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: 15th February 2007, for 4^th Quarter 2006

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):

Compared to 2005, Telenor’s revenues increased by 37 per cent in 2006, to NOK 91.1 billion. Profit after taxes and minority interests more than doubled compared to 2005, reaching NOK 15.9 billion. In the fourth quarter of 2006, revenues increased by 30 per cent compared to the same period last year, reaching NOK 24.5 billion. The EBITDA margin in the fourth quarter of 2006 was 33.4 per cent, compared to 34.9 per cent in the fourth quarter of 2005.

HIGHLIGHTS FOURTH QUARTER 2006:

Revenue growth of 30% — underlying growth of 11% 10 million new mobile subscriptions EBITDA margin of 33% Proposed dividend per share of NOK 2.50 for 2006

OUTLOOK FOR 2007

Based upon the current group structure: In 2007 we expect a growth in reported revenues of between 15% and 20%. The EBITDA margin before other income and expenses is expected to be around 35%. We expect capital expenditure as a proportion of revenues to be around 20% in 2007, mainly driven by high subscription growth within our mobile operations in emerging markets. The effects from the introduction of an interconnect regime in Thailand, both when it comes to timing as well as magnitude, represents the main uncertain factor related to Telenor`s outlook for 2007. A growing share of Telenor`s revenues and profits is derived from operations outside Norway. Currency fluctuations may to an increasing extent influence the reported figures in Norwegian Krone. Political risk, including regulatory conditions, may also influence the profits. We expect seasonal variations between the quarters.

KYIVSTAR FIGURES BASED ON ESTIMATES

There are litigation and arbitration proceedings pending in New York involving Kyivstar`s shareholders relating to Kyivstar’s shareholders agreement. Further proceedings have recently been brought in Ukrainian courts by Storm LLC (43.5% shareholder in Kyivstar) and a related party challenging the authority of the company to appoint auditors. An injunction from Krasnolutsk City Court of Lugansk Region has been issued that, among other things, purports to prohibit Kyivstar`s management from providing financial information to Kyivstar’s international auditors, the company`s shareholders, including Telenor, from using financial information already provided by Kyivstar and Kyivstar and Telenor’s auditors from carrying out any audit work in relation to Kyivstar’s year-end IFRS financial statements. Telenor is contesting these actions. As a result of not having the ability to obtain relevant financial information from Kyivstar, the information contained in Telenor`s fourth quarter results relating to Kyivstar is based on estimated figures. Actual results could differ from these estimates.

TABLE OF CONTENTS


SIGNATURES

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/ Trond Westlie

		Name: Trond Westlie
				(sign.)
		Title:		CFO

Date: 15^th February, 2007

Q4 2006

In the fourth quarter of 2006, Telenor’s revenues amounted to NOK 24.5 billion, which was an increase of 30% compared to the fourth quarter of 2005. Profit before taxes was NOK 5.9 billion.

Record high subscription growth

Highlights fourth quarter 2006:

•		Revenue growth of 30% – underlying growth of 11%

•		10 million new mobile subscriptions

•		EBITDA margin of 33%

•		Proposed dividend per share of NOK 2.50 for 2006

“2006 has been an outstanding year with high growth in revenues and profits, significantly improving our operating cash flow. The number of subscriptions in our mobile operations increased by more than 30 million, reaching 115 million. I’m proud to see that our consistent strategy of investing in emerging markets combined with a strengthened position in the Nordic has led to such strong results. Building on this strong position, we expect the high underlying growth to continue in 2007.

We have had another quarter of record-high subscription growth, mainly driven by impressive net additions in Kyivstar and Telenor Pakistan. Operationally and financially our mobile operations have performed very well. However, the quarterly results from Fixed Norway and Broadcast have been affected by higher costs related to operational conditions and marketing activities.

During 2006, the Group’s new visual identity was adopted by ten of our operations in eight countries. The distinctive brand reflects our unique approach, utilizing global scale combined with local market expertise and decision making. With this highly experienced and dedicated organisation, I am confident that we are well prepared to meet future opportunities and challenges”, said Jon Fredrik Baksaas, President and CEO.

Key Figures *


	4th quarter				Year
(NOK in millions except earnings per share)	2006		2005		2006		2005

Revenues		24 535		18 860		91 077		66 566
EBITDA before other income and expenses		8 186		6 678		32 992		23 530
EBITDA before other income and expenses/Revenues (%)		33.4		35.4		36.2		35.3
Adjusted operating profit		4 110		3 559		18 271		12 249
Adjusted operating profit/Revenues (%)		16.8		18.9		20.1		18.4
Profit after taxes and minority interests (Net income)		6 184		1 695		15 899		7 646

Earnings per share from total operations, basic, in NOK		3.68		1.00		9.43		4.47
Capex		6 095		6 436		19 036		16 439
Investments in businesses		20		2 720		22 124		8 858
Net interest-bearing liabilities						43 210		30 858

Extract from outlook for 2007

For 2007, Telenor expects a revenue growth of 15% to 20% with an EBITDA margin before other income and expenses of around 35%. Capital expenditure, as a proportion of revenues, is expected to be around 20%.

Please refer to page 9 for the full outlook for 2007, and page 20 for definitions.


*)		Profit and Loss figures for 2005 and previous quarters in 2006 have been reclassified. Please refer to ‘Discontinued Operations’ on page 9 and ‘Satellite Services’ on page 8 for more information.

Telenor’s Operations

Unless otherwise stated, the statements below are related to Telenor’s development in the fourth quarter of 2006 compared to the fourth quarter of 2005.

Nordic Mobile Operations

Telenor Mobile – Norway


	4th quarter					Year
(NOK in millions)	2006			2005		2006		2005

Subscription and traffic		2 125			2 120		8 582		8 148
Interconnection revenues		452			454		1 815		1 754
Mobile revenues company’s subscriptions		2 577			2 574		10 397		9 902

Other mobile revenues		530			526		2 191		1 825
Total mobile revenues		3 107			3 100		12 588		11 727

Non- mobile revenues		119			135		474		516
Total revenues¹⁾		3 226			3 235		13 062		12 243

¹⁾Of which internal revenues		215			281		959		1 171

EBITDA		1 293			1 186		5 494		4 471
Depreciation and amortization²⁾		216			222		853		889
Write- downs		4			2		37		16
Operating profit		1 073			962		4 604		3 566

²⁾ Of which amortization of Telenor’s net excess values		(3	)		1		—		4

EBITDA/Total revenues (%)		40.1			36.7		42.1		36.5
Operating profit/Total revenues (%)		33.3			29.7		35.2		29.1
Capex		272			461		764		1 218
ARPU – monthly (NOK)		316			317		319		309
No. of subscriptions (in thousands)							2 723		2 731

•		The number of subscriptions increased by 12,000, while the estimated market share was 55%, in line with the previous quarter.

•		ARPU remained stable. The effects from increased average usage (AMPU) were offset by lower average prices.

•		Total mobile revenues remained stable. Price reductions and initiatives to encourage loyalty have led to lower revenue growth.

•		The increase in EBITDA margin was mainly due to lower costs related to sales and marketing activities, partially due to reduced costs of acquiring customers.

•		In the fourth quarter of 2005, capital expenditure included renewal of a GSM licence. Adjusted for this, capital expenditure remained stable.

Sonofon – Denmark


	4th quarter				Year
(NOK in millions)	2006		2005		2006		2005

Subscription and traffic		693		595		2 638		2 361
Interconnection revenues		355		347		1 368		1 300
Mobile revenues company’s subscriptions		1 048		942		4 006		3 661

Other mobile revenues		162		156		628		638
Total mobile revenues		1 210		1 098		4 634		4 299

Non- mobile revenues		263		236		967		892
Total revenues ¹⁾		1 473		1 334		5 601		5 191

¹⁾ Of which internal revenues		63		34		196		132

EBITDA		378		308		1 380		1 176
Depreciation and amortization²⁾		291		296		1 128		1 285
Operating profit (loss)		87		12		252		(109	)

²⁾ Of which amortization of Telenor’s net excess values		139		133		546		555

EBITDA/Total revenues (%)		25.7		23.1		24.6		22.7
Operating profit/Total revenues (%)		5.9		0.9		4.5	nm
Capex		251		757		698		1 062
Investments in businesses		—		4		—		4
ARPU – monthly (NOK)		255		246		252		243
No. of subscriptions (in thousands)						1 398		1 284

Compared to the fourth quarter of 2005, the Norwegian Krone depreciated against the Danish Krone by approximately 4% in the fourth quarter of 2006.

•		The number of subscriptions increased by 56,000, while Sonofon’s market share increased by 0.5 percentage point to 24% *⁾ compared to the previous quarter.

•		ARPU in local currency remained stable. The effects from increased average usage were offset by lower average prices.

•		Total revenues in local currency increased by 7% primarily due to a higher customer base.

•		EBITDA margin increased primarily driven by higher revenues and improved gross margin, partially due to lower costs because Sonofon now is using its own fibre network. EBITDA measured in local currency increased by 19%.

•		In the fourth quarter of 2005, capital expenditure included investments in a UMTS license. Adjusted for this, capital expenditure increased, primarily related to the roll-out of the UMTS network.

^*)		New methodology based on official statistics

Telenor Mobile – Sweden


	4th quarter						Year
(NOK in millions)	2006			2005			2006			2005

Subscription and traffic		1 083			26			4 007			130
Interconnection revenues		255			12			915			60
Mobile revenues company’s subscriptions		1 338			38			4 922			190

Other mobile revenues		118			10			436			54
Total mobile revenues		1 456			48			5 358			244

Non-mobile revenues		161			—			540			—
Total revenues ¹⁾		1 617			48			5 898			244

¹⁾Of which internal revenues		42			24			159			124

EBITDA		326			(309	)		1 108			(476	)
Depreciation and amortization ²⁾		405			—			1 593			—
Write-downs		—			—			6			—
Operating loss		(79	)		(309	)		(491	)		(476	)

²⁾ Of which amortization of Telenor’s net excess values		68			—			444			—

EBITDA/Total revenues (%)		20.2		nm				18.8		nm
Capex		224			—			608			—
Investments in businesses		(241	)		—			7 506			—
ARPU – monthly (NOK)		260			136			251			158
No. of subscriptions (in thousands)								1 733			95

Mobile Sweden is consolidated with effect from 5 January 2006. Compared to the fourth quarter of 2005, the Norwegian Krone depreciated against the Swedish Krone by approximately 8% in the fourth quarter of 2006.

The following comments are related to the fourth quarter of 2006-compared to the third quarter of 2006.

•		The number of subscriptions increased by 25,000, while the estimated market share remained stable at 17% compared to the previous quarter.

•		Mobile revenues from own subscriptions in local currency increased by 2% as a result of increased usage, partially offset by lower average prices. Total revenues remained stable.

•		The reduction in EBITDA margin was mainly due to higher costs related to sales and marketing activities including the introduction of the Glocalnet mobile brand. This was partially offset by reversal of previously expensed costs for workforce reductions.

•		The fourth quarter of 2005 included a loss on the MVNO agreement of NOK 291 million.

•		In the fourth quarter of 2006, investments in businesses for 2006 were reduced following the final settlement of the purchase of Vodafone.

Central Eastern European Operations

Kyivstar – Ukraine


	4th quarter				Year
(NOK in millions)	2006		2005		2006		2005

Subscription and traffic		2 347		1 720		8 369		5 122
Interconnection revenues		616		606		2 312		1 888
Mobile revenues company’s subscriptions		2 963		2 326		10 681		7 010

Other mobile revenues		43		33		211		158
Total mobile revenues		3 006		2 359		10 892		7 168

Non-mobile revenues		16		31		64		104
Total revenues ¹⁾		3 022		2 390		10 956		7 272

¹⁾ Of which internal revenues		3		1		9		6

EBITDA		1 661		1 359		6 516		4 050
Depreciation and amortization ²⁾		430		325		1 585		1 209
Write-downs		18		15		31		15
Operating profit		1 213		1 019		4 900		2 826

²⁾ Of which amortization of Telenor’s net excess values		24		24		94		93

EBITDA/Total revenues (%)		55.0		56.9		59.5		55.7
Operating profit/ Total revenues (%)		40.1		42.6		44.7		38.9
Capex		1 039		890		3 631		3 650
ARPU – monthly (NOK)		52		64		54		61
No. of subscriptions (100% in thousands)						21 510		13 925

At the end of the fourth quarter of 2006, Telenor’s ownership interest in Kyivstar was 56.5%. Compared to the fourth quarter of 2005, the Norwegian Krone appreciated against the Ukrainian Hryvnia by approximately 4% in the fourth quarter of 2006.

•		The strong growth in the Ukrainian market continued in the fourth quarter. The number of subscriptions in Kyivstar increased by 3.8-million during the fourth quarter of 2006 and by 7.6 million compared to the fourth quarter of 2005.

•		Kyivstar maintained its market leader position with an estimated market share of 43%, a reduction of 0.5 percentage point compared to the previous quarter.

•		ARPU in local currency decreased by 15% mainly due to lower average prices and seasonal campaigns.

•		Total revenues in local currency increased by 31%, primarily related to the growth in the number of subscriptions, partially offset by reduction in ARPU.

•		EBITDA in local currency increased by 26% as a result of higher- revenues, while the EBITDA margin decreased due to higher costs, including costs related to sales and marketing activities.

•		Depreciation and amortization increased as a result of increased capital expenditure in the preceding quarters.

•		Higher capital expenditure was mainly related to increased capacity to accommodate the subscription growth.

•		There are litigation and arbitration proceedings pending in New York involving Kyivstar’s shareholders relating to Kyivstar’s shareholders agreement. Further proceedings have recently been brought in Ukrainian courts by Storm LLC (43.5% shareholder in Kyivstar) and a related party challenging the authority of the company to appoint auditors. An injunction from Krasnolutsk City Court of Lugansk Region has been issued that, among other things, purports to prohibit Kyivstar’s management from providing financial information to Kyivstar’s international auditors, the company’s shareholders, including Telenor, from using financial information already provided by Kyivstar and Kyivstar and Telenor’s auditors from carrying out any audit work in relation to Kyivstar’s year-end IFRS financial statements. Telenor is contesting these actions. As a result of not having the ability to obtain relevant financial information from Kyivstar, the information contained in Telenor’s fourth quarter results relating to Kyivstar is based on estimated figures. Actual results could differ from these estimates.

