3
Operating profit/Total revenues (%)		4.1		0.2		nm

Investments:
— Capex		31		59		210
— Investments in businesses		—		4		95

Telenor’s ownership interest in EDB Business Partner was 51.8% at the end of the first quarter of 2004.

•		Adjusted for acquisitions and disposals of operations, revenues were in line with the first quarter of 2003. Banking & Finance had a limited increase in revenues and Telekom had a limited decrease.

•		The EBITDA margin increased compared to the first quarter of 2003 due to cost savings related to the restructuring of Banking & Finance, the winding up of operations with low margins, and a general focus on cost control.

•		Depreciation and amortization decreased compared to the first quarter of 2003 due to fully depreciated fixed assets.

•		EDB Business Partner’s capital expenditure in the first quarter of 2004 decreased compared to previous quarters due to more efficient utilization of earlier investments and because no major projects were launched during the period.

•		In the first quarter of 2004, EDB Business Partner entered into an agreement to sell a substantial portion of its activities in Telekom for approximately NOK 400 million. The transaction was carried out on 30 April 2004.

•		In the first quarter of 2004, EDB Business Partner entered into an agreement to acquire a substantial portion of the operations of the Operating Service division from the business area Fixed. Telenor has also extended and prolonged its agreement with EDB Business Partner for the operation of Telenor’s IT systems until 1 May 2011. In addition, through this agreement EDB Business Partner took over operating contracts for a number of external customers from Telenor. These transactions were completed on 3 May 2004.

Other business units

Revenues


	1st quarter						Year
(NOK in millions)	2004			2003			2003
Satellite Services		476			500			1,996
Satellite Networks		133			131			551
Teleservice		128			180			725
Nextra International		—			131			256
Software Services		30			19			121
Other		131			111			515
Eliminations		(9	)		(1	)		(10	)
Revenues		889			1,071			4,154
Gains on disposal		5			—			51
Total revenues		894			1,071			4,205

EBITDA		141			106			408
Depreciation and amortization 1)		105			119			491
Write-downs 1)		3			—			37
Operating profit (loss)		33			(13	)		(120	)
1) Include amortization and write-downs of Telenor’s net excess values by		9			10			40

Operating profit (loss)
Satellite Services		31			60			200
Satellite Networks		19			4			34
Teleservice		(2	)		5			(43	)
Nextra International		(1	)		(42	)		(220	)
Software Services		(4	)		(27	)		(86	)
Other		(10	)		(13	)		(5	)
Total operating profit (loss)		33			(13	)		(120	)

Investments:
— Capex		40			37			233
— Investments in businesses		2			14			30

Satellite Services

•		The decrease in revenues in Satellite Services compared to the first quarter of 2003 was primarily due to a reduction in the price and volume of Inmarsat-based satellite services and the effect of a the strengthening of the Norwegian Krone against the US Dollar.

•		The decrease in operating profit compared to the first quarter of 2003 was primarily due to decreased revenues and the impact of currency fluctuations (weakened US Dollar and strengthened Euro against the Norwegian Krone). Moreover, depreciation and amortization increased as a consequence of reduced depreciation periods for some earth station equipment.

Satellite Networks

•		The increase in revenues in Satellite Networks compared to the first quarter of 2003 was primarily due to increased sales under existing contracts in the Norwegian and Dutch satellite operations as well as in the Taide Internet operations. The increase was partially offset by decrease in revenues due to the sale of the operations in Poland in November 2003.

•		The increase in operating profit compared to the first quarter of 2003 was due to increased revenues and better operating margins as a result of better utilization of space capacity and a general focus on cost control.

Teleservice

•		Decreased revenues in Teleservice compared to the first quarter of 2003 were primarily due to the disposals of operations. As of 1 January 2004, the MeetAt operations were transferred to the business area Fixed, and in addition parts of the operations outside Norway were sold. In the first quarter of 2003, these operations had in aggregate revenues of NOK 32 million. A reduced total market for directory enquiry services and a reduced market share also contributed to reduced revenues. Gains from the disposal of operations amounted to NOK 5 million in the first quarter of 2004.

