Telenor ASA — Earnings Release 2016

Apr 27, 2016

Telenor Group first quarter 2016 results

Telenor Group first quarter 2016 results

HIGHLIGHTS

Key figures for the first quarter of 2016 (NOK millions,

comparable figures for 2015 in parentheses):

* Revenues: 33 013 (31 446)

* EBITDA before other items: 11 685 (10 795)

* EBITDA margin before other items (%): 35.4 (34.3)

* Profit after taxes and non-controlling interests: 4 256 (3

852)

"During the first quarter of 2016, Telenor Group delivered

5% EBITDA and 2% revenue growth on an organic basis, and

achieved a healthy operating cash flow of more than NOK 6

billion. We connected more than five million new customers

as we continue to improve our network and service quality

across our footprint. With intense competition in several

markets, driving profitable growth and keeping a close eye

on costs continues to be a priority for me and my management

across our European and Asian markets," said Telenor Group

Chief Executive Officer Sigve Brekke.

Highlights FOR Q1 2016

Telenor reported first-quarter revenues of NOK 33 billion.

Mobile subscription and traffic revenue growth remained

healthy during the quarter at 6%, while total revenues, were

impacted by lower handset sales and declining revenues from

fixed legacy products. The EBITDA margin improved one

percentage point to 35%. Adjusted for one-time effects,

operating profit was NOK 6.4 billion, while profit after

taxes and non-controlling interests was NOK 3.6 billion.

In the quarter, 5.4 million new mobile subscribers were

added, of which 2.2 million in Pakistan, 1.8 million in

Myanmar and 1.5 million in India. The total customer base

now stands at 208 million and about 40% are active internet

users.

In Myanmar, Telenor further improved its market position and

the cash flow was positive after seven quarters of

operations. Grameenphone in Bangladesh had a solid

performance, with an EBITDA and revenue growth of 12% and 9%

respectively. In Pakistan, the positive revenue momentum

continued and total revenues increased by 9%.

In Norway, subscription and traffic revenues continued to

grow, while total revenues dropped as a result of lower

fixed revenues, as well as a decline in interconnect rates

and handset sales. The EBITDA margin remained strong during

the quarter. Through today's launch of new tariffs, Telenor

Norway will give customers improved value and

predictability, through increased data speeds, new data

buckets and the removal of roaming charges within the entire

EU. In Sweden, we plan to further increase our fibre

investments amid rising demand. We currently serve around

1.5 million households and aim to expand our fibre offering

to an additional 500,000 homes by 2020.

Fierce competition in our Thai and Malaysian markets

continued in the first quarter. Digi reported solid postpaid

subscriber growth from stronger data network and new price

plans. In Thailand dtac's EBITDA margin widened by one

percentage point due to lower handset subsidies. The network

expansion programme continued, with 4,700 new sites rolled

out during the quarter.

Going forward, Telenor's key priority will continue to be

securing profitable growth and cost efficiency.

Based on the first quarter performance, the financial

guidance for 2016 remains unchanged. We expect an organic

revenue growth in the range of 2% to 4% and an EBITDA margin

of 33% to 34%. The capex to sales ratio is expected to be

17% to 19%.

Media Contact:

Meera Bhatia, mob: (+47) 4684 4959, E-mail:

meera.bhatia@telenor.com

Press and analyst conference

In connection with the publication of the financial results,

a press and analyst conference will be held on Wednesday 27

April at 09:00 hrs Norwegian time/CET. The presentation,

which will also be broadcast live via webcast, will be held

in Auditorium Voice, Telenor Expo Visitor Centre at Fornebu

near Oslo. CEO Sigve Brekke and acting CFO Morten Karlsen

Sørby will present the results. The presentation will be

held in English.

Conference call and Q&A

You may also call in and listen to the presentation over the

phone. This service allows you to ask questions during the

Q&A session at the end of the presentation. To participate

in the conference call, please register before the

conference starts by calling +47 2316 2787 and state the

confirmation code: 5423054