Pannon – Hungary


	4th quarter				Year
(NOK in millions)	2006		2005		2006		2005

Subscription and traffic		1 030		960		3 809		3 768
Interconnection revenues		453		431		1 668		1 735
Mobile revenues company’s subscriptions		1 483		1 391		5 477		5 503

Other mobile revenues		30		20		133		144
Total mobile revenues		1 513		1 411		5 610		5 647

Non-mobile revenues		134		154		341		414
Total revenues ¹⁾		1 647		1 565		5 951		6 061

¹⁾ Of which internal revenues		6		4		14		10

EBITDA		517		534		2 205		2 185
Depreciation and amortization ²⁾		294		285		1 078		1 171
Write-downs		26		4		59		7
Operating profit		197		245		1 068		1 007

²⁾ Of which amortization of Telenor’s net excess values		86		84		328		345

EBITDA/Total revenues (%)		31.4		34.1		37.1		36.1
Operating profit/Total revenues (%)		12.0		15.7		17.9		16.6
Capex		145		261		619		763
ARPU – monthly (NOK)		161		162		154		162
No. of subscriptions (in thousands)						3 153		2 929

Compared to the fourth quarter of 2005, the Norwegian Krone depreciated against the Hungarian Forint by approximately 1% in the fourth quarter of 2006.

•		The number of subscriptions increased by 172,000 achieving the highest net additions amongst the operators in the last quarter of 2006.

•		Pannon’s market share increased to around 34% compared to the previous quarter.

•		Total mobile revenues in local currency increased by 6% mainly due to a higher share of contract subscriptions and higher inter-connection revenues due to growth in incoming traffic.

•		The EBITDA margin declined mainly due to higher interconnection costs and sales and marketing related costs. The fourth quarter of 2006 included a provision for Universal Services Obligations for 2003, while the fourth quarter of 2005 included a reversal of previously expensed Universal Service Obligations for 2004. Adjusted for this, the EBITDA margin decreased by approximately 1 percentage point.

•		Write-downs include obsolete core and radio network assets as a result of converting the network to EDGE capability.

•		Capital expenditure decreased due to reduced network roll-out.

Telenor – Serbia


	4th quarter				Year
(NOK in millions)	2006		2005		2006		2005

Total revenues		551		—		726		—
EBITDA		206		—		309		—
Operating profit¹⁾		46		—		132		—

Capex		114		—		163		—
Investments in businesses		1		—		11 981		—
No. of subscriptions (in thousands)						2 464		—
¹⁾Includes amortization of Telenor’s net excess values		32		—		37		—

Telenor – Serbia is consolidated from 1 September 2006 and is part of ‘Other mobile operations’ in the table on page 17. Compared to the third quarter of 2006, the Norwegian Krone depreciated against the Serbian Dinar by approximately 8% in the fourth quarter of 2006.

•		In the fourth quarter of 2006 the number of subscriptions increased by 180,000 leading to an-estimated market share of around 41%.

•		The EBITDA margin of 37% reflects an increased activity level, including sales and marketing activities, compared to the previous quarter.

•		Since the acquisition, several activities related to the turnaround of the operation have been implemented, including establishing-distribution channels, re-branding and launch of marketing campaigns. Most of these activities will continue in 2007.

Promonte – Montenegro


	4th quarter				Year
(NOK in millions)	2006		2005		2006		2005

Total revenues		148		112		612		519
EBITDA		65		47		307		260
Operating profit ¹⁾		24		7		151		95

Capex		41		21		76		38
No. of subscriptions (in thousands)						365		310
¹⁾ Includes amortization of Telenor’s net excess values		20		20		80		80

Compared to the fourth quarter of 2005, the Norwegian Krone depreciated against the Euro, which is the functional currency of Promonte, by approximately 4% in the fourth quarter of 2006. Promonte is part of ‘Other mobile operations’ in the table on page 17.

•		In the fourth quarter of 2006 the number of subscriptions decreased by 114,000, which was mainly related to the end of the tourist season.

•		Total revenues in local currency increased by 26% while EBITDA margin improved by 2 percentage points.

•		An International Public Tender for 3G licences and a third 2G licence was published 11 November 2006, aiming submission of bids by 14 February 2007. Selection of bidders will be made by 15 March 2007. Promonte submitted a bid within the deadline 14 February.

Asian Operations

DTAC – Thailand


	4th quarter				Year
(NOK in millions)	2006		2005		2006		2005

Subscription and traffic		1 991		1 074		7 490		1 074
Interconnection revenues		39		25		146		25
Mobile revenues company’s subscriptions		2 030		1 099		7 636		1 099

Other mobile revenues		109		74		418		74
Total mobile revenues		2 139		1 173		8 054		1 173

Non-mobile revenues		19		18		70		18
Total revenues¹⁾		2 158		1 191		8 124		1 191

¹⁾ Of which internal revenues		11		6		36		6

EBITDA		795		445		2 944		445
Depreciation and amortization ²⁾		385		220		1 413		220
Operating profit		410		225		1 531		225

²⁾ Of which amortization of Telenor’s net excess values		53		35		205		35

EBITDA/Total revenues (%)		36.8		37.4		36.2		37.4
Operating profit/Total revenues (%)		19.0		18.9		18.8		18.9
Capex		737		146		2 450		146
Investments in businesses		—		2 664		116		2 664
ARPU – monthly (NOK)		59		66		61		66
No. of subscriptions (100% in thousands)						11 869		8 677

At the end of the fourth quarter of 2006, Telenor’s economic stake in DTAC was 73.2%. Compared to the third quarter of 2006, the Norwegian Krone depreciated against the Thai Baht by approximately 5% in the fourth quarter of 2006. The preceding table shows figures for DTAC from the time of consolidation, 26 October 2005.

The following comments are made against the third quarter of 2006.

•		DTAC increased the number of its subscriptions by 628,000 and is estimated to have maintained its market share at around 31%.

•		Despite a high increase in average usage, ARPU in local currency declined by 4%, due to lower average prices. Total revenues in local currency increased by 1%, which was primarily driven by the increase in total number of subscriptions.

•		EBITDA margin increased by 1 percentage point. The revenue share, which DTAC is required to pay to the Communications Authorities of Thailand (CAT Telecom) on a material part of its services, increased as scheduled from 20% to 25% from 16 September 2006. The full impact of this increase in the fourth quarter was more than offset by the amendment of access charge payments with interconnection costs (interconnection and transit) to the fixed line operator TOT.


•		Capital expenditure increased following continuous investments in network capacity and network expansion to accommodate the increasing subscription base and usage.

•		The National Telecommunications Commission (NTC) in Thailand has approved DTAC’s Reference Interconnect Offer and, on 4 October 2006, DTAC requested bilateral negotiations with the other fixed and mobile operators in Thailand. On 17 November 2006, DTAC signed an interconnection agreement with the mobile operator True Move, on 30 November 2006 with AIS and on 22 December with the broadband operator Triple T. The interconnection rates between DTAC and AIS / True Move have been set at THB 1 per minute and the companies expect to start billing for traffic in the first quarter of 2007.

•		On 17 November 2006, DTAC informed TOT that the terms in respect to the Access Charge Agreement are no longer enforceable as they are contrary to the law. From 18 November 2006, the access charge agreement has been amended to reflect the new NTC approved Reference Interconnect Offer rates.

DiGi – Malaysia


	4th quarter					Year
(NOK in millions)	2006			2005		2006		2005

Subscription and traffic		1 488			1 198		5 453		3 949
Interconnection revenues		144			159		575		594
Mobile revenues company’s subscriptions		1 632			1 357		6 028		4 543

Other mobile revenues		8			18		82		65
Total mobile revenues		1 640			1 375		6 110		4 608

Non-mobile revenues		59			77		263		324
Total revenues ¹⁾		1 699			1 452		6 373		4 932

¹⁾ Of which internal revenues		1			2		6		4

EBITDA		824			632		2 945		2 142
Depreciation and amortization ²⁾		328			273		1 103		1 038
Write-downs		(1	)		3		7		5
Operating profit		497			356		1 835		1 099

²⁾Of which amortization of Telenor’s net excess values		4			4		15		51

EBITDA/Total revenues (%)		48.5			43.5		46.2		43.4
Operating profit/Total revenues (%)		29.3			24.5		28.8		22.3
Capex		513			574		1 309		1 170
ARPU – monthly (NOK)		96			102		94		98
No. of subscriptions (100% in thousands)							5 312		4 795

At the end of the fourth quarter of 2006, Telenor’s ownership interest in DiGi was 61.0%. Compared to the fourth quarter of 2005, the Norwegian Krone remained stable against the Malaysian Ringgit in the fourth quarter of 2006.

•		Adjusted for the termination of around 500,000 subscriptions following the mandatory prepaid registration in Malaysia, the number of subscriptions increased by 230,000 during the fourth quarter of 2006.

•		ARPU measured in local currency declined by 6% primarily due to lower incoming traffic combined with a reduction in interconnect access prices.

•		Total revenues measured in local currency increased by 17% driven by an 11% increase in the subscription base.

•		EBITDA margin improved by 5 percentage points primarily contributed by higher revenues. A reduction in provision for licence fees for 2006 affected the EBITDA margin positively by approximately 2 percentage points. Measured in local currency, EBITDA increased by 30%.

•		Depreciation and amortization increased primarily due to accelerated depreciation resulting from the re-assessment of assets useful lives with effect from 1 July 2006.

•		Capital expenditure declined mainly due to a higher roll-out volume and completion of capacity upgrades in the fourth quarter of 2005.

Grameenphone – Bangladesh


	4th quarter				Year
(NOK in millions)	2006		2005		2006		2005

Subscription and traffic		1 106		769		3 920		2 741
Interconnection revenues		114		63		359		188
Mobile revenues company’s subscriptions		1 220		832		4 279		2 929

Other mobile revenues		4		6		18		22
Total mobile revenues		1 224		838		4 297		2 951

Non-mobile revenues		5		12		17		19
Total revenues¹⁾		1 229		850		4 314		2 970

¹⁾Of which internal revenues		—		1		1		1

EBITDA		724		455		2 516		1 559
Depreciation and amortization		204		166		680		439
Operating profit		520		289		1 836		1 120


EBITDA/Total revenues (%)		58.9		53.5		58.3		52.5
Operating profit/Total revenues (%)		42.3		34.0		42.6		37.7
Capex		683		1 153		2 023		2 596
ARPU – monthly (NOK)		41		56		44		68
No. of subscriptions (100% in thousands)						10 759		5 542

At the end of the fourth quarter of 2006, Telenor’s ownership interest in Grameenphone was 62.0%. Compared to the fourth quarter of 2005, the Norwegian Krone appreciated against the Bangladeshi Taka by approximately 6% in the fourth quarter of 2006.

•		The number of subscriptions increased by almost 1.4 million in the fourth quarter of 2006 and by 5.2 million from the fourth quarter of 2005.

•		Grameenphone’s estimated market share remained stable at 63%.

•		ARPU in local currency decreased by 22% primarily due to decreasing average prices.

•		Measured in local currency, total revenues increased by 57% mainly due to the subscription growth. This was partially offset by reduction in ARPU.

•		The EBITDA margin increased by 5 percentage points due to higher revenues and reversal of provisions. The fourth quarter of 2005 was positively affected by a change in accounting treatment of operating lease. The normalized EBITDA margin is estimated at 52%.

•		Depreciation and amortization increased as a result of increased capital expenditure, as well as a reduction in useful life for certain assets.

•		Capital expenditure decreased primarily due to the change in accounting treatment of operating lease in the fourth quarter of 2005.

•		From January 2007, the inter-operator mobile call termination price in Bangladesh changed from Taka 0.90 peak time and Taka 0.50 off peak time to a flat rate of Taka 0.66.

Telenor – Pakistan


	4th quarter						Year
(NOK in millions)	2006			2005			2006			2005

Subscription and traffic		394			91			1 002			167
Interconnection revenues		83			45			275			93
Mobile revenues company’s subscriptions		477			136			1 277			260

Other mobile revenues		3			—			7			—
Total mobile revenues		480			136			1 284			260

Non-mobile revenues		6			4			15			5
Total revenues ¹⁾		486			140			1 299			265

¹⁾ Of which internal revenues		4			3			11			11

EBITDA		(47	)		(133	)		(328	)		(572	)
Depreciation and amortization		136			85			449			226
Operating loss		(183	)		(218	)		(777	)		(798	)


Capex		847			496			2 653			1 843
ARPU – monthly (NOK)		28			30			29			19
No. of subscriptions (100% in thousands)								6 661			1 868

Compared to the fourth quarter of 2005, the Norwegian Krone appre-ciated against the Pakistani Rupi by approximately 6% in the fourth-quarter of 2006. Telenor – Pakistan is part of ‘Other mobile operations’ in the table on page 17.

•

Telenor – Pakistan experienced a significant growth in the number of subscriptions with net additions of 2.1 million during this quarter alone and an increase of almost 5 million compared to the fourth quarter of 2005.

•		Telenor – Pakistan’s estimated market share increased significantly by 3 percentage points to 14% from the previous quarter.

•		Despite the high subscription growth, ARPU in local currency increased by 3% compared to the third quarter of 2006.

•		Compared to the third quarter of 2006, total revenues in local-currency increased by 46% mainly due to the subscription growth. EBITDA improved further, mainly due to higher revenues.

•		Capital expenditure was related to the roll-out of the mobile network.

