Telenor Reports Q1 Results

OSLO, Norway -- Telenor's (Nasdaq: TELN - News) revenues in the first quarter of 2005 increased by 7.2 per cent compared to the previous year, reaching NOK 15.3 billion. Profit before taxes and minority interests was NOK 2,815 million, compared to NOK 5,033 million in the first quarter of 2004. "We are still seeing strong growth in our mobile operations, which currently generate 53 per cent of Telenor's total revenues," says CEO Jon Fredrik Baksaas.

The reduction in the profit before taxes and minority interests compared to the first quarter of 2004 is mainly due to a gain of NOK 2.6 billion from the sale of Cosmote, posted in the first quarter of 2004. EBITDA (Earnings before profit before amortisation, depreciation and write-downs) in the first quarter of 2005 was NOK 5,106 million. This is an increase of NOK 58 million compared to the first quarter of 2004. The EBITDA margin was 33.4 per cent in the first quarter of 2005, compared to 35.4 per cent in the first quarter of 2004.

"Key points from Telenor's first quarter include strong customer growth in the international mobile operations, a successful launch in Pakistan, an EBITDA