•		Reduced operating profit compared to the first quarter of 2003 was primarily due to reduced revenues from the directory enquiry services. The decrease in operating profit due to the sale of operations was largely offset by gains from such disposals.

Nextra International

•

The operating companies in Nextra International were wound up or sold. However, certain matters are still unresolved regarding the final settlement of the sales and liquidations, and as a consequence some of the holding companies are not yet liquidated.

Software services

•		Increased revenues compared to the first quarter of 2003 were mainly due to changes in delivery periods for internal sales of CA software.

•		Restructuring of the operations and renegotiation of the agreement with Computer Associates in the fourth quarter of 2003 contributed to reduced operating expenses compared to the first quarter of 2003. In addition to increased revenues, this contributed to reduced operating loss compared to the first quarter of 2003.

Corporate functions and group activities


	1st quarter						Year
(NOK in millions)	2004			2003			2003
External revenues		65			49			229
Internal revenues		457			496			1,955
Gains on disposal		2			4			133
Total revenues		524			549			2,317

EBITDA		(7	)		(7	)		23
Depreciation and amortization		85			94			384
Write-downs		—			—			3
Operating (loss)		(92	)		(101	)		(364	)

Investments:
— Capex		15			29			253
— Investments in businesses		—			—			93

•		EBITDA was in line with the first quarter of 2003. Compared to the first quarter of 2003, expenses for property developments decreased, while expenses in group projects, mainly cost programmes, increased.

•		The decrease in depreciation and amortization compared to the first quarter of 2003 was due to reversal of previous depreciation related to investment subsidies received for Special Service Obligations.

•		Capital expenditure decreased compared to the first quarter of 2003 due to low property-related investments in the first quarter of 2004.

OTHER PROFIT AND LOSS ITEMS FOR THE GROUP

Depreciation, amortization and write-downs


	1st quarter				Year
(NOK in millions)	2004		2003		2003
Depreciation of tangible assets		1.924		2.018		7.986
Amortization of goodwill *)		213		209		686
Amortization of other intangible assets *)		594		459		1.925
Total depreciation and amortization		2.731		2.686		10.597
Write-downs of tangible assets		1		10		104
Write-downs of goodwill		2		4		16
Write-downs of other intangible assets		—		2		25
Total write-downs		3		16		145
Total depreciation, amortization and write-downs		2.734		2.702		10.742

See specification below.

•

In the fourth quarter of 2003, certain reclassifications from tangible assets to intangible assets were made, mainly related to software in administrative support systems. The comparable figures are adjusted to reflect these changes.

Specification of amortization of goodwill and other intangible assets (including amortization of Telenor’s net excess values)


	1st quarter					Year
(NOK in millions)	2004			2003		2003
Amortization of goodwill
Sonofon		38			—		—
DiGi.Com		12			14		48
Pannon GSM		81			76		308
Kyivstar		10			10		39
Other Mobile		—			3		5
Total Mobile		141			103		400
Fixed		(26	)		12		(95	)
Broadcast		53			50		197
EDB Business Partner		38			36		151
Other units		7			8		33
Total amortization of goodwill		213			209		686

Amortization of other intangible assets
Sonofon		130			—		—
DiGi.Com		20			21		83
Pannon GSM		153			144		564
Kyivstar		58			50		213
Other Mobile		83			99		374
Total Mobile		444			314		1,234
Fixed		107			104		431
Broadcast		19			16		78
EDB Business Partner		—			—		1
Other units		24			25		181
Total amortization of other intangible assets		594			459		1,925

•

Amortization of goodwill in Fixed was an income in the first quarter of 2004 compared to an expense in the first quarter of 2003. The change was due to the sale of Comincom/Combellga (NOK 11 million) and amortization of negative goodwill related to Utfors AB (NOK 27 million).

Associated companies


	1st quarter						Year
(NOK in millions)	2004			2003			2003
Telenors share of 1)
Net income after taxes		240			68			329
Amortization of Telenor’s net excess values		(107	)		(168	)		(579	)
Write-downs of Telenor’s excess values		—			—			(26	)
Gains on disposal of ownership interests		—			66			1,507
Net result from associated companies		133			(34	)		1,231

The figures are partly based on management’s estimates in connection with the preparation of the consolidated financial statements. The consolidated profit and loss statement contains only the line “net result from associated companies”.