Fixed


	4th quarter						Year
(NOK in millions)	2006			2005			2006			2005

Revenues
Norway		3 867			4 186			15 824			16 867
Other operations		1 145			887			4 167			2 581
Eliminations		(45	)		(48	)		(117	)		(135	)
Total revenues¹⁾		4 967			5 025			19 874			19 313

¹⁾ Of which internal revenues		460			602			1 919			2 173

EBITDA		1 269			1 543			6 066			5 885
Depreciation and amortization²⁾		821			850			3 084			3 236
Write-downs³⁾		57			609			81			587
Operating profit		391			84			2 901			2 062

²⁾Of which amortization of Telenor’s net excess values		73			(6	)		191			66
³⁾ Of which write-downs of Telenor’s net excess values		—			10			—			(24	)

EBITDA/Total revenues (%)		25.5			30.7			30.5			30.5
Operating profit/Total revenues (%)		7.9			1.7			14.6			10.7
Capex		702			1 237			2 523			2 776
Investments in businesses		90			(20	)		628			5 816

Fixed – Norway


	4th quarter					Year
(NOK in millions)	2006		2005			2006		2005

Revenues
Telephony		1 477		1 751			6 308		7 232
xDSL/Internet		611		536			2 339		2 039
Data services		209		238			827		963
Other revenues		323		366			1 280		1 465
Total retail revenues		2 620		2 891			10 754		11 699

Wholesale revenues		1 247		1 295			5 070		5 168
Total revenues ¹⁾		3 867		4 186			15 824		16 867

¹⁾Of which internal revenues		508		623			2 080		2 190

EBITDA		1 150		1 377			5 417		5 701
Depreciation and amortization²⁾		559		692			2 262		2 707
Write-downs³⁾		—		(1	)		13		(25	)
Operating profit		591		686			3 142		3 019

²⁾Of which amortization of Telenor’s net excess values		4		—			4		—
³⁾Of which write-downs of Telenor’s net excess values		—		(2	)		—		(36	)

EBITDA/Total revenues (%)		29.7		32.9			34.2		33.8
Operating profit/Total revenues (%)		15.3		16.4			19.9		17.9
Capex		528		917			1 732		2 169
Investments in businesses		87		—			88		44
No. of subscriptions (in thousands):
Telephony							1 480		1 622
– of which PSTN							965		1 089
– of which ISDN							413		509
– of which VoIP							102		24
xDSL subscriptions							572		475

•		Measured in traffic minutes, Telenor’s estimated market share was 65%, while the estimated market share for xDSL in the retail market was 57%, both in line with the previous quarter.

•		Total revenues decreased by 7.6%. Adjusted for the outsourcing of contractor activities from 1 April 2006, total revenues decreased by 5.5%. Adjusted total revenues for the full year 2006 decreased by 4.6% compared to the full year 2005.

•		Revenues from telephony decreased due to a reduction in the-number of subscriptions, lower traffic volumes and price reductions implemented from 1 September 2006. The number of PSTN/ISDN subscriptions decreased primarily due to migration to VoIP telephony with other fixed network operators, as well as a decrease in the total market. Lower traffic volumes were due to the decrease in the-number of telephony subscriptions and the number of minutes per subscription. The latter was mainly due to migration of traffic from fixed to mobile telephony.

•		Revenues from xDSL/Internet increased due to growth in the number of xDSL subscriptions. This was partially offset by reduction in revenues from dial-up Internet traffic and Internet subscriptions.

•		The decrease in Other revenues was mainly related to lower intra-group sales and lower revenues from large installation contracts.

•		Wholesale revenues, adjusted for the outsourcing of contractor activities from 1 April 2006, increased mainly as a result of growth in the number of subscriptions partially offset by price reductions.

•		The decrease in EBITDA margin was primarily due to decreased gross margin and high costs related to operational conditions in the network, partially offset by lower operating expenses. Total operating expenses declined mainly due to reduction in the number of man-years.

•		The decrease in depreciation and amortization was primarily due to lower capital expenditure in recent years. This was partially offset by increased amortization for expenses associated with transactions that provide the rights to use assets, such as local loop unbundling, and decreased estimated useful life for some IT-systems.

•		Capital expenditure decreased primarily due to the change in accounting treatment of prepaid costs in leases in the fourth quarter of 2005, which increased capital expenditure by NOK 463 million.

Fixed – Other operations


	4th quarter						Year
(NOK in millions)	2006			2005			2006			2005

Revenues
Fixed Sweden		926			676			3 376			2 096
Fixed Denmark		219			164			773			306
Other countries/eliminations		—			47			18			179
Total revenues¹⁾		1 145			887			4 167			2 581

¹⁾Of which internal revenues		(4	)		27			(44	)		118

EBITDA
Fixed Sweden		63			183			400			158
Fixed Denmark		62			49			237			97
Other countries/eliminations		3			(66	)		12			(70	)
Total EBITDA		128			166			649			185

Depreciation and amortization²⁾		262			158			822			528
Write-downs³⁾		57			614			68			617
Operating loss		(191	)		(606	)		(241	)		(960	)

Of which:
Fixed Sweden		(145	)		(549	)		(219	)		(866	)
Fixed Denmark		(49	)		27			(30	)		29
Other countries/eliminations		3			(84	)		8			(123	)
²⁾Of which amortization of Telenor’s net excess values		69			(6	)		187			66
³⁾ Of which write-downs of Telenor’s net excess values		—			12			—			12

Capex
Fixed Sweden		114			255			582			485
Fixed Denmark		60			57			209			97
Other countries		—			8			—			25

Bredbandsbolaget and Glocalnet are consolidated with effect from 8 July 2005 and 1 March 2006, respectively. As of 31 December 2006 Telenor’s ownership interest in Glocalnet was 98.8%. Cybercity is consolidated in Fixed Denmark with effect from 5 July 2005. Compared to the fourth quarter of 2005, the Norwegian Krone depreciated against the Swedish Krone by approximately 8% and against the Danish Krone by approximately 4% in the third quarter of 2006. Operations in Other countries were sold with effect from 30 January 2006.

Fixed Sweden

•		Revenues, adjusted for the acquisition of Glocalnet, increased due to growth in the number of subscriptions. In the fourth quarter of 2006, the number of xDSL subscriptions increased by 20,000 to 403,000, while the number of LAN subscriptions increased by 7,000 to 172,000.

•		EBITDA, adjusted for the acquisition of Glocalnet, decreased due to positive effects in the fourth quarter of 2005 related to the change in accounting treatment of transactions that provide the rights to use assets, such as local loop unbundling. In the fourth quarter of 2006 EBITDA was negatively affected by a loss on a rental contract of NOK 65 million.

•		Write-downs in the fourth quarter of 2005 were mainly related to fixed assets in Telenor AB.

•		On 1 January 2007 Spray Telecom AB was acquired for SEK 172-million.

Fixed Denmark

•		Revenues increased due to growth in the number of xDSL and VoIP subscriptions, partially offset by lower prices on xDSL subscriptions.

•		EBITDA increased mainly due to higher revenues.

•		The number of xDSL subscriptions increased by 10,000 to 174,000 and the number of VoIP subscriptions increased by 11,000 to 63,000.

•		Write-downs in the fourth quarter of 2006 were related to goodwill due to recognition of not previously recognised deferred taxes in the business combination of Cybercity. According to IFRS, the acquirer shall write down the carrying amount of goodwill with the same amount as not previously recognised deferred tax assets are recognised as a tax income.

Broadcast


	4th quarter						Year
(NOK in millions)	2006			2005			2006			2005

Revenues
Distribution		1 356			1 190			5 197			4 615
Transmission		332			313			1 280			1 207
Other/Eliminations		(33	)		(37	)		(168	)		(173	)
Total revenues¹⁾		1 655			1 466			6 309			5 649

¹⁾Of which internal revenues		52			35			164			131

EBITDA
Distribution		57			147			810			818
Transmission		183			183			748			713
Other/Eliminations		20			1			32			(15	)
Total EBITDA		260			331			1 590			1 516

Depreciation and amortization ²⁾		152			144			606			554
Write-downs³⁾		15			(57	)		18			(53	)
Operating profit		93			244			966			1 015

Of which:
Distribution		(12	)		13			563			494
Transmission		97			240			413			564
Other/Eliminations		8			(9	)		(10	)		(43	)
²⁾ Of which amortization of Telenor’s net excess values		2			14			27			56
³⁾Of which write-downs of Telenor’s net excess values		—			75			—			75

EBITDA/Total revenues (%)		15.7			22.6			25.2			26.8
Operating profit/Total revenues (%)		5.6			16.6			15.3			18.0
Capex		260			133			615			392
Investments in businesses		71			25			219			42
No. of subscribers (in thousands):
DTH pay TV								943			906
Cable TV								696			681
Households in satellite master antenna TV networks								1 155			1 177
Cable TV Internet access								91			73

•		In the fourth quarter of 2006 the number of DTH pay TV subscribers increased by 14,000, the number of Cable TV subscribers increased by 5,000, and the number of Cable TV internet access subscribers increased by 7,000.

•		Total revenues increased primarily due to higher number of subscribers, and higher revenues from the sale of cards and services related to Pay TV access control.

•		The decrease in EBITDA and EBITDA margin was partially driven by free installation and hardware campaigns on DTH and Cable-TV, and the introduction of HDTV in Sweden. Furthermore, the decrease was partially due to higher content costs as a result of renegotiation of the contract with SBS Broadcasting Group/Canal+ with effect from 1 January 2006.

•		Capital expenditure increased due to start up of the construction of the Norwegian digital terrestrial TV (DTT) network in the third quarter of 2006.

•		Telenor, together with TV2 in Norway and Denmark and TV4 in Sweden, acquired the Scandinavian TV distribution rights to UEFA EURO 2008.

•		Telenor, together with Canal+, secured the Nordic TV distribution rights to English F.A. Premier League for three more seasons.

•		Write-downs in the fourth quarter of 2005 were related to reversal of an impairment loss previously recognised.

Other Units


	4th quarter						Year
(NOK in millions)	2006			2005			2006			2005

Revenues
EDB Business Partner		1 599			1 258			5 733			4 991
Venture		149			126			568			490
Corporate functions and Group activities		433			564			2 030			2 266
Other/eliminations		(1	)		(24	)		(57	)		(141	)
Total revenues¹⁾		2 180			1 924			8 274			7 606

¹⁾Of which internal revenues		555			669			2 463			2 907

EBITDA
EDB Business Partner		249			197			620			785
Venture		153			(14	)		142			(2	)
Corporate functions and Group activities		(251	)		(104	)		(549	)		(77	)
Other/eliminations		(137	)		(32	)		(262	)		(149	)
Total EBITDA		14			47			(49	)		557

Depreciation and amortization²⁾		216			195			822			770
Write-downs		19			6			19			6
Operating loss		(221	)		(154	)		(890	)		(219	)

Of which
EDB Business Partner		153			96			222			377
Venture		144			(22	)		109			(23	)
Corporate functions and Group activities		(371	)		(192	)		(943	)		(420	)
Other/eliminations		(147	)		(36	)		(278	)		(153	)
²⁾Of which amortization of Telenor’s net excess values		2			—			5			—

Capex from continuing operations		200			252			738			650
Capex from discontinued operations		74			69			186			182
Investments in businesses		99			47			1 674			332

•		In the fourth quarter of 2006, operating profit included gains on-disposal of operations in Venture of NOK 79 million and gains on-disposal of properties of NOK 33 million.

•		Investments in businesses in the fourth quarter of 2006 were mainly related to the acquisitions within EDB Business Partner and the acquisition of the joint venture company AeroMobile Ltd.

EDB Business Partner

•		Revenues and EBITDA increased mainly due to acquisition of operations in the fourth quarter of 2005 and the first half year of 2006.

•		EDB Business Partner has entered into an agreement to purchase 60% of the shares in Infopulse Ukraine, with an option to acquire the remaining shares.

Satellite Services

•

On 25 October 2006, Telenor entered into an agreement with Apax Partners France for the sale of Telenor Satellite Services (TSS) to funds managed by Apax Partners for a cash consideration of USD 400 million. The agreement is expected to be closed during the first half year of 2007. The post tax results from external transactions in TSS are excluded from Continuing Operations and reported separately as results from Discontinued Operations. Prior periods’ profit and loss statements have been reclassified to be comparable. The gain will be recognised when the agreement is closed. Please refer to page 9 for further details about discontinued operations.

Venture

•

Revenues increased mainly due to acquired business.

Corporate Functions and Group Activities

•

The increased EBITDA loss was largely due to lower intra-group revenues.

Other Profit and Loss Items for the Group

Depreciation, amortization and write-downs


	4th quarter				Year
(NOK in millions)	2006		2005		2006		2005

Depreciation¹⁾		2 432		1 948		8 938		7 854
Amortization²⁾		1 644		1 171		5 783		3 427
Total depreciation and amortization		4 076		3 119		14 721		11 281

Write-downs¹⁾		46		451		150		486
Write-downs of goodwill		67		78		67		44
Write-downs²⁾		25		53		41		53
Total write-downs		138		582		258		583

Total depreciation, amortization and write-downs		4 214		3 701		14 979		11 864


¹⁾		Tangible assets (property, plant and equipment)

²⁾		Other intangible assets and prepaid lease payments.

See page 19 for more specifications.

•		The increase in total depreciation and amortization was primarily due to acquired businesses and increased capital expenditure, partially offset by fully depreciated assets.

•		In general, depreciation and amortization are also affected by changes in exchange rates and investment levels in the previous quarters.

•		Write-downs of tangible assets in the fourth quarter of 2005 were mainly related to Telenor AB.

•		Write-downs of goodwill in the fourth quarter of 2006 were due to recognition of not previously recognised deferred taxes in business combinations. According to IFRS, the acquirer shall write down the carrying amount of goodwill with the same amount as not previously recognised deferred tax assets are recognised as a tax income.

Associated companies


	4th quarter						Year
(NOK in millions)	2006			2005			2006			2005

Telenor’s share of¹⁾
Profit after taxes		595			236			1 839			1 446
Amortization of Telenor’s net excess values		(6	)		(4	)		(16	)		(46	)
Write-downs of Telenor’s net excess values		169			(172	)		158			(172	)
Gains (losses) on disposal of ownership interests		366			3			372			(1	)
Net result from associated companies		1 124			63			2 353			1 227


¹⁾		For certain associated companies, financial statements as of the Group’s balance sheet date are not available. In such instances, the most recent financial statements (as of a date not more than three months prior to the Group’s balance sheet date) are used, and estimates for the last period are made based on publicly available information. Actual figures may deviate from the preliminary figures. The consolidated profit and loss statement contains only the line ‘Net result from associated companies’. The preceding table includes Telenor’s share of profit after taxes from DTAC and UCOM until 26 October 2005. Thereafter DTAC is consolidated, while UCOM is treated as a discontinued operation. Glocalnet is included until 28 February 2006. Thereafter Glocalnet is consolidated as a subsidiary.

•		At the end of the fourth quarter of 2006, Telenor’s ownership interest in VimpelCom in Russia was 29.9%. The value of Telenor’s share of the company, based on the quoted share price as of 31 December 2006, was NOK 30 billion. According to telecom analysts, VimpelCom had approximately 55 million mobile subscriptions at the end of the fourth quarter of 2006.

•		On 30 October 2006, Telenor entered into an agreement to sell its 46.9% ownership interest in Bravida ASA, which has resulted in a gain of NOK 351 million, recognised in the fourth quarter of 2006.

