Telenor ASA — Earnings Release 2015

Feb 10, 2016

Telenor Group fourth quarter 2015 results

Telenor Group fourth quarter 2015 results

HIGHLIGHTS

Key figures for the fourth quarter of 2015 (NOK millions,

comparable figures for 2014 in parentheses):

* Revenues: 33,487 (30,440)

* EBITDA before other items: 10,860 (9,318)

* EBITDA margin before other items (%): 32.4 (30.6)

* Profit after taxes and non-controlling interests: -2,125

(496)

"Five per cent organic revenue growth and five per cent

organic EBITDA growth in 2015 shows the strength of our

portfolio of operations. We are, however, entering 2016 with

increased competition in some of our key markets, and it

will be my key priority to secure focus on profitable growth

and cost efficiency," says Sigve Brekke, Chief Executive

Officer of Telenor Group.

Telenor reported fourth-quarter revenues of NOK 33.5 billion

and organic revenue growth of 2%. EBITDA before other items

grew 10% organically to NOK 10.9 billion. The EBITDA margin

was 32%. Telenor added 6.6 million mobile subscribers during

the fourth quarter, taking the total number of customers to

203 million.

In Norway and Sweden, there are solid trends in the mobile

consumer segment from increasing data usage and relevant

offers. On the fixed side, both operations continued to grow

their high-speed internet subscriber base, adding 107,000

connections during the year.

In Thailand, dtac added 400,000 customers during the

quarter, with growth both in prepaid and contract segments.

While competition remains intense, dtac continued its 3G and

4G network roll-out and has made significant quality and

coverage improvements during 2015. Performance in Malaysia

was hampered by intense competition on data and

international calls, as well as a weakening currency.

Telenor's operations in Bangladesh and Pakistan show strong

performance, both in terms of subscriber growth and

profitability. Telenor Myanmar has made impressive progress

in its first year of operation, and ended the year with 14

million subscribers.

IMPAIRMENT LOSS OF NOK 2.1 BILLION

The outlook for the Danish telecom market remains

challenging. As a consequence of updated earnings

projections an impairment loss of NOK 2.1 billion was

recognised in the fourth quarter of 2015 in Telenor Denmark.

DIVIDEND PROPOSAL OF NOK 7.50 PER SHARE

Based on the financial results for 2015, the Board of

Directors will propose a dividend of 7.50 per share for

2015, to be paid out in two tranches. The proposal is in

line with Telenor's ambition to deliver a year over year

growth in dividends.

OUTLOOK FOR 2016

Telenor expects continued healthy organic revenue growth for

the Group in 2016, but fierce competition and headwinds in

key markets like Thailand and Malaysia put pressure on

EBITDA margin expectations. Investments will continue to be

centred on the roll-out of high-speed mobile and fixed

networks.

Based on this, the financial guidance for 2016 is 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%.

Attachments:

1: Report January-December 2015 (PDF)

2: Presentation Q4 2015 (PDF)

See attachments at http://www.newsweb.no

Analytical information is available from Telenor's web site:

http://www.telenor.com/investors/