•		Increased net income after taxes from associated companies compared to the first quarter of 2003 was primarily due to increased profitability in associated companies in Mobile.

•		The decrease in amortization of Telenor’s net excess values compared to the first quarter of 2003 was mainly due to the consolidation of Sonofon as a subsidiary as from 12 February 2004, partially offset by amortization related to Golden Telecom, which became an associated company as of 1 December 2003.

•		Gains on disposal in the first quarter of 2003 was due to the sale of Telenor’s ownership interest in StavTeleSot to Vimpelcom-Region.

Financial items


	1st quarter						Year
(NOK in millions)	2004			2003			2003
Financial income		108			165			586
Financial expenses		(409	)		(576	)		(2,023	)
Net foreign currency gain (loss)		(31	)		103			(1	)
Net gains (losses) and (write-downs)		2,591			(86	)		73
Net financial items		2,259			(394	)		(1,365	)

Gross interest expenses		(405	)		(574	)		(2,033	)
Net interest expenses		(307	)		(453	)		(1,549	)

•		The decrease in financial income compared to the first quarter of 2003 was mainly due to the decline in market interest rates, partially offset by increased interest-bearing financial assets. In the first quarter of 2003, NOK 19 million in dividends from the company Expert ASA was included in financial income.

•		The decrease in interest-bearing liabilities and average interest rates contributed to the decrease in financial expenses compared to the first quarter of 2003. In the first quarter of 2003, approximately NOK 90 million was accrued and expensed for interest related to legal disputes.

•		Net currency losses in the first quarter of 2004 were mainly due to the holding of interest-bearing financial assets in Euro subsequent to the sale of the Cosmote shares. Currency gains in the first quarter of 2003 were largely due to hedging instruments related to payment of taxes in 2003 related to gains from the sale of VIAG Interkom.

•		Net gains on financial items in the first quarter of 2004 were mainly due to the sale of Telenor’s remaining shares in Cosmote. Net losses and write-downs on financial items in the first quarter of 2003 were due to write-downs of shares in Expert ASA and of shares owned by Telenor Venture.

Taxes

•		The tax rate in Norway is 28%. The effective tax rate for the Telenor group for 2004 is estimated to be 34% of profit before taxes and minority interests.

•		The estimated effective tax rate for Telenor for 2004 is higher than 28%, mainly due to higher taxes on foreign companies, including deferred tax on retained earnings and amortization of goodwill on which deferred tax assets have not been recognized. The actual effective tax rate for the year may deviate from the estimated rate.

•

On 26 March 2004, the Norwegian government issued and submitted to the Norwegian parliament (Storting) a consultation paper outlining certain proposals for a future tax reform. The main proposals relating to the taxation of companies provide for a tax exemption on dividend income and a tax exemption on capital gains deriving from the disposal of shares. As a result of such exemptions, capital losses deriving from disposals of shares would not be tax deductible. If the government’s proposals receive sufficient support in the Storting, the government might submit draft legislation relating to the proposed tax reform to the Storting in the fall of 2004, in which case the tax exemptions described above could become effective from the fiscal year commenced on 1 January 2004. Such tax changes may affect the income tax expenses for Telenor.

Balance sheet and cash flow

•		Total assets increased by NOK 7.2 billion compared to the end of 2003, primarily due to the consolidation of Sonofon. This also affected the separate balance sheet items.

•		Net interest-bearing liabilities increased by NOK 1.5 billion from the end of 2003 to NOK19.3 billion at the end of the first quarter of 2004. The acquisition of the remaining 46.5% ownership interest in Sonofon increased net interest-bearing liabilities by approximately NOK 6.9 billion, of which approximately NOK 3.7 billion was payment for the shares. Beside these effects, net interest-bearing liabilities decreased due to the proceeds of approximately NOK 3.1 billion from the sale of shares in Cosmote and from cash flow from operations, partially offset by capital expenditure and the repurchase of Telenor’s own shares for an amount of NOK 0.6 billion in the first quarter of 2004. Currency fluctuations increased net interest-bearing liabilities measured in Norwegian Kroner by approximately NOK 0.2 billion compared to the end of 2003.