Financial items


	4th quarter						Year
(NOK in millions)	2006			2005			2006			2005

Financial income		526			172			903			440
Financial expenses		(442	)		(566	)		(2 306	)		(1 637	)
Net foreign currency gains (losses)		16			(116	)		(301	)		90
Change in fair value of financial instruments		624			157			1 293			243
Net gains (losses) and write-downs		74			51			1 878			518
Net financial items		798			(302	)		1 467			(346	)


Gross interest expenses		(701	)		(490	)		(2 555	)		(1 594	)
Net interest expenses		(243	)		(396	)		(1 811	)		(1 309	)

•		Increased financial income was mainly due to interest income of NOK 280 million related to the tax settlement in the Sonofon case against the Kingdom of Norway.

•		Decreased financial expenses were mainly related to reversal of provision for interest expenses of NOK 304 million related to the Sonofon case, partially offset by increased financial expenses due to increased long-term interest-bearing liabilities following the acquisition of businesses.

•		The change in fair value of financial instruments was primarily related to the total return swap agreement in the underlying VimpelCom share and to derivatives used for economic hedge of interest-bearing liabilities that do not fulfil the requirements for hedge accounting.

Taxes

•		The nominal Norwegian corporate income tax rate is 28%. Taxes in the fourth quarter of 2006 were positively impacted by a tax income of NOK 2,414 million related to the Sonofon case. In the fourth quarter of 2006, the Telenor Group reported a tax income of NOK 1,016 million.

•		The estimated effective tax rate for the Telenor Group for the fiscal year 2006 is approximately 15% of profit before taxes. The low effective tax rate for the full year was mainly due to the tax free gain on the sale of shares in Inmarsat of NOK 1.8 billion in the first quarter and the tax income of NOK 2.4 billion related to the Sonofon case that was recognised in the fourth quarter.

•		Adjusted for these effects, the effective tax rate for 2006 is approximately 30%. The effective tax rate is also affected by taxes related to companies outside Norway and non-deductible expenses.

•		The actual effective tax rate for 2006 may deviate from the estimated rate.

Balance sheet

•		Total assets as of 31 December 2006 decreased by NOK 4.8 billion compared to 30 September 2006, primarily due to down payment of debt in the fourth quarter.

•		Net interest-bearing liabilities decreased by NOK 4.1 billion in the quarter to NOK 43.2 billion as of 31 December 2006.

•		Assets and liabilities directly associated with those assets that will be transferred in connection with the sale of Telenor Satellite Services (TSS) are presented separately as held for sale in the balance sheet. As a consequence of this, non-current assets of NOK 1,194 million and current assets of NOK 925 million were reclassified to Assets held for sale in the fourth quarter of 2006. Correspondingly, NOK 718 million in current and non-current liabilities related to TSS were reclassified to Liabilities held for sale. For more information regarding Discontinued Operations, see further explanation under Discontinued Operations below.

•		The provisionally purchase price allocation of Mobile Sweden and Telenor Serbia has been revised during the fourth quarter of 2006, and resulted in a reduction of goodwill by NOK 545 million in the fourth quarter of 2006. The increase in intangible assets was mainly related to the same adjustment. The provisionally purchase price allocation is still due for adjustments.

•		Translation differences increased equity in the fourth quarter of 2006 by NOK 1.0 billion, due to the depreciation of the Norwegian Krone compared to most of the functional currencies of Telenor’s foreign subsidiaries and associated companies as of 31 December 2006, compared to 30 September 2006.

Discontinued Operations

•

Discontinued operations remain consolidated in the Group’s financial statements, which means that any internal transactions between continuing and discontinued operations are eliminated as usual in the consolidation. As a consequence, the amounts ascribed to continuing and discontinued operations are revenues and expenses only from external transactions. Prior period’s profit and loss statements have been reclassified to be comparable. This means that the results presented for continuing and discontinued operations do not indicate the profit of these operations, as if they were stand-alone entities, for past or future periods. External assets and liabilities are presented separately as held for sale in the balance sheet with effect from the time Telenor entered into the agreement. However, internal assets and liabilities have not been reclassified. The balance sheet has not been reclassified for prior periods.

US GAAP

•

Net income and equity according to United States Generally Accepted Accounting Principles (US GAAP) will be published in Form 20-F for 2006.

Outlook for 2007

Based upon the current group structure:

•		In 2007 we expect a growth in reported revenues of between 15% and 20%.

•		The EBITDA margin before other income and expenses is expected to be around 35%.

•		We expect capital expenditure as a proportion of revenues to be around 20% in 2007, mainly driven by high subscription growth within our mobile operations in emerging markets.

•		The effects from the introduction of an interconnect regime in Thailand, both when it comes to timing as well as magnitude, represents the main uncertain factor related to Telenor’s outlook for 2007.

•		A growing share of Telenor’s revenues and profits is derived from operations outside Norway. Currency fluctuations may to an increasing extent influence the reported figures in Norwegian Krone. Political risk, including regulatory conditions, may also influence the profits. We expect seasonal variations between the quarters.

Telenor (the Group) consists of Telenor ASA (the Company) and its-subsidiaries. Telenor ASA is a limited company, incorporated in Norway. The condensed consolidated interim financial statements consist of the Group and the Group’s interest in associated companies and joint ventures.

These condensed consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) IAS34 Interim Financial Reporting. They do not include all of the information required for full annual consolidated-financial statements, and should be read in conjunction with consolidated financial statements of the Group as at and for the year ended 31 December 2005. These condensed consolidated interim financial-statements are unaudited.

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 2007’ 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 2005 Annual Report 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/).

Barcelona, 15 February 2007
The Board of Directors of Telenor ASA

Definitions

–		Underlying growth is defined as revenue growth adjusted for the effects of acquisition and disposal of operations and currency effects.

–		For reconciliation of EBITDA before other income and expenses and adjusted operating profit, see the table ‘Reconciliations’ on page 19.

–		Capital expenditure (Capex) is investments in tangible and-intangible assets.

–		Investments in businesses comprise acquisitions of shares and-participations, including acquisitions of subsidiaries and businesses not organised as separate companies.

–		Operating cash flow is defined as EBITDA – Capex.

Mobile Operations

Revenues

Subscription and traffic

– consist of subscription and connection fees,-revenues from voice-outgoing airtime, non-voice traffic, outbound roaming and other mobile service revenues. Subscription and traffic includes only -revenues from-the company’s own subscriptions..

Interconnection revenues

– consist of revenues from incoming traffic. Revenues from incoming traffic related to service provider-subscriptions are not included.

Other mobile revenues

– consist of inbound roaming, national roaming and revenues related to service providers and MVNOs (Mobile Virtual Network Operators).

Non-mobile revenues

– consist of revenues from customer equipment and businesses that are not directly related to mobile operations.

Key Figures

Subscriptions

Contract subscriptions are counted until the-subscription is terminated.

Prepaid subscriptions are counted as active if there has been outgoing or incoming traffic or if the SIM-card has been reloaded during the last three months. Service provider and MVNO subscriptions are not included. Data only SIM-cards are

included, but SIM-cards used for telemetric applications are excluded. Telemetric is defined as machine-to-machine SIM-cards (M2M), for example, vending machines and meter readings.

Average traffic minutes per-subscription per month (AMPU) Traffic minutes per subscription per month are calculated based on total outgoing and incoming rated minutes from the company’s own subscriptions. This includes zero rated minutes and outgoing minutes from own subscriptions while roaming. Outgoing and incoming minutes related to inbound roaming, national roaming, service providers and MVNOs are not included.

Average revenue per subscription per month (ARPU) ARPU is calculated based on mobile revenues from the company’s own subscriptions, divided by the average number of subscriptions for the relevant period.

‘Mobile revenues company’s subscriptions’ consist of ‘Subscription and traffic’ and ‘Interconnection revenues’ and do not include revenues from inbound roaming, national roaming, service providers, MVNOs, sale of-customer equipment and incoming traffic related to service provider-subscriptions.

Fixed – Norway

Revenues

Telephony

– consist of subscription and connection fee, traffic (fixed to fixed, fixed to mobile, to other countries, value added services, other traffic) for PSTN/ISDN and Voice over Internet Protocol (VoIP).

xDSL/Internet

– consist of subscription fee for xDSL and Internet and traffic charges for Internet traffic (810/815).

Data services

– consist of Nordicom, Frame relay and IP-VPN.

Other revenue

– consist of leased lines, managed services and other retail products.

Wholesale revenues

– consist of sale to service providers of telephony (PSTN/ISDN) and xDSL, national and international interconnect, transit traffic, leased lines, other wholesale products and contractor services.

Broadcast

Revenues

Distribution

– consist of revenues from Pay TV subscribers and basic tier households on DTH (direct to home), cable TV subscribers, households in SMATV networks and DTT (Digital terrestrial TV) Pay TV subscribers.

Transmission

– consist of revenues from satellite services from satellite position 1-degree west and revenue from-terrestrial radio and TV transmission in Norway.

Other

– consist of revenues from conditional access systems and revenue not directly related to Distribution and Transmission services

Telenor Mobile — Norway


	2004								2005								2006
(NOK in millions)	Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4
Subscription and traffic		1 846		1 968		2 044		2 021		1 927		2 003		2 098		2 120		2 023		2 170		2 264		2 125
Interconnection revenues		378		402		403		430		407		452		441		454		446		474		443		452
Mobile revenues company’s subscriptions		2 224		2 370		2 447		2 451		2 334		2 455		2 539		2 574		2 469		2 644		2 707		2 577

Other mobile revenues		304		405		434		370		362		453		484		526		532		505		624		530
Total mobile revenues		2 528		2 775		2 881		2 821		2 696		2 908		3 023		3 100		3 001		3 149		3 331		3 107

Non-mobile revenues		276		179		128		142		142		141		98		135		104		124		127		119

Total revenues ¹⁾		2 804		2 954		3 009		2 963		2 838		3 049		3 121		3 235		3 105		3 273		3 458		3 226

¹⁾ Of which internal revenues		311		315		311		289		278		313		299		281		266		257		221		215

EBITDA		1 002		1 081		1 103		1 119		1 001		1 066		1 218		1 186		1 323		1 365		1 513		1 293
Depreciation and amortization ¹⁾		239		275		267		281		213		230		224		222		216		215		206		216
Write-downs ²⁾		—		1		3		11		- 2		12		4		2		—		33		—		4

Operating profit		763		805		833		827		790		824		990		962		1 107		1 117		1 307		1 073

¹⁾ Of which amortization of Telenor’s net excess values		—		—		—		1		1		1		1		1		1		1		1		(3	)
²⁾ Of which write-downs of Telenor’s net excess values		—		—		—		—		—		—		—		—		—		—		—		—

EBITDA/Total revenues (%)		35.7		36.6		36.7		37.8		35.3		35.0		39.0		36.7		42.6		41.7		43.8		40.1
Operating profit/Total revenues (%)		27.2		27.3		27.7		27.9		27.8		27.0		31.7		29.7		35.7		34.1		37.8		33.3
Capex		214		255		332		172		194		343		220		461		129		143		220		272
Investments in businesses		—		—		—		52		—		—		—		—		—		—		—		—


No. of mobile subscriptions (in thousands)		2 378		2 451		2 562		2 645		2 635		2 687		2 736		2 731		2 722		2 709		2 711		2 723
- of which prepaid		1 091		1 118		1 178		1 228		1 218		1 267		1 285		1 222		1 185		1 133		1 097		1 053
Average traffic minutes per subscription per month (AMPU) in the quarter		179		187		187		182		175		191		186		184		186		196		199		205
Average revenue per subscription per month (ARPU) in the quarter		315		332		328		318		297		308		314		317		305		324		331		316
- of which contract		464		491		499		491		453		465		475		472		446		461		469		441
- of which prepaid		147		146		129		119		117		129		133		136		126		141		134		127

Sonofon — Denmark


	2004								2005								2006
(NOK in millions)	Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4
Subscription and traffic		274		496		541		502		571		595		600		595		622		630		693		693
Interconnection revenues		140		280		274		292		300		328		325		347		348		338		327		355
Mobile revenues company’s subscriptions		414		776		815		794		871		923		925		942		970		968		1 020		1 048

Other mobile revenues		97		161		170		143		143		158		181		156		145		152		169		162
Total mobile revenues		511		937		985		937		1 014		1 081		1 106		1 098		1 115		1 120		1 189		1 210

Non-mobile revenues		159		288		281		306		179		227		250		236		238		227		239		263

Total revenues ¹⁾		670		1 225		1 266		1 243		1 193		1 308		1 356		1 334		1 353		1 347		1 428		1 473

¹⁾ Of which internal revenues		4		8		21		20		20		35		43		34		30		48		55		63

EBITDA		167		238		260		16		253		308		307		308		305		307		390		378
Depreciation and amortization ¹⁾		189		355		369		277		353		328		308		296		286		271		280		291
Write-downs ²⁾		—		—		—		3 290		—		—		—		—		—		—		—		—

Operating profit / (loss)		- 22		- 117		- 109		- 3,551		- 100		- 20		- 1		12		19		36		110		87

¹⁾ Of which amortization of Telenor’s net excess values		75		160		160		156		157		134		131		133		137		132		138		139
²⁾ Of which write-downs of Telenor’s net excess values		—		—		—		3 075		—		—		—		—		—		—		—		—

EBITDA/Total revenues (%)		24.9		19.4		20.5		1.3		21.2		23.5		22.6		23.1		22.5		22.8		27.3		25.7
Operating profit/Total revenues (%)	nm		nm		nm		nm		nm		nm		nm			0.9		1.4		2.7		7.7		5.9
Capex		66		144		102		76		28		140		137		757		109		170		168		251
Investments in businesses		3 641		145		—		—		—		—		—		4		—		—		—		—


No. of mobile subscriptions (in thousands)		987		1 203		1 253		1 275		1 232		1 250		1 261		1 284		1 299		1 310		1 342		1 398
- of which prepaid		250		451		485		462		413		420		420		425		429		436		464		491
Average traffic minutes per subscription per month (AMPU) in the quarter		147		157		139		151		153		182		183		195		200		209		203		205
Average revenue per subscription per month (ARPU) in the quarter		250		233		219		207		229		253		243		246		250		248		257		255
- of which contract		287		291		281		267		284		306		292		285		292		290		306		307
- of which prepaid		135		111		120		111		126		146		146		166		164		163		161		159

