Telenor ASA - Earnings Release 2014

One-time items in Telenor Group's financial reporting for Q1 2014

Telenor's financial results for the first quarter

2014, to be released on 7 May 2014, will be impacted

by the following one-time items:

On 26 March 2014, Telenor announced the divestment of

Conax, the encryption business in Telenor Broadcast,

for NOK 1.5 billion on a cash and debt free basis.

The transaction was finalised on 4 April 2014.

Telenor will report a sales gain of approximately NOK

1.2 billion, included in "Other income and expenses"

in Q1 2014. The cash effect of the transaction will

occur in Q2 2014.

On 31 March 2014, Indian authorities confirmed that

Telenor's Indian subsidiary Telewings will be granted

an offset of the entry fee of INR 16.6 billion

(around NOK 1.7 billion) paid by Unitech Wireless in

2008 against the remaining instalments on the payable

bid amount on spectrum acquired by Telewings in

2012. The one-time effect of the licence offset will

be recognized in Telenor's Q1 results as Other

income. In addition, there is a positive effect on

net financial items of INR 1.7 billion (around NOK

0.2 billion) as accrued interest is reduced following

the reduction of the licence debt. These effects are

partly offset by a deferred tax expense of INR 5.6

billion (around NOK 0.6 billion). The cash effects

from the granted offset will occur in connection with

the remaining instalments, scheduled for 2015-2024.

On 4 April 2014, Telenor Norway announced the results

of the voluntary redundancy packages offered in the

period 5-26 March. 182 employees have been granted

redundancy packages. In addition, more than 100

employees are expected to leave for early retirement

during 2014. A one-time restructuring cost of around

NOK 250 million related to this process will be

recognised in "Other income and expenses" in Q1 2014.

AI assistant