•		Minority interests increased compared to the end of 2003 primarily due to net income from Kyivstar, GrameenPhone and DiGi.Com and due to currency fluctuations.

•		Translation adjustments were positively affected by NOK 644 million compared to the end of 2003 due to the weakening of the Norwegian Krone in the quarter, of which the Hungarian Forint had the largest effect.

Disputes

•		In March 2004, Tele2 Norge AS (Tele2) filed a complaint against Telenor Mobil AS before the Conciliation Board of Baerum (this is the first step in Norwegian civil court proceedings and if no settlement is reached between the parties the case will be transferred to the competent court) claiming reimbursement of alleged excessive prices charged by Telenor Mobil pursuant to its service provider agreement with Tele2. Tele2 claims that these prices have not been set in accordance with the requirements for cost-oriented pricing and has sought reimbursement of the difference between the actual prices charged and cost-oriented prices. The claim is for NOK 113 million plus interests. Telenor is contesting the claim.

•		Please refer to note 24 to Telenor’s annual report for 2003 for more information about legal proceedings.

US GAAP

•

Telenor had net income in accordance with Generally Accepted Accounting Principles in the United States (US GAAP) of NOK 2.991 million in the first quarter of 2004 compared to net income in accordance with Norwegian accounting principles of NOK 2,801 million. The main reason for the difference is that goodwill is not amortized according to US GAAP, but is subject to an annual impairment test.

OUTLOOK FOR 2004

•		Telenor in general confirms its expectations for 2004 as presented in Telenor’s report for the fourth quarter of 2003. Overall, excluding special items we expect a positive development in Telenor’s results compared to 2003.

•		Continued growth in revenues is expected, driven by the international mobile operations and the consolidation of Sonofon.

•		The EBITDA margin is expected to be approximately in line with 2003, excluding special items. This include consolidation of Sonofon, expected increase in sales and marketing expenses in a number of our mobile operations as well as operating expenses related to the establishment of mobile operations in Pakistan.

•		Capital expenditure is expected to be higher than in 2003 due to the purchase of satellite capacity, the consolidation of Sonofon, investments in new mobile technology in Norway, and investments in Pakistan, including license costs. In addition, the increase in subscriptions in some of the international mobile companies may result in Telenor accelerating certain network investments.

•		The sale of the Operating service division from the business area Fixed to EDB Business Partner is expected to have a small negative effect on Fixed — Norway’s revenues. This transaction is expected to have a limited effect on the results for the Telenor Group for 2004, excluding special items.

The unaudited interim consolidated financial statements according to Norwegian accounting principles have been prepared on a basis consistent with Telenor’s financial statements as of year-end 2003, and in accordance with the Norwegian accounting standard for interim reporting.

The accounts submitted with the report have not been audited. This report contains statements regarding the future in connection with Telenor’s growth initiatives, profit figures, outlook, strategies and objectives. In particular, the section “Outlook for 2004” contains forward-looking statements regarding the group’s expectations. All statements regarding the future are subject to inherent risks and uncertainties, and many factors can lead to actual profits and developments deviating substantially from what has been expressed or implied in such statements. These factors include the risk factors relating to Telenor’s activities described in Telenor’s Annual Report 2003 on Form 20-F filed with the Securities and Exchange Commission in the USA under the headings “Cautionary Statement Regarding Forward-Looking Statements” and “Risk Factors” (available at www.telenor.com/ir/).

Oslo, 4 May 2004
The Board of Directors of Telenor ASA

Profit and loss statement


Telenor group	1st quarter						Year
(NOK in millions except net income per share)	2004			2003			2003
Revenues		14,276			12,602			52,889
Gains on disposal of fixed assets and operations		8			4			232
Total revenues		14,284			12,606			53,121

Costs of materials and traffic charges		3,652			3,160			13,094
Own work capitalized		(124	)		(152	)		(571	)
Salaries and personnel costs		2,528			2,473			9,561
Other operating expenses		3,210			2,937			12,506
Losses on disposal of fixed assets and operations		2			11			229
Depreciation and amortization		2,731			2,686			10,597
Write-downs		3			16			145
Total operating expenses		12,002			11,131			45,561