Telenor Mobile — Sweden


	2004								2005								2006
(NOK in millions)	Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4
Subscription and traffic		32		34		37		38		37		33		34		26		902		972		1 050		1 083
Interconnection revenues		9		15		13		15		15		18		15		12		206		235		219		255
Mobile revenues company’s subscriptions		41		49		50		53		52		51		49		38		1 108		1 207		1 269		1 338

Other mobile revenues		5		6		11		8		11		14		19		10		89		96		133		118
Total mobile revenues		46		55		61		61		63		65		68		48		1 197		1 303		1 402		1 456

Non-mobile revenues		—		—		—		—		—		—		—		—		104		127		148		161

Total revenues ¹⁾		46		55		61		61		63		65		68		48		1 301		1 430		1 550		1 617

¹⁾ Of which internal revenues		14		21		27		25		28		33		39		24		48		27		42		42

EBITDA		-25		-36		-45		-619		-10		-18		-139		-309		170		241		371		326
Depreciation and amortization ¹⁾		8		7		8		26		0		0		0		0		358		395		435		405
Write-downs ²⁾		0		0		0		75		0		0		0		0		0		0		6		0

Operating profit / (loss)		-33		-43		-53		-720		-10		-18		-139		-309		-188		-154		-70		-79

¹⁾ Of which amortization of Telenor’s net excess values		0		0		0		0		0		0		0		0		52		64		260		68
²⁾ Of which write-downs of Telenor’s net excess values		—		—		—		—		—		—		—		—		—		—		—		—

EBITDA/Total revenues (%)	nm		nm		nm		nm		nm		nm		nm		nm			13.1		16.9		23.9		20.2
Operating profit/Total revenues (%)	nm		nm		nm		nm		nm		nm		nm		nm		nm		nm		nm		nm
Capex		4		4		3		6		—		—		—		—		135		137		112		224
Investments in businesses		—		—		—		—		—		—		—		—		7 739		8		—		(241	)


No. of mobile subscriptions (in thousands)		84		92		96		105		107		99		97		95		1 660		1 676		1 708		1 733
- of which prepaid		48		55		56		57		56		51		50		48		575		571		571		553
Average traffic minutes per subscription per month (AMPU) in the quarter		73		96		104		108		113		141		144		129		160		185		184		195
Average revenue per subscription per month (ARPU) in the quarter		169		181		182		169		164		167		164		136		229		242		249		260
- of which contract		252		262		265		241		215		216		215		183		330		340		346		362
- of which prepaid		106		122		125		117		121		121		115		90		49		54		58		50

Kyivstar — Ukraine


	2004								2005								2006
(NOK in millions)	Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4
Subscription and traffic		610		703		838		810		807		1 158		1 437		1 720		1 749		1 952		2 321		2 347
Interconnection revenues		186		236		319		327		313		428		541		606		528		562		606		616
Mobile revenues company’s subscriptions		796		939		1 157		1 137		1 120		1 586		1 978		2 326		2 277		2 514		2 927		2 963

Other mobile revenues		16		27		54		25		23		30		72		33		36		50		82		43
Total mobile revenues		812		966		1 211		1 162		1 143		1 616		2 050		2 359		2 313		2 564		3 009		3 006

Non-mobile revenues		13		15		18		22		20		27		26		31		16		16		16		16

Total revenues ¹⁾		825		981		1 229		1 184		1 163		1 643		2 076		2 390		2 329		2 580		3 025		3 022

¹⁾ Of which internal revenues		—		—		1		1		1		2		2		1		—		1		5		3

EBITDA		505		592		772		712		632		911		1 148		1 359		1 432		1 596		1 827		1 661
Depreciation and amortization ¹⁾		125		128		145		157		231		331		322		325		379		381		395		430
Write-downs ²⁾		—		—		—		—		—		—		—		15		—		—		13		18

Operating profit		380		464		627		555		401		580		826		1 019		1 053		1 215		1 419		1 213

¹⁾ Of which amortization of Telenor’s net excess values		24		24		24		21		22		23		24		24		24		23		23		24
²⁾ Of which write-downs of Telenor’s net excess values		—		—		—		—		—		—		—		—		—		—		—		—

EBITDA/Total revenues (%)		61.2		60.3		62.8		60.1		54.3		55.4		55.3		56.9		61.5		61.9		60.4		55.0
Operating profit/Total revenues (%)		46.1		47.3		51.0		46.9		34.5		35.3		39.8		42.6		45.2		47.1		46.9		40.1
Capex		331		566		687		1 024		735		919		1 106		890		830		770		992		1 039
Investments in businesses		—		35		—		—		—		—		—		—		—		—		—		—


No. of mobile subscriptions (100% in thousands)		3 221		3 610		4 856		6 252		7 662		9 335		10 943		13 925		14 965		16 005		17 709		21 510
- of which prepaid		2 675		3 031		4 211		5 532		6 892		8 500		10 021		12 901		13 895		14 886		16 535		20 281
Average traffic minutes per subscription per month (AMPU) in the quarter		68		74		95		95		91		90		103		108		110		118		123		127
Average revenue per subscription per month (ARPU) in the quarter		84		93		95		68		53		62		66		64		53		54		57		52
- of which contract		191		213		223		184		165		187		200		197		175		180		197		198
- of which prepaid		62		69		72		52		40		49		53		53		43		45		47		41

Pannon — Hungary


	2004								2005								2006
(NOK in millions)	Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4
Subscription and traffic		872		872		1 005		920		880		903		1 025		960		926		913		940		1 030
Interconnection revenues		423		443		423		442		430		458		416		431		400		400		415		453
Mobile revenues company’s subscriptions		1 295		1 315		1 428		1 362		1 310		1 361		1 441		1 391		1 326		1 313		1 355		1 483

Other mobile revenues		25		39		46		32		28		44		52		20		23		35		45		30
Total mobile revenues		1 320		1 354		1 474		1 394		1 338		1 405		1 493		1 411		1 349		1 348		1 400		1 513

Non-mobile revenues		81		90		78		116		77		93		90		154		64		79		64		134

Total revenues ¹⁾		1 401		1 444		1 552		1 510		1 415		1 498		1 583		1 565		1 413		1 427		1 464		1 647

¹⁾ Of which internal revenues		1		2		—		3		2		2		2		4		3		2		3		6

EBITDA		556		556		561		420		517		484		650		534		540		567		581		517
Depreciation and amortization ¹⁾		331		326		326		312		316		276		294		285		279		254		251		294
Write-downs ²⁾		—		—		—		21		—		2		1		4		—		33		—		26

Operating profit		225		230		235		87		201		206		355		245		261		280		330		197

¹⁾ Of which amortization of Telenor’s net excess values		89		89		91		89		90		85		86		84		84		79		79		86
²⁾ Of which write-downs of Telenor’s net excess values		—		—		—		—		—		—		—		—		—		—		—		—

EBITDA/Total revenues (%)		39.7		38.5		36.1		27.8		36.5		32.3		41.1		34.1		38.2		39.7		39.7		31.4
Operating profit/Total revenues (%)		16.1		15.9		15.1		5.8		14.2		13.8		22.4		15.7		18.5		19.6		22.5		12.0
Capex		104		121		121		820		109		243		150		261		71		235		168		145
Investments in businesses		—		—		—		—		—		—		—		—		—		—		—		—


No. of mobile subscriptions (in thousands)		2 596		2 588		2 595		2 770		2 792		2 824		2 856		2 929		2 939		2 947		2 981		3 153
- of which prepaid		1 977		1 935		1 886		1 991		1 955		1 915		1 894		1 904		1 878		1 854		1 848		1 962
Average traffic minutes per subscription per month (AMPU) in the quarter		111		121		127		131		125		143		145		149		143		159		157		160
Average revenue per subscription per month (ARPU) in the quarter		165		170		184		171		157		162		166		162		150		148		150		161
- of which contract		399		389		400		356		327		316		314		299		272		254		248		269
- of which prepaid		92		96		103		96		84		89		89		86		80		86		87		90

Telenor Serbia


	2004				2005				2006
(NOK in millions)	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3		Q4
Total revenues												175		551
EBITDA												103		206
Operating profit ¹⁾²⁾												86		46
¹⁾ Of which amortization of Telenor’s net excess values												5		32
²⁾ Of which write-downs of Telenor’s net excess values												—		—
Capex												49		114
Investments in businesses												11,980		1


No. of mobile subscriptions (in thousands)												2,284		2,464
- of which prepaid												1,862		2,003
Average traffic minutes per subscription per month (AMPU) in the quarter														87
Average revenue per subscription per month (ARPU) in the quarter														75
- of which contract														166
- of which prepaid														53

Promonte — Montenegro


	2004							2005								2006
(NOK in millions)	Q1	Q2	Q3		Q4			Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4
Total revenues				82		118			104		123		180		112		114		139		211		148
EBITDA				45		46			55		60		98		47		55		65		122		65
Operating profit ¹⁾²⁾				26		(2	)		12		18		58		7		16		27		84		24
¹⁾ Of which amortization of Telenor’s net excess values				7		25			20		20		20		20		20		20		20		20
²⁾ Of which write-downs of Telenor’s net excess values				—		—			—		—		—		—		—		—		—		—
Capex				3		13			5		4		8		21		4		7		24		41
Investments in businesses				540		1			—		—		—		—		—		—		—		—


No. of mobile subscriptions (in thousands)				340		279			279		303		394		310		324		363		479		365
- of which prepaid				297		234			235		263		352		265		276		309		424		305
Average traffic minutes per subscription per month (AMPU) in the quarter				113		87			91		105		109		92		104		121		120		105
Average revenue per subscription per month (ARPU) in the quarter				139		107			115		129		126		95		111		120		125		108
- of which contract				309		284			288		338		339		269		284		297		303		286
- of which prepaid				111		79			82		97		103		71		81		90		100		81

DTAC — Thailand


	2004				2005					2006
(NOK in millions)	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4		Q1		Q2		Q3		Q4
Subscription and traffic									1 074		1 852		1 760		1 887		1 991
Interconnection revenues									25		33		33		41		39
Mobile revenues company’s subscriptions									1 099		1 885		1 793		1 928		2 030

Other mobile revenues									74		131		85		93		109
Total mobile revenues									1 173		2 016		1 878		2 021		2 139

Non-mobile revenues									18		16		15		20		19

Total revenues ¹⁾									1 191		2 032		1 893		2 041		2 158

¹⁾ Of which internal revenues									6		11		8		6		11

EBITDA									445		719		698		732		795
Depreciation and amortization ¹⁾									220		337		335		356		385
Write-downs ²⁾									—		—		—		—		—

Operating profit									225		382		363		376		410

¹⁾ Of which amortization of Telenor’s net excess values									35		51		50		51		53
²⁾ Of which write-downs of Telenor’s net excess values									—		—		—		—		—

EBITDA/Total revenues (%)									37.4		35.4		36.9		35.9		36.8
Operating profit/Total revenues (%)									18.9		18.8		19.2		18.4		19.0
Capex									146		605		543		565		737
Investments in businesses									2 664		85		31		—		—


No. of mobile subscriptions (100% in thousands)									8 677		9 823		10 622		11 241		11 869
- of which prepaid									7 212		8 185		8 806		9 274		9 833
Average traffic minutes per subscription per month (AMPU) in the quarter									231		295		327		314		329
Average revenue per subscription per month (ARPU) in the quarter									66		69		59		58		59
- of which contract									141		150		126		123		121
- of which prepaid									51		53		45		44		45

DiGi — Malaysia


	2004								2005								2006
(NOK in millions)	Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4
Subscription and traffic		642		662		751		739		792		924		1 035		1 198		1 279		1 331		1 355		1 488
Interconnection revenues		147		137		144		143		137		143		155		159		166		127		138		144
Mobile revenues company’s subscriptions		789		799		895		882		929		1 067		1 190		1 357		1 445		1 458		1 493		1 632

Other mobile revenues		17		18		17		13		14		15		18		18		21		20		33		8
Total mobile revenues		806		817		912		895		943		1 082		1 208		1 375		1 466		1 478		1 526		1 640

Non-mobile revenues		130		141		136		109		91		79		77		77		80		66		58		59

Total revenues ¹⁾		936		958		1 048		1 004		1 034		1 161		1 285		1 452		1 546		1 544		1 584		1 699

¹⁾ Of which internal revenues		1		1		1		—		1		—		1		2		2		1		2		1

EBITDA		426		410		453		443		451		499		560		632		700		700		721		824
Depreciation and amortization ¹⁾		229		226		231		215		257		253		255		273		252		227		296		328
Write-downs ²⁾		—		—		—		—		1		—		1		3		—		7		1		- 1

Operating profit		197		184		222		228		193		246		304		356		448		466		424		497

¹⁾ Of which amortization of Telenor’s net excess values		19		18		18		17		17		17		13		4		4		4		3		4
²⁾ Of which write-downs of Telenor’s net excess values		—		—		—		—		—		—		—		—		—		—		—		—

EBITDA/Total revenues (%)		45.5		42.8		43.2		44.1		43.6		43.0		43.6		43.5		45.3		45.3		45.5		48.5
Operating profit/Total revenues (%)		21.0		19.2		21.2		22.7		18.7		21.2		23.7		24.5		29.0		30.2		26.8		29.3
Capex		103		162		228		427		108		178		310		574		226		199		371		513
Investments in businesses		—		—		—		—		—		—		—		—		—		—		—		—


No. of mobile subscriptions (100% in thousands)		2 413		2 583		2 804		3 239		3 461		3 765		4 187		4 795		5 086		5 440		5 590		5 312
- of which prepaid		2 301		2 453		2 653		3 067		3 259		3 525		3 880		4 441		4 704		5 018		5 126		4 807
Average traffic minutes per subscription per month (AMPU) in the quarter		167		164		170		165		163		170		175		169		162		163		162		173
Average revenue per subscription per month (ARPU) in the quarter		113		107		110		98		92		99		100		102		97		93		90		96
- of which contract		312		312		297		238		233		216		192		174		172		180		163		157
- of which prepaid		104		97		100		90		84		93		93		97		92		86		84		91

Grameenphone — Bangladesh


	2004								2005								2006
(NOK in millions)	Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4
Subscription and traffic		470		500		565		529		598		659		715		769		871		911		1 032		1 106
Interconnection revenues		9		20		26		35		34		39		52		63		73		78		94		114
Mobile revenues company’s subscriptions		479		520		591		564		632		698		767		832		944		989		1 126		1 220

Other mobile revenues		7		6		5		6		5		5		6		6		6		5		3		4
Total mobile revenues		486		526		596		570		637		703		773		838		950		994		1 129		1 224

