Telenor ASA — Earnings Release 2017

Oct 25, 2017

Telenor reports third quarter 2017 results

Telenor reports third quarter 2017 results

All-time high EBITDA as transformation gains traction

Once again, Telenor Group delivered a strong set of results,

with an organic mobile subscription and traffic revenue

growth of 3% and continued EBITDA expansion in the third

quarter. The company reduced costs by NOK 0.4 billion,

achieved a record high EBITDA margin of 42% and reported a

strong cash flow. Net income was NOK 5.8 billion.

"We delivered a strong set of results. On an organic basis,

growth in core revenues, together with continued progress on

our efficiency agenda, generated a 9% increase in EBITDA.

Execution of our business strategy is gaining traction. So

far this year, our team has achieved cost savings of 1

billion kroner, implying that our target for 2017 has

already been met and further efficiency gains should be

expected going forward. The solid results, together with the

proceeds from the completion of the VEON sell-down, give us

a free cash flow of 9.4 billion kroner for the quarter.

Our next steps are to continue transforming our business by

focusing on digitalising the core, improving efficiency

across the company and nurturing growth, where we see

reassuring trends and potential. In order to further improve

our services and remain competitive, we aim to leverage new

technologies and make responsible use of our data for the

benefit of our customers. We will maintain our focus on

digitalising our networks and customer interactions, which

are two aspects that we believe are critical to achieving

our ambitions and ensuring that our services are value

adding for our customers,'' said Sigve Brekke, Chief

Executive Officer of Telenor Group.

Third quarter 2017 summary

- Total organic revenues increased by 1%. Organic

mobile subscription & traffic revenues increased by 3%.

- Reported EBITDA before other items was NOK 13

billion, corresponding to a record high EBITDA margin of

42%, an increase of 3 percentage points from last year.

- Net income attributable to equity holders of Telenor

ASA was NOK 5.8 billion.

- Capex excluding spectrum licences was NOK 3.8

billion, resulting in a capex to sales ratio of 12%.

- Free cash flow for the quarter was NOK 9.4 billion.

Outlook

Based on the performance in the first nine months of 2017

and our current expectations for the remainder of the year,

we keep the financial guidance for 2017. We expect organic

revenue growth in the range of 1% to 2%, EBITDA margin of

38% to 39% and capex to sales ratio excluding spectrum

licences of 15% to 16%.

Media Contact

Meera Bhatia, mobile (+47) 46 84 49 59,

meera.bhatia@telenor.com

Investor Relations Contacts

Marianne Moe, mobile: (+47) 91 61 76 31,

marianne.moe@telenor.com

Helge Øien, mobile: (+47) 91 31 92 42,

helge.oien@telenor.com

Press and analyst presentation

In connection with the publication of the financial results,

a press and analyst conference will be held on Wednesday 25

October 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 CFO Jørgen C. Arentz Rostrup

will present the results. The presentation will be held in

English.

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 2350 0296 (local Norway)

+46 (0) 8 5664 2793 (local Sweden)

+44 (0) 330 336 9411 (local UK)

+1 719 325 2202 (local US)

and state the confirmation code: 5627402.

Material

The quarterly report and the presentation are available

here. https://www.telenor.com/investors/financial-

calendar/2017/telenor-groups-results-for-the-3rd-quarter-

2017/