Operating profit		2,282			1,475			7,560

Associated companies		133			(34	)		1,231
Net financial items		2,259			(394	)		(1,365	)
Profit before taxes and minority interests		4,674			1,047			7,426

Taxes		(1,589	)		(387	)		(2,376	)
Minority interests		(284	)		(63	)		(490	)
Net income		2,801			597			4,560

Net income per share in NOK — basic and diluted		1.58			0.34			2.57

US GAAP
Net income		2,991			687			5,036
Net income per share in NOK — basic and diluted		1.69			0.39			2.84

BALANCE


Telenor group
(NOK in millions)	31.03.2004			31.03.2003			31.12.2003
Deferred tax assets		2,541			4,702			3,850
Goodwill		14,721			9,978			9,224
Intangible assets		9,405			6,722			5,536
Tangible assets		37,835			38,804			35,722
Associated companies		6,663			9,908			10,166
Other financial assets		2,553			4,046			3,848

Total fixed assets		73,718			74,160			68,346

Other current assets		10,742			10,578			9,819
Cash and interest-bearing investments		8,858			6,228			7,945

Total current assets		19,600			16,806			17,764

Total assets		93,318			90,966			86,110

Paid-in equity		28,712			29,285			29,311
Other equity		12,779			7,865			9,978
Cumulative translation adjustments		(1,408	)		(2,311	)		(2,052	)

Shareholders equity		40,083			34,839			37,237

Minority interests		3,974			3,884			3,646

Total equity and minority interests		44,057			38,723			40,883

Provisions		2,884			1,007			1,645
Long-term interest-bearing liabilities		27,088			28,840			25,376
Long-term non-interest-bearing liabilities		753			648			754

Total long-term liabilities		27,841			29,488			26,130

Short-term interest-bearing liabilities		1,067			3,527			386
Short-term non-interest-bearing liabilities		17,469			18,221			17,066

Total short-term liabilities		18,536			21,748			17,452

Total equity and liabilities		93,318			90,966			86,110

CASH FLOW STATEMENT


Telenor group	1st quarter						Year
(NOK in millions)	2004			2003			2003
Profit before taxes and minority interests		4,674			1,047			7,426
Taxes paid		(168	)		(65	)		(3,283	)
Net (gains) losses including write-downs of financial items		(2,596	)		93			(76	)
Depreciation, amortization and write-downs		2,734			2,702			10,742
Associated companies		(133	)		34			(1,231	)
Difference between expensed and paid pensions		137			(129	)		134
Currency (gains) losses not relating to operating activities		35			(154	)		(78	)
Change in other accruals		(248	)		(541	)		42
Net cash flow from operating activities		4,435			2,987			13,676

Payments on purchase of tangible and intangible assets		(1,551	)		(1,406	)		(6,536	)
Payments on purchase of subsidiaries and associated companies, net of cash received		(4,424	)		(12	)		(506	)
Proceeds from sale of tangible and intangible assets and businesses, net of cash payed		211			174			2,850
Proceeds from sale of and payments for other investments		3,077			(171	)		738
Net cash flow from investment activities		(2,687	)		(1,415	)		(3,454	)

Proceeds and payments interest-bearing liabilities		(277	)		(907	)		(7,022	)
Proceeds and payments from issuance of shares incl. from/to minority interests in subsidiaries		7			—			25
Share repurchase		(620	)		—			—
Payment of dividends		—			—			(890	)
Net cash flow from financing activities		(890	)		(907	)		(7,887	)

Effect on cash and cash equivalents of changes in foreign exchange rates		75			79			45
Net change in cash and cash equivalents		933			744			2,380

Cash and cash equivalents 01.01.		7,644			5,264			5,264
Cash and cash equivalents by the end of the period		8,577			6,008			7,644