Non-mobile revenues		3		3		2		—		3		2		2		12		5		3		4		5

Total revenues ¹⁾		489		529		598		570		640		705		775		850		955		997		1 133		1 229

¹⁾ Of which internal revenues		—		—		—		—		—		—		—		1		—		1		—		—

EBITDA		283		309		383		338		329		334		441		455		659		488		645		724
Depreciation and amortization ¹⁾		34		51		58		72		77		89		107		166		159		148		169		204
Write-downs ²⁾		—		—		—		3		—		—		—		—		—		—		—		—

Operating profit		249		258		325		263		252		245		334		289		500		340		476		520

¹⁾ Of which amortization of Telenor’s net excess values		—		—		—		—		—		—		—		—		—		—		—		—
²⁾ Of which write-downs of Telenor’s net excess values		—		—		—		—		—		—		—		—		—		—		—		—

EBITDA/Total revenues (%)		57.9		58.4		64.0		59.3		51.4		47.4		56.9		53.5		69.0		48.9		56.9		58.9
Operating profit/Total revenues (%)		50.9		48.8		54.3		46.1		39.4		34.8		43.1		34.0		52.4		34.1		42.0		42.3
Capex		160		258		418		482		496		357		590		1 153		389		516		435		683
Investments in businesses		—		—		—		298		—		—		—		—		—		—		—		—


No. of mobile subscriptions (100% in thousands)		1 520		1 795		2 024		2 388		2 928		3 704		4 215		5 542		6 427		8 459		9 404		10 759
- of which prepaid		1 258		1 501		1 730		2 092		2 625		3 375		3 860		5 159		6 030		8 015		8 904		10 227
Average traffic minutes per subscription per month (AMPU) in the quarter		239		246		249		241		237		223		223		250		196		213		214		241
Average revenue per subscription per month (ARPU) in the quarter		120		106		103		87		81		69		65		56		51		45		41		41
- of which contract		331		287		302		257		288		284		282		258		258		234		220		169
- of which prepaid		71		69		67		60		54		47		45		39		37		33		31		34

Telenor Pakistan


	2004										2005												2006
(NOK in millions)	Q1	Q2			Q3			Q4			Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4
Subscription and traffic			—			—			—			1			25			50			91			149			193			266			394
Interconnection revenues			—			—			—			—			23			25			45			62			70			60			83
Mobile revenues company’s subscriptions			—			—			—			1			48			75			136			211			263			326			477

Other mobile revenues			—			—			—			—			—			—			—			—			1			3			3
Total mobile revenues			—			—			—			1			48			75			136			211			264			329			480

Non-mobile revenues			—			—			—			—			—			1			4			4			1			4			6

Total revenues ¹⁾			—			—			—			1			48			76			140			215			265			333			486

¹⁾ Of which internal revenues			—			—			—			—			6			2			3			2			1			4			4

EBITDA			(13	)		(20	)		(45	)		(133	)		(172	)		(134	)		(133	)		(77	)		(117	)		(87	)		(47	)
Depreciation and amortization ¹⁾			—			—			—			14			60			67			85			98			103			112			136
Write-downs ²⁾			—			—			—			—			—			—			—			—			—			—			—

Operating profit / (loss)			(13	)		(20	)		(45	)		(147	)		(232	)		(201	)		(218	)		(175	)		(220	)		(199	)		(183	)

¹⁾ Of which amortization of Telenor’s net excess values			—			—			—			—			—			—			—			—			—			—			—
²⁾ Of which write-downs of Telenor’s net excess values			—			—			—			—			—			—			—			—			—			—			—

EBITDA/Total revenues (%)			—			—			—			—		nm			nm			nm			nm			nm			nm			nm
Operating profit/Total revenues (%)			—			—			—			—		nm			nm			nm			nm			nm			nm			nm
Capex			1,821			19			153			1,139			(91	)		299			496			351			754			701			847
Investments in businesses			—			—			—			—			—			—			—			—			—			—			—


No. of mobile subscriptions (in thousands)			—			—			—			344			836			1,200			1,868			2,527			3,205			4,597			6,661
- of which prepaid			—			—			—			342			829			1,183			1,836			2,495			3,165			4,555			6,621
Average traffic minutes per subscription per month (AMPU) in the quarter			—			—			—			—			74			93			131			136			146			123			132
Average revenue per subscription per month (ARPU) in the quarter			—			—			—			—			22			25			30			32			30			27			28
- of which contract			—			—			—			—			154			99			72			59			59			51			60
- of which prepaid			—			—			—			—			21			24			29			31			30			27			28

FIXED


	2004												2005												2006
(NOK in millions)	Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4
Revenues
Norway		4,483			4,427			4,282			4,353			4,163			4,367			4,151			4,186			4,178			3,983			3,796			3,867
Other operations		469			474			419			467			436			418			840			887			919			1,047			1,056			1,145
Eliminations		(29	)		(24	)		(26	)		(39	)		(28	)		(32	)		(27	)		(48	)		(30	)		(31	)		(11	)		(45	)

Total revenues ¹⁾		4,923			4,877			4,675			4,781			4,571			4,753			4,964			5,025			5,067			4,999			4,841			4,967

¹⁾ Of which internal revenues

EBITDA		1,632			1,631			1,515			1,560			1,408			1,504			1,430			1,543			1,559			1,567			1,671			1,269
Depreciation and amortization ¹⁾		954			897			855			867			783			729			874			850			761			733			769			821
Write-downs ²⁾		—			—			—			40			(22	)		2			(2	)		609			—			15			9			57

Operating profit		678			734			660			653			647			773			558			84			798			819			893			391

¹⁾ Of which amortization of Telenor’s net excess values		—			—			1			6			1			2			69			(6	)		33			41			44			73
²⁾ Of which write-downs of Telenor’s net excess values		—			—			—			(22	)		(31	)		—			(3	)		10			—			—			—			—

EBITDA/Total revenues (%)		33.2			33.4			32.4			32.6			30.8			31.6			28.8			30.7			30.8			31.3			34.5			25.5
Operating profit/Total revenues (%)		13.8			15.1			14.1			13.7			14.2			16.3			11.2			1.7			15.7			16.4			18.4			7.9
Capex		378			385			419			609			381			556			602			1,237			617			643			561			702
Investments in businesses		86			10			—			9			43			1			5,792			(20	)		461			75			2			90

Fixed — Norway


	2004								2005											2006
(NOK in millions)	Q1		Q2		Q3		Q4		Q1			Q2		Q3			Q4			Q1		Q2		Q3		Q4
Revenues
Telephony		2,183		2,117		1,959		2,009		1,871			1,867		1,743			1,751			1,703		1,627		1,501		1,477
xDSL/Internet		426		417		444		466		461			508		534			536			568		581		579		611
Data services		247		267		259		249		232			243		250			238			215		199		204		209
Other revenues		456		386		428		386		342			400		357			366			357		315		285		323

Total retail revenues		3,312		3,187		3,090		3,110		2,906			3,018		2,884			2,891			2,843		2,722		2,569		2,620

Wholesale revenues		1,171		1,240		1,192		1,243		1,257			1,349		1,267			1,295			1,335		1,261		1,227		1,247

Total revenues ¹⁾		4,483		4,427		4,282		4,353		4,163			4,367		4,151			4,186			4,178		3,983		3,796		3,867

¹⁾ Of which internal revenues		438		454		428		522		463			522		582			623			545		510		517		508

EBITDA		1,631		1,606		1,523		1,570		1,438			1,532		1,354			1,377			1,390		1,417		1,460		1,150
Depreciation and amortization ¹⁾		880		819		778		774		705			658		652			692			602		561		540		559
Write-downs ²⁾		—		—		—		2		(22	)		—		(2	)		(1	)		—		13		—		—

Operating profit		751		787		745		794		755			874		704			686			788		843		920		591

¹⁾ Of which amortization of Telenor’s net excess values		—		—		1		1		—			—		—			—			—		—		—		4
²⁾ Of which write-downs of Telenor’s net excess values		—		—		—		2		(31	)		—		(3	)		(2	)		—		—		—		—

EBITDA/Total revenues (%)		36.4		36.3		35.6		36.1		34.5			35.1		32.6			32.9			33.3		35.6		38.5		29.7
Operating profit/Total revenues (%)		16.8		17.8		17.4		18.2		18.1			20.0		17.0			16.4			18.9		21.2		24.2		15.3
Capex		355		315		346		457		337			503		412			917			479		371		354		528
Investments in businesses		—		1		—		1		43			1		—			—			1		—		—		87


Retail market
No. of Telephony subscriptions (in thousands)		1,932		1,886		1,838		1,800		1,757			1,705		1,664			1,622			1,577		1,545		1,513		1,480
- of which PSTN subscriptions (in thousands)		1,248		1,219		1,196		1,182		1,165			1,139		1,118			1,089			1,054		1,017		991		965
- of which ISDN subscriptions (in thousands)		684		667		642		618		592			562		538			509			479		454		434		413
- of which VoIP subscriptions (in thousands)		—		—		—		—		—			4		8			24			44		74		88		102
No. of xDSL subscriptions (in thousands)		208		235		270		326		385			415		444			475			511		527		542		572
Telephony generated traffic (million minutes)		3,725		3,279		2,851		3,171		2,848			2,644		2,289			2,502			2,277		1,997		1,721		1,841
Wholesale market
No. of Telephony subscriptions (in thousands)		227		266		285		301		309			316		316			314			316		308		296		289
- of which PSTN subscriptions (in thousands)		151		170		180		188		192			200		202			202			203		201		194		192
- of which ISDN subscriptions (in thousands)		76		96		105		113		117			116		114			112			113		107		102		97
No. of xDSL subscriptions (in thousands)		76		86		90		91		77			87		97			109			117		123		130		141
No. of LLUB (in thousands)		96		108		123		145		172			192		209			235			254		265		276		290

Fixed — Sweden


	2004												2005												2006
(NOK in millions)	Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4
External revenues		403			404			350			400			367			342			622			650			724			876			893			932
Internal revenues		23			26			26			22			25			32			32			26			3			(10	)		(36	)		(6	)

Tota revenues		426			430			376			422			392			374			654			676			727			866			857			926


EBITDA		(3	)		24			(9	)		(3	)		(29	)		(27	)		31			183			109			100			128			63
Depreciation and amortization ¹⁾		61			65			65			71			64			63			165			124			113			115			172			207
Write-downs ²⁾		—			—			—			36			—			—			—			608			—			2			9			1

Operating profit / (loss)		(64	)		(41	)		(74	)		(110	)		(93	)		(90	)		(134	)		(549	)		(4	)		(17	)		(53	)		(145	)

¹⁾ Of which amortization of Telenor’s net excess values		—			—			—			5			1			2			69			(25	)		23			32			35			59
²⁾ Of which write-downs of Telenor’s net excess values		—			—			—			(24	)		—			—			—			12			—			—			—			—

EBITDA/Total revenues (%)	nm				5.6		nm			nm			nm			nm				4.7			27.1			15.0			11.5			14.9			6.8
Operating profit/Total revenues (%)	nm			nm			nm			nm			nm			nm			nm			nm			nm			nm			nm			nm
Capex		15			72			58			134			40			48			142			255			83			230			155			114
Investments in businesses		78			9			—			6			—			—			4,479			(27	)		460			75			2			3


Bredbandsbolaget
No. of xDSL subscriptions (in thousands)		—			—			—			—			—			—			200			214			229			242			264			278
No. of LAN subscriptions (in thousands)		—			—			—			—			—			—			156			155			156			158			165			172
No. of VoIP subscriptions (in thousands)		—			—			—			—			—			—			91			104			119			134			147			161
Glocalnet
No. of xDSL subscriptions (in thousands)		—			—			—			—			—			—			—			—			113			117			119			125
No. of PSTN subscriptions (in thousands)		—			—			—			—			—			—			—			—			285			284			273			257

Fixed — Denmark


	2004				2005						2006
(NOK in millions)	Q1	Q2	Q3	Q4	Q1	Q2	Q3		Q4		Q1		Q2		Q3		Q4
External revenues								142		164		174		180		197		217
Internal revenues								—		—		—		1		2		2

Tota revenues								142		164		174		181		199		219


EBITDA								48		49		55		59		61		62
Depreciation and amortization ¹⁾								46		22		43		57		56		55
Write-downs ²⁾								—		—		—		—		—		56

Operating profit								2		27		12		2		5		(49	)

¹⁾ Of which amortization of Telenor’s net excess values								—		19		10		9		9		10
²⁾ Of which write-downs of Telenor’s net excess values								—		—		—		—		—		—

EBITDA/Total revenues (%)								33.8		29.9		31.6		32.6		30.7		28.3
Operating profit/Total revenues (%)								1.4		16.5		6.9		1.1		2.5	nm
Capex								40		57		55		42		52		60
Investments in businesses								1,313		7		—		—		—		—


No. of xDSL subscriptions (in thousands)								109		122		138		152		164		174
No. of VoIP subscriptions (in thousands)								18		26		37		41		52		63

BROADCAST


	2004												2005												2006
(NOK in millions)	Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4
Revenues
Distribution		1,061			1,064			1,072			1,112			1,139			1,147			1,139			1,190			1,251			1,299			1,291			1,356
Transmission		303			310			303			295			297			298			299			313			312			317			319			332
Other/Eliminations		(58	)		(39	)		(45	)		(32	)		(46	)		(44	)		(46	)		(37	)		(46	)		(52	)		(37	)		(33	)

Total revenues ¹⁾		1,306			1,335			1,330			1,375			1,390			1,401			1,392			1,466			1,517			1,564			1,573			1,655

¹⁾ Of which internal revenues		35			33			33			34			28			35			33			35			35			38			39			52

EBITDA
Distribution		192			218			213			126			213			242			216			147			234			251			268			57
Transmission		153			161			183			191			174			175			181			183			175			191			199			183
Other/Eliminations		4			13			29			15			(7	)		(6	)		(3	)		1			(1	)		(5	)		18			20

Total EBITDA		349			392			425			332			380			411			394			331			408			437			485			260

Depreciation and amortization ¹⁾		187			174			173			170			144			133			133			144			154			153			147			152
Write-downs ²⁾		—			—			—			44			—			4			—			(57	)		3			—			—			15

Operating profit		162			218			252			118			236			274			261			244			251			284			338			93