THE BUSINESS AREAS FIRST QUARTER


	Revenues 1)						of which external 1)				EBITDA						Operating profit (loss)						Associated companies						Net financial items						Profit (loss) before taxes and minority interests
(NOK in millions)	2004			2003			2004		2003		2004			2003			2004			2003			2004			2003			2004			2003			2004			2003
Mobile		7,214			5,388			6,867		5,082		2,816			2,195			1,506			1,112			181			22			2,096			(737	)		3,783			397
Fixed		4,940			5,032			4,509		4,646		1,620			1,592			692			542			(5	)		2			(170	)		(222	)		517			322
Broadcast		1,306			1,138			1,271		1,095		348			204			110			(73	)		7			(16	)		(137	)		(232	)		(20	)		(321	)
EDB Business Partner		1,036			1,058			805		804		128			95			42			2			—			(1	)		(16	)		(17	)		26			(16	)
Other business units		894			1,071			765		926		141			106			33			(13	)		(45	)		(40	)		(16	)		(105	)		(28	)		(158	)
Corporate functions and Group activities		524			549			67		53		(7	)		(7	)		(92	)		(101	)		—			(1	)		502			919			410			817
Eliminations		(1,630	)		(1,630	)		—		—		(30	)		(8	)		(9	)		6			(5	)		—			—			—			(14	)		6

Total		14,284			12,606			14,284		12,606		5,016			4,177			2,282			1,475			133			(34	)		2,259			(394	)		4,674			1,047