Of which:
Distribution		74			115			117			(4	)		143			179			159			13			172			189			214			(12	)
Transmission		87			94			110			118			106			107			111			240			89			110			117			97
Other/Eliminations		1			9			25			4			(13	)		(12	)		(9	)		(9	)		(10	)		(15	)		7			8

¹⁾ Of which amortization of Telenor’s net excess values		14			17			16			16			14			14			14			14			11			10			4			2
²⁾ Of which write-downs of Telenor’s net excess values		—			—			—			25			—			—			—			75			—			—			—			—

EBITDA/Total revenues (%)		26.7			29.4			32.0			24.1			27.3			29.3			28.3			22.6			26.9			27.9			30.8			15.7
Operating profit/Total revenues (%)		12.4			16.3			18.9			8.6			17.0			19.6			18.8			16.6			16.5			18.2			21.5			5.6
Capex		23			70			716			71			47			96			116			133			92			106			157			260
Investments in businesses		—			—			—			—			—			—			17			25			—			98			50			71


No. of DTH pay TV subscribers (in thousands)		778			782			800			824			851			853			876			906			918			921			929			943
No. of Cable TV subscribers (in thousands)		605			611			614			624			616			619			636			681			684			687			691			696
No. of households in satellite master antenna TV networks (in thousands)		1,132			1,161			1,190			1,212			1,197			1,205			1,184			1,177			1,120			1,119			1,154			1,155
No. of Cable TV Internet access (in thousands)		34			35			38			44			48			50			53			73			78			81			84			91

OTHER UNITS


	2004												2005												2006
(NOK in millions)	Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4
Revenues
EDB Business Partner		1,047			1,044			1,042			1,154			1,231			1,285			1,217			1,258			1,335			1,449			1,350			1,599
Venture		217			245			213			226			116			125			123			126			133			146			140			149
Corporate functions and Group activities		529			552			515			558			582			603			517			564			522			568			507			433
Other/eliminations		(6	)		(29	)		(56	)		(37	)		(39	)		(46	)		(32	)		(24	)		(26	)		(24	)		(6	)		(1	)

Total revenues ¹⁾		1,787			1,812			1,714			1,901			1,890			1,967			1,825			1,924			1,964			2,139			1,991			2,180

¹⁾ Of which internal revenues		734			710			717			768			788			803			647			669			638			657			613			555

EBITDA
EDB Business Partner		138			456			188			196			177			187			224			197			191			141			39			249
Venture		(3	)		1			62			70			6			(1	)		7			(14	)		(17	)		(4	)		10			153
Corporate functions and Group activities		(95	)		(75	)		(79	)		(168	)		(6	)		(34	)		67			(104	)		(104	)		(131	)		(63	)		(251	)
Other/eliminations		(24	)		(13	)		(94	)		(14	)		(43	)		(47	)		(27	)		(32	)		(41	)		(37	)		(47	)		(137	)

Total EBITDA		16			369			77			84			134			105			271			47			29			(31	)		(61	)		14

Depreciation and amortization ¹⁾		163			193			172			176			186			198			191			195			178			213			215			216
Write-downs ²⁾		2			1			37			(1	)		—			—			—			6			—			—			—			19

Operating profit / (loss)		(149	)		175			(132	)		(91	)		(52	)		(93	)		80			(154	)		(149	)		(244	)		(276	)		(221	)

Of which
EDB Business Partner		89			396			121			130			81			80			120			96			99			37			(67	)		153
Venture		(14	)		(7	)		55			63			2			(6	)		3			(22	)		(25	)		(13	)		3			144
Corporate functions and Group activities		(181	)		(182	)		(178	)		(268	)		(92	)		(120	)		(16	)		(192	)		(182	)		(229	)		(161	)		(371	)
Other/eliminations		(43	)		(32	)		(130	)		(16	)		(43	)		(47	)		(27	)		(36	)		(41	)		(39	)		(51	)		(147	)

¹⁾ Of which amortization of Telenor’s net excess values		—			—			—			—			—			—			—			—			—			1			2			2
²⁾ Of which write-downs of Telenor’s net excess values		—			—			—			—			—			—			—			—			—			—			—			—

Capex		53			204			74			208			96			146			156			252			135			152			251			200
Investments in businesses		22			441			104			762			7			263			15			47			658			616			301			99

The tables include investments from discontinued operation prior to their disposal

PROFIT AND LOSS STATEMENT


Telenor Group	2004												2005												2006
(NOK in millions except earnings per share)	Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4
Revenues		13,663			14,625			15,025			14,952			14,694			15,966			17,046			18,860			21,284			22,003			23,255			24,535
Costs of materials and traffic charges		3,338			3,634			3,848			3,890			3,680			4,036			4,249			4,467			5,275			5,500			5,665			6,165
Own work capitalized		(124	)		(164	)		(103	)		(166	)		(122	)		(186	)		(141	)		(255	)		(175	)		(123	)		(121	)		(192	)
Salaries and personnel costs		2,436			2,428			2,139			2,656			2,453			2,479			2,337			2,648			2,990			2,958			2,563			3,227
Other operating expenses		3,112			3,339			3,596			3,597			3,706			4,199			4,164			5,322			5,384			5,826			5,994			7,149
Other (income) and expenses		18			(172	)		18			(22	)		(21	)		(66	)		213			102			61			28			224			(8	)
EBITDA		4,883			5,560			5,527			4,997			4,998			5,504			6,224			6,576			7,749			7,814			8,930			8,194

Depreciation and amortization		2,439			2,640			2,650			2,637			2,640			2,687			2,835			3,119			3,482			3,478			3,685			4,076
Write-downs		2			2			41			3,482			(23	)		20			4			582			3			88			29			138
Operating profit		2,442			2,918			2,836			(1,122	)		2,381			2,797			3,385			2,875			4,264			4,248			5,216			3,980

Associated companies		221			288			328			138			238			492			434			63			311			360			558			1,124
Net financial items		2,268			(296	)		(234	)		(252	)		149			(69	)		(124	)		(302	)		1,202			(727	)		194			798
Profit before taxes		4,931			2,910			2,930			(1,236	)		2,768			3,220			3,695			2,636			5,777			3,881			5,968			5,902

Taxes		(1,583	)		(892	)		(911	)		1,015			(830	)		(966	)		(1,109	)		(465	)		(1,560	)		(1,049	)		(1,613	)		1,016
Profit from continuing operations		3,348			2,018			2,019			(221	)		1,938			2,254			2,586			2,171			4,217			2,832			4,355			6,918

Profit (loss) from discontinued operations		75			54			43			77			32			74			63			16			13			42			62			38
Profit from total operations		3,423			2,072			2,062			(144	)		1,970			2,328			2,649			2,187			4,230			2,874			4,417			6,956


Attributable to:
Non-controlling interests (Minority interests)		292			363			379			286			260			287			449			492			580			590			636			772
Equity holders of Telenor ASA (Net income)		3,131			1,709			1,683			(430	)		1,710			2,041			2,200			1,695			3,650			2,284			3,781			6,184


Earnings per share in NOK
From continuing operations:
Basic		1.72			0.94			0.94			(0.29	)		0.97			1.15			1.26			0.99			2.15			1.33			2.21			3.66
Diluted		1.73			0.94			0.95			(0.29	)		0.97			1.14			1.26			0.99			2.15			1.33			2.21			3.65
From total operations:
Basic		1.77			0.97			0.97			(0.25	)		0.99			1.19			1.30			1.00			2.15			1.35			2.25			3.68
Diluted		1.77			0.97			0.97			(0.25	)		0.99			1.19			1.29			1.00			2.15			1.35			2.25			3.68


US GAAP
Net income		2,991			1,569			1,649			(570	)		1,625			1,904			2,225			1,673			3,621			2,352			3,744
Net income per share in NOK (basic), excluding treasury shares		1.69			0.89			0.95			(0.33	)		0.94			1.11			1.31			0.99			2.14			1.39			2.23
Net income per share in NOK (diluted), excluding treasury shares		1.69			0.89			0.95			(0.33	)		0.94			1.11			1.31			0.99			2.14			1.39			2.23

BALANCE SHEET


Telenor group	2005								2006
(NOK in millions)	31 Mar		30 Jun		30 Sep		31 Dec		31 Mar		30 Jun		30 Sep		31 Dec
Deferred tax assets		2,890		1,951		1,317		3,052		2,501		1,908		1,481		1,934
Goodwill		13,378		12,816		18,273		20,700		22,648		22,969		31,415		30,870
Intangible assets		10,809		10,229		11,389		21,245		23,178		22,735		27,613		29,076
Tangible assets		38,952		39,292		40,688		43,958		49,132		48,767		52,994		53,712
Associated companies		6,980		7,832		8,320		7,424		7,501		7,616		8,303		8,826
Other financial assets		2,679		3,388		3,161		2,129		2,407		2,337		3,119		3,068

Total non-current assets		75,688		75,508		83,148		98,508		107,367		106,332		124,925		127,486


Accounts receivable		6,078		6,523		7,146		6,921		7,404		8,191		9,160		9,129
Other current assets		6,957		7,168		8,071		9,118		10,126		10,273		10,708		10,247
Assets held for sale		—		—		—		667		—		—		—		2,119
Other liquid assets		410		420		545		2,237		130		567		585		510
Cash and cash equivalents		7,870		10,541		6,033		6,806		9,683		7,534		16,799		7,849

Total current assets		21,315		24,652		21,795		25,749		27,343		26,565		37,252		29,854

Total assets		97,003		100,160		104,943		124,257		134,710		132,897		162,177		157,340


Shareholders equity		41,936		40,309		42,714		46,399		47,583		44,359		50,940		57,974
Minority interests		4,289		4,630		5,198		7,134		7,621		7,457		8,082		8,351

Total equity and minority interests		46,225		44,939		47,912		53,533		55,204		51,816		59,022		66,325


Pension obligations		2,443		2,286		2,403		2,440		2,645		2,543		2,461		2,350
Deferred tax liabilities		2,293		2,050		2,290		2,669		3,611		3,336		4,036		4,460
Other provisions		748		748		787		790		811		873		1,074		1,028

Provisions		5,484		5,084		5,480		5,899		7,067		6,752		7,571		7,838


Non-current interest-bearing liabilities		21,492		22,359		22,406		27,139		25,397		26,654		52,201		42,683
Non-current non-interest-bearing liabilities		572		556		542		580		590		583		568		702

Total non-current liabilities		22,064		22,915		22,948		27,719		25,987		27,237		52,769		43,385


Current interest-bearing liabilities		3,681		7,269		6,592		11,908		20,024		20,069		13,418		9,952
Accounts payable		4,900		4,471		5,402		6,215		6,448		6,572		7,404		7,358
Current non-interest-bearing liabilities		14,649		15,482		16,609		18,696		19,980		20,451		21,993		21,764
Current non-interest-bearing liabilities (held for sale)		—		—		—		287		—		—		—		718

Total current liabilities		23,230		27,222		28,603		37,106		46,452		47,092		42,815		39,792

Total equity and liabilities		97,003		100,160		104,943		124,257		134,710		132,897		162,177		157,340


Equity ratio including minority interests (%)		47.7		44.9		45.7		43.1		41.0		39.0		36.4		42.2

USGAAP
Shareholders equity		43,930		42,670		44,900		47,457		48,536		45,669		52,093

CASH FLOW STATEMENT


Telenor group	2005												2006
(NOK in millions)	31 Mar			30 Jun			30 Sep			31 Dec			31 Mar			30 Jun			30 Sep			31 Dec
Profit before taxes and minority interests		2,815			6,140			9,925			12,591			5,825			9,762			15,812			21,764
Income taxes paid		(231	)		(434	)		(728	)		(1,369	)		(638	)		(1,162	)		(1,708	)		(357	)
Net (gains) losses, including write-downs and change in fair value of financial items		(466	)		(584	)		(738	)		(929	)		(1,817	)		(1,605	)		(2,486	)		(3,277	)
Depreciation, amortization and write-downs		2,681			5,452			8,358			12,131			3,549			7,180			10,958			15,241
Associated companies		(239	)		(733	)		(1,168	)		(1,233	)		(312	)		(674	)		(1,236	)		(2,362	)
Difference between expensed and paid pensions		169			42			203			211			156			52			(65	)		(166	)
Currency (gains) losses not related to operating activities		25			(162	)		(203	)		(18	)		109			95			278			219
Change in other accruals		453			4			532			956			(100	)		(561	)		11			(421	)

Net cash flows from operating activities		5,207			9,725			16,181			22,340			6,772			13,087			21,564			30,641


Purchases of property, plant and equipment (PPE) and intangible assets		(2,271	)		(5,538	)		(9,078	)		(14,213	)		(4,097	)		(8,562	)		(13,473	)		(19,224	)
Purchases of subsidiaries and associated companies, net of cash acquired		(3	)		(109	)		(5,653	)		(8,128	)		(8,578	)		(9,425	)		(21,761	)		(21,964	)
Sales of PPE, intangible assets and businesses, net of cash transferred		59			741			1,161			1,279			438			472			589			1,171
Sales and purchases of other investments		768			1,078			1,000			1,064			2,196			1,707			2,131			3,522

Net cash flows from investing activities		(1,447	)		(3,828	)		(12,570	)		(19,998	)		(10,041	)		(15,808	)		(32,514	)		(36,495	)


Proceeds from and repayments of interest-bearing liabilities		(686	)		2,735			2,210			4,175			6,185			7,399			25,759			12,578
Proceeds from issuance of shares, including from minorities in subsidiaries		22			24			47			74			61			86			91			110
Share buy-back		(329	)		(657	)		(2,267	)		(2,267	)		—			(87	)		(864	)		(953	)
Dividends paid and repayment of equity to minority interests in subsidiaries		(25	)		(209	)		(209	)		(219	)		—			(426	)		(665	)		(976	)
Dividends paid to Telenor’s shareholders		—			(2,460	)		(2,595	)		(2,595	)		—			(3,202	)		(3,389	)		(3,389	)

Net cash flows from financing activities		(1,018	)		(567	)		(2,814	)		(832	)		6,246			3,770			20,932			7,370


Effects of exchange rate changes on cash and cash equivalents		47			130			155			215			(100	)		(321	)		11			(179	)

Net change in cash and cash equivalents		2,789			5,460			952			1,725			2,877			728			9,993			1,337

Cash and cash equivalents at the beginning of the period		5,081			5,081			5,081			5,081			6,806			6,806			6,806			6,806
Cash and cash equivalents at the end of the period		7,870			10,541			6,033			6,806			9,683			7,534			16,799			8,143
- Of which cash and cash equivalents in discontinued operations at the end of the period		—			—			—			—			—			—			—			294
Cash and cash equivalents at the end of the period — as per balance sheet		7,870			10,541			6,033			6,806			9,683			7,534			16,799			7,849


The table includes cash flows from discontinued operations prior to their disposal.