Revenues includes gains on disposal of fixed assets and operations

ANALYTICAL INFORMATION


	2002										2003								2004
	Q1		Q2		Q3			Q4			Q1		Q2		Q3		Q4		Q1
Revenues (NOK in millions)		11,563		12,011		12,210			13,042			12,606		13,223		13,491		13,801		14,284
EBITDA excluding gains and losses (NOK in millions)		2,926		3,155		3,778			3,599			4,184		4,448		4,886		4,781		5,016
Operating profit (loss) (NOK in millions)		602		691		488			(2,101	)		1,475		1,612		2,300		2,173		2,282
Profit (loss) before taxes and minority interests (NOK in millions)		31		383		(105	)		(5,445	)		1,047		2,490		2,005		1,884		4,674
Equity ratio including minority interests (%)		49.4		48.2		46.7			41.7			42.6		45.5		48.0		47.0		47.2
Net interest bearing liabilities (NOK in millions)		24,449		25,717		27,645			26,872			26,139		25,317		21,584		17,817		19,297
Net interest bearing liabilities/EBITDA excluding gains and losses last 12 months		2.6		2.5		2.3			2.0			1.8		1.6		1.3		1.0		1.0
Capex (NOK in millions)		1,879		2,161		2,169			2,680			1,230		1,314		1,460		2,450		1,471
Investments in businesses (NOK in millions)		8,875		2,271		493			772			23		268		9		263		3,749
No. of man-years		22,250		21,650		22,350			22,100			21,200		21,150		20,300		19,450		20,600
— of which abroad		7,700		7,800		8,600			8,900			8,700		8,700		8,100		7,450		8,650
MOBILE
Telenor Mobil (Norway)
No. of mobile subscriptions (NMT + GSM) (in thousands)		2,314		2,360		2,409			2,382			2,342		2,330		2,364		2,364		2,378
No. of GSM subscriptions (in thousands)		2,249		2,299		2,352			2,330			2,294		2,285		2,324		2,327		2,346
— of which prepaid (in thousands)		1,051		1,094		1,131			1,115			1,093		1,091		1,120		1,099		1,091
Traffic minutes per GSM subscription per month, generated and terminated		171		185		186			178			178		190		195		189		192
Average revenues per GSM subscription per month in the quarter (ARPU):		334		351		359			340			330		346		354		326		332
— of which contract		481		511		528			492			480		501		519		475		488
— of which prepaid		162		168		171			170			163		172		174		162		154
No. of SMS and content messages (in millions)		391		403		444			454			452		462		500		512		488
Sonofon (Denmark)
No. of mobile subscriptions (in thousands)		—		—		—			—			—		—		—		—		996
— of which prepaid (in thousands)		—		—		—			—			—		—		—		—		250
Traffic minutes per GSM subscription per month, generated and terminated		—		—		—			—			—		—		—		—		165
Average revenues per GSM subscription per month in the quarter (ARPU):		—		—		—			—			—		—		—		—		270
— of which contract		—		—		—			—			—		—		—		—		313
— of which prepaid		—		—		—			—			—		—		—		—		135
No. of SMS and content messages (in millions)		—		—		—			—			—		—		—		—		240
Mobile Sweden
No. of mobile subscriptions (in thousands)		—		—		—			—			52		59		65		81		84
— of which prepaid (in thousands)		—		—		—			—			26		23		28		44		48
Traffic minutes per GSM subscription per month, generated and terminated		—		—		—			—			28		41		67		76		80
Average revenues per GSM subscription per month in the quarter (ARPU):		—		—		—			—			119		160		207		199		188
— of which contract		—		—		—			—			194		248		311		294		295
— of which prepaid		—		—		—			—			44		49		56		105		105
No. of SMS and content messages (in millions)		—		—		—			—			3		3		5		8		8
Pannon (Hungary)
No. of mobile subscriptions (in thousands)		2,001		2,146		2,311			2,450			2,514		2,514		2,564		2,618		2,596
— of which prepaid (in thousands)		1,446		1,596		1,767			1,910			1,989		1,981		2,019		2,023		1,977
Traffic minutes per GSM subscription per month, generated and terminated		113		115		112			112			104		110		113		116		111
Average revenues per GSM subscription per month in the quarter (ARPU):		182		184		177			177			153		165		170		173		169
— of which contract		383		391		401			415			386		414		416		412		396
— of which prepaid		97		98		94			100			86		92		97		99		94
DiGi.Com (Malaysia)
No. of mobile subscriptions (100% in thousands)		1,159		1,284		1,454			1,616			1,803		1,946		2,055		2,207		2,416
— of which prepaid (100% in thousands)		1,044		1,176		1,351			1,519			1,708		1,850		1,953		2,101		2,301
Traffic minutes per GSM subscription per month, generated and terminated		197		189		185			185			177		175		177		176		167
Average revenues per GSM subscription per month in the quarter (ARPU):		169		158		138			145			123		111		117		117		116
— of which contract		313		331		312			352			331		336		367		357		358
— of which prepaid		150		142		124			131			112		100		105		105		104
Kyivstar (Ukraine)
No. of mobile subscriptions (100% in thousands)		—		—		1,659			1,856			2,012		2,205		2,512		3,037		3,221
— of which prepaid (100% in thousands)		—		—		1,283			1,472			1,614		1,768		2,037		2,503		2,675
Traffic minutes per GSM subscription per month, generated and terminated		—		—		50			49			43		52		59		73		69
Average revenues per GSM subscription per month in the quarter (ARPU):		—		—		113			102			81		92		106		95		87
— of which contract		—		—		194			202			167		176		204		201		194
— of which prepaid		—		—		73			70			54		66		74		70		62
GrameenPhone (Bangladesh)
No. of mobile subscriptions (100% in thousands)		550		625		704			769			835		928		1,047		1,141		1,520
— of which prepaid (100% in thousands)		353		424		501			563			631		725		820		899		1,258
Traffic minutes per GSM subscription per month, generated and terminated		308		297		288			298			309		312		328		320		322
Average revenues per GSM subscription per month in the quarter (ARPU):		191		173		167			155			133		136		143		130		123
— of which contract		311		297		286			303			283		295		337		327		342
— of which prepaid		118		104		100			95			81		89		90		76		72
Associated companies
No. of mobile subscriptions (100% in thousands)		12,424		14,425		14,814			16,116			17,158		15,105		17,035		19,478		21,028
FIXED — Norway
Retail market
No. of PSTN subscriptions (in thousands)		1,522		1,497		1,480			1,467			1,449		1,427		1,381		1,308		1,248
No. of ISDN subscriptions (lines in thousands)		1,803		1,818		1,818			1,828			1,816		1,800		1,755		1,682		1,600
PSTN/ISDN generated traffic (mill. minutes)		4,702		4,392		3,864			4,387			4,268		3,876		3,454		3,787		3,725
Market share of PSTN/ISDN generated traffic (%)		73		73		73			72			70		70		69		69		69
No. of Online subscriptions residential market (in thousands)		370		359		347			337			315		304		301		294		286
No. of ADSL subscriptions residential market (in thousands)		42		53		64			90			114		124		139		163		191
No. of ADSL subscriptions business market Norway (in thousands)		1		2		3			4			7		10		11		14		17
Wholesale market
No. of PSTN subscriptions (in thousands)		—		—		—			—			11		12		42		104		151
No. of ISDN subscriptions (lines in thousands)		—		—		—			—			14		17		52		126		188
No. of ADSL subscriptions (in thousands)		5		6		8			15			21		31		41		56		76
No. of LLUB (in thousands)		18		25		32			42			53		59		68		80		96
BROADCAST
No. of television subscribers in the Nordic region (in thousands)
— Subscribers with satellite dish		614		646		664			701			713		708		726		763		778
— Cable TV subscribers		557		559		561			571			575		590		594		604		605
— Households in small antenna TV-networks		1,140		1,126		1,129			1,133			1,130		1,049		1,100		1,098		1,132

Special items


	4th quarter						Year
(NOK in millions)	2004			2003			2003
EBITDA		5,016			4,177			18,302
Gains on disposal of fixed assets and operations		(8	)		(4	)		(232	)
Losses on disposal of fixed assets and operations		2			11			229
EBITDA excluding gains and losses		5,010			4,184			18,299

Expenses for workforce reductions, loss contracts and exit from activities
Mobile		4			—			(21	)
Fixed		18			6			6
Broadcast		—			2			7
EDB Business Partner		—			—			223
Other business units		1			1			38
Corporate functions and Group activities		2			(3	)		34
Eliminations		—			—			—
Total workforce reductions, loss contracts and exit from activities		25			5			287

Adjusted EBITDA		5,035			4,189			18,586

Write-downs
Mobile		—			8			35
Fixed		—			—			24
Broadcast		—			4			18
EDB Business Partner		—			4			28
Other business units		3			—			37
Corporate functions and Group activities		—			—			3
Eliminations		—			—			—
Total write-downs		3			16			145

Adjusted operating profit		2,304			1,503			7,989

Special items associated companies
(Gains) losses on disposal of ownership interests		—			(66	)		(1,507	)
Other write-downs associated companies		—			—			25
Total special items associated companies		—			(66	)		(1,482	)

Net (gains) losses and write-downs financial items		(2,591	)		86			(73	)
Adjusted profit (loss) before taxes and minority interests		2,105			1,095			6,300

Reconciliations


	4th quarter						Year
(NOK in millions)	2004			2003			2003
Net income (loss)		2,801			597			4,560
Minority interests		284			63			490
Taxes		1,589			387			2,376
Profit (loss) before taxes and minority interests		4,674			1,047			7,426
Net financial items		(2,259	)		394			1,365
Associated companies		(133	)		34			(1,231	)
Operating profit (loss)		2,282			1,475			7,560
Depreciation and amortization		2,731			2,686			10,597
Write-downs		3			16			145
EBITDA		5,016			4,177			18,302

Net (gains) losses on disposal of fixed assets and operations		(6	)		7			(3	)
EBITDA excluding gains and losses		5,010			4,184			18,299

Expenses for workforce reductions, loss contracts and exit of activities		25			5			287
Adjusted EBITDA		5,035			4,189			18,586

Operating profit (loss)		2,282			1,475			7,560
Write-downs		3			16			145
Net (gains) losses on disposal of fixed assets and operations		(6	)		7			(3	)
Expenses for workforce reductions, loss contracts and exit of activities		25			5			287
Adjusted operating profit (loss)		2,304			1,503			7,989

Associated companies		133			(34	)		1,231
Total special items associated companies		—			(66	)		(1,482	)
Adjusted associated companies		133			(100	)		(251	)

Profit (loss) before taxes and minority interests		4,674			1,047			7,426
Write-downs		3			16			145
Net (gains) losses on disposal of fixed assets and operations		(6	)		7			(3	)
Expenses for workforce reductions, loss contracts and exit of activities		25			5			287
Special items associated companies		—			(66	)		(1,482	)
Net (gains) losses and write-downs financial items		(2,591	)		86			(73	)
Adjusted profit (loss) before taxes and minority interests		2,105			1,095			6,300

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


		Telenor ASA
		By:		/s/ Torstein Moland Name: Torstein Moland Title: CFO

Date: 6^th May, 2004

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