Cash Flows from discontinued operations
Net cash flows from operating activities		52			228			380			583			59			153			265			485
Net cash flows from investing activities		(25	)		262			240			176			(25	)		(86	)		(125	)		(197	)
Net cash flows from financing activities		—			—			(1	)		10			—			—			—			(3	)

The cash flows ascribed to discontinued operations are only cash flows from external transactions.

Hence, the cash flows presented for discontinued operations do not reflect these operations as if they were stand alone entities.

SPECIAL ITEMS


Telenor group	2004											2005												2006
(NOK in millions)	Q1		Q2			Q3			Q4			Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4
Gains on disposal of fixed assets and operations
Telenor Mobile — Norway		—		—			—			—			—			—			—			—			—			—			—			—
Sonofon — Denmark		—		—			—			—			—			—			1			—			—			—			—			4
Telenor Mobile — Sweden		—		—			—			—			—			—			—			—			—			—			—			—
Kyivstar — Ukraine		—		—			—			—			—			—			—			—			—			—			—			—
Pannon — Hungary		1		—			2			2			5			1			4			—			4			1			1			1
DTAC — Thailand		—		—			—			—			—			—			—			—			—			—			1			1
DiGi — Malaysia		—		—			—			—			—			—			—			—			—			—			—			—
Grameenphone — Bangladesh		—		—			—			—			—			—			—			—			—			1			—			—
Other mobile operations		—		—			—			—			—			—			—			—			—			—			—			—
Fixed		—		—			1			9			3			50			(2	)		37			5			—			—			1
Broadcast		1		(1	)		—			1			1			—			—			—			—			4			—			1
EDB Business Partner		—		300			—			3			—			—			25			6			—			—			—			—
Other business units		3		1			69			72			—			12			8			—			17			21			(1	)		79
Corporate functions and Group activities		2		59			3			35			22			57			58			26			5			12			3			33
Eliminations		—		—			—			—			—			—			—			4			—			—			—			—

Total gains on disposal of fixed assets and operations		7		359			75			122			31			120			94			73			31			39			4			120


Losses on disposal of fixed assets and operations
Telenor Mobile — Norway		—		—			—			—			4			3			6			3			—			—			—			1
Sonofon — Denmark		—		1			1			(2	)		—			—			—			—			—			—			—			2
Telenor Mobile — Sweden		—		—			—			—			—			—			—			—			2			2			(4	)		—
Kyivstar — Ukraine		—		—			—			—			—			—			—			—			—			1			—			13
Pannon — Hungary		—		—			3			—			4			1			17			(3	)		2			2			2			1
DTAC — Thailand		—		—			—			—			—			—			—			—			—			—			—			1
DiGi — Malaysia		—		—			—			—			—			—			5			—			—			—			—			1
Grameenphone — Bangladesh		—		—			4			4			—			—			10			—			—			1			19			5
Other mobile operations		—		—			—			—			—			—			—			1			—			—			—			—
Fixed		—		2			24			(1	)		—			—			—			65			(12	)		1			4			2
Broadcast		—		—			—			1			—			—			1			—			2			—			—			3
EDB Business Partner		—		—			—			—			—			—			—			—			—			—			—			—
Other business units		—		—			31			(12	)		—			—			—			—			—			—			—			—
Corporate functions and Group activities		1		23			2			5			—			28			1			4			9			30			1			(1	)
Eliminations		—		—			(16	)		1			—			—			(1	)		2			—			—			—			—

Total losses on disposal of fixed assets and operations		1		26			49			(4	)		8			32			39			72			3			37			22			28


Expenses for workforce reductions and loss contracts
Telenor Mobile — Norway		4		(4	)		—			24			(1	)		—			—			(1	)		9			3			1			2
Sonofon — Denmark		—		—			—			28			—			3			—			9			3			2			37			—
Telenor Mobile — Sweden		—		—			—			562			—			—			123			291			48			(8	)		—			(22	)
Kyivstar — Ukraine		—		—			—			—			—			—			—			—			—			—			—			—
Pannon — Hungary		—		11			4			1			—			—			—			10			—			—			—			2
DTAC — Thailand		—		—			—			—			—			—			—			—			—			—			—			—
DiGi — Malaysia		—		—			—			—			—			—			—			—			—			—			—			—
Grameenphone — Bangladesh		—		—			—			—			—			—			—			—			—			—			—			—
Other mobile operations		—		—			—			—			—			—			—			—			—			—			—			—
Fixed		18		24			5			39			7			9			135			8			25			22			17			88
Broadcast		—		1			1			3			—			—			—			—			—			—			—			—
EDB Business Partner		—		27			16			(10	)		—			5			—			13			—			—			144			—
Other business units		—		—			16			7			(1	)		1			—			—			3			2			—			1
Corporate functions and Group activities		2		103			1			10			(3	)		5			11			16			1			9			6			14
Eliminations		—		(1	)		2			(561	)		—			(1	)		(1	)		(243	)		—			—			1			(1	)
Total workforce reductions and loss contracts		24		161			45			103			2			22			268			103			89			30			206			84

Total other (income) and expenses		18		(172	)		19			(23	)		(21	)		(66	)		213			102			61			28			224			(8	)


Telenor group	2004												2005												2006
(NOK in millions)	Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4
Write-downs
Telenor Mobile — Norway		—			1			3			11			(2	)		12			4			2			—			33			—			4
Sonofon — Denmark		—			—			—			3,290			—			—			—			—			—			—			—			—
Telenor Mobile — Sweden		—			—			—			75			—			—			—			—			—			—			6			—
Kyivstar — Ukraine		—			—			—			—			—			—			—			15			—			—			13			18
Pannon — Hungary		—			—			—			21			—			2			1			4			—			33			—			26
DTAC — Thailand		—			—			—			—			—			—			—			—			—			—			—			—
DiGi — Malaysia		—			—			—			—			1			—			1			3			—			7			1			(1	)
Grameenphone — Bangladesh		—			—			—			3			—			—			—			—			—			—			—			—
Other mobile operations		—			—			—			—			—			—			—			—			—			—			—			—
Fixed		—			—			—			40			(22	)		2			(2	)		609			—			15			9			57
Broadcast		—			—			—			44			—			4			—			(57	)		3			—			—			15
EDB Business Partner		—			—			—			—			—			—			—			—			—			—			—			1
Other business units		2			—			36			(1	)		—			—			—			4			—			—			—			1
Corporate functions and Group activities		—			—			2			—			—			—			—			2			—			—			—			17
Eliminations		—			—			—			—			—			—			—			—			—			—			—			—
Total write-downs		2			1			41			3,483			(23	)		20			4			582			3			88			29			138


Special items associated companies
(Gains) losses on disposal of ownership interests		—			(9	)		(8	)		(15	)		—			(3	)		7			(3	)		—			(6	)		—			(366	)
Write-downs associated companies		—			—			—			—			—			—			—			172			—			11			—			(169	)
(Gains) losses on disposal and write-downs of associated companies		—			(9	)		(8	)		(15	)		—			(3	)		7			169			—			5			—			(535	)


Net (gains) losses and write-downs financial items		(2,613	)		(18	)		(21	)		(21	)		(417	)		(49	)		(1	)		(51	)		(1,815	)		15			(4	)		(74	)

RECONCILIATIONS


Telenor group	2004												2005												2006
(NOK in millions)	Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4
Profit from total operations		3,423			2,072			2,062			(144	)		1,970			2,328			2,649			2,187			4,230			2,874			4,417			6,956
Profit (loss) from discontinued operations		75			54			43			77			32			74			63			16			13			42			62			38
Profit from continuing operations		3,348			2,018			2,019			(221	)		1,938			2,254			2,586			2,171			4,217			2,832			4,355			6,918
Taxes		(1,583	)		(892	)		(911	)		1,015			(830	)		(966	)		(1,109	)		(465	)		(1,560	)		(1,049	)		(1,613	)		1,016
Profit before taxes		4,931			2,910			2,930			(1,236	)		2,768			3,220			3,695			2,636			5,777			3,881			5,968			5,902
Net financial items		2,268			(296	)		(234	)		(252	)		149			(69	)		(124	)		(302	)		1,202			(727	)		194			798
Associated companies		221			288			328			138			238			492			434			63			311			360			558			1,124
Depreciation and amortization		2,439			2,640			2,650			2,637			2,640			2,687			2,835			3,119			3,482			3,478			3,685			4,076
Write-downs		2			2			41			3,482			(23	)		20			4			582			3			88			29			138
EBITDA		4,883			5,560			5,527			4,997			4,998			5,504			6,224			6,576			7,749			7,814			8,930			8,194


EBITDA		4,883			5,560			5,527			4,997			4,998			5,504			6,224			6,576			7,749			7,814			8,930			8,194
Other (income) and expenses		18			(172	)		19			(23	)		(21	)		(66	)		213			102			61			28			224			(8	)
EBITDA before other income and expenses		4,901			5,388			5,546			4,974			4,977			5,438			6,437			6,678			7,810			7,842			9,154			8,186


Operating profit		2,442			2,918			2,836			(1,122	)		2,381			2,797			3,385			2,875			4,264			4,248			5,216			3,980
Write-downs		2			1			41			3,483			(23	)		20			4			582			3			88			29			138
Other (income) and expenses		18			(172	)		19			(23	)		(21	)		(66	)		213			102			61			28			224			(8	)
Adjusted operating profit		2,462			2,747			2,896			2,338			2,337			2,751			3,602			3,559			4,328			4,364			5,469			4,110


Profit before taxes		4,931			2,910			2,930			(1,236	)		2,768			3,220			3,695			2,636			5,777			3,881			5,968			5,902
Net (gains) losses and write-downs financial items		(2,613	)		(18	)		(21	)		(21	)		(417	)		(49	)		(1	)		(51	)		(1,815	)		15			(4	)		(74	)
(Gains) losses on disposal and write downs of associated companies		—			(9	)		(8	)		(15	)		—			(3	)		7			169			—			5			—			(535	)
Write-downs		2			1			41			3,483			(23	)		20			4			582			3			88			29			138
Other (income) and expenses		18			(172	)		19			(23	)		(21	)		(66	)		213			102			61			28			224			(8	)
Adjusted profit before taxes		2,338			2,712			2,961			2,188			2,307			3,122			3,918			3,438			4,026			4,017			6,217			5,423

Capex


Telenor group	2004										2005												2006
(NOK in millions)	Q1		Q2			Q3			Q4		Q1			Q2			Q3			Q4			Q1			Q2			Q3		Q4
Telenor Mobile — Norway		214		255			332			172		194			343			220			461			129			143			220		272
Sonofon — Denmark		66		144			102			76		28			140			137			757			109			170			168		251
Telenor Mobile — Sweden		4		4			3			6		—			—			—			—			135			137			112		224
Kyivstar — Ukraine		331		566			687			1,024		735			919			1,106			890			830			770			992		1,039
Pannon — Hungary		104		121			121			820		109			243			150			261			71			235			168		145
Telenor — Serbia		—		—			—			—		—			—			—			—			—			—			49		114
Promonte — Montenegro		—		—			3			13		5			4			8			21			4			7			24		41
DTAC — Thailand		—		—			—			—		—			—			—			146			605			543			565		737
DiGi — Malaysia		103		162			228			427		108			178			310			574			226			199			371		513
Grameenphone — Bangladesh		160		258			418			482		496			357			590			1,153			389			516			435		683
Telenor — Pakistan		—		1,821			19			153		1,139			(91	)		299			496			351			754			701		847
Fixed — Norway		355		315			346			457		337			503			412			917			479			371			354		528
Fixed Sweden		15		72			58			134		40			48			142			255			83			230			155		114
Fixed Denmark		—		—			—			—		—			—			40			57			55			42			52		60
Fixed — Other/Fixed Eliminations		8		(2	)		15			18		4			5			8			8			—			—			—		—
Broadcast		23		70			716			71		47			96			116			133			92			106			157		260
Other units		88		241			99			269		125			193			193			321			156			203			291		274
Eliminations		—		(15	)		(7	)		—		(7	)		(15	)		(11	)		(14	)		(11	)		(4	)		2		(7	)

Total capex		1,471		4,012			3,140			4,122		3,360			2,923			3,720			6,436			3,703			4,422			4,816		6,095

Investments in businesses


Telenor group	2004									2005									2006
(NOK in millions)	Q1		Q2			Q3		Q4		Q1		Q2		Q3		Q4			Q1		Q2		Q3		Q4
Telenor Mobile — Norway		—		—			—		52		—		—		—		—			—		—		—		—
Sonofon — Danmark		3,641		145			—		—		—		—		—		4			—		—		—		—
Telenor Mobile — Sweden		—		—			—		—		—		—		—		—			7,739		8		—		(241	)
Kyivstar — Ukraine		—		35			—		—		—		—		—		—			—		—		—		—
Pannon — Hungary		—		—			—		—		—		—		—		—			—		—		—		—
Telenor — Serbia		—		—			—		—		—		—		—		—			—		—		11,980		1
Promonte — Montenegro		—		—			540		1		—		—		—		—			—		—		—		—
DTAC — Thailand		—		—			—		—		—		—		—		2,664			85		31		—		—
DiGi — Malaysia		—		—			—		—		—		—		—		—			—		—		—		—
Grameenphone — Bangladesh		—		—			—		298		—		—		—		—			—		—		—		—
Telenor — Pakistan		—		—			—		—		—		—		—		—			—		—		—		—
Fixed — Norway		—		1			—		1		43		1		—		—			1		—		—		87
Fixed Sweden		78		9			—		6		—		—		4,479		(27	)		460		75		2		3
Fixed Denmark		—		—			—		—		—		—		1,313		7			—		—		—		—
Fixed — Other/Fixed Eliminations		8		—			—		2		—		—		—		—			—		—		—		—
Broadcast		—		—			—		—		—		—		17		25			—		98		50		71
Other units		22		441			104		762		7		263		15		47			658		616		301		99
Eliminations		—		(337	)		—		—		—		—		—		—			—		—		—		—

Total investments in businesses		3,749		294			644		1,122		50		264		5,824		2,720			8,943		828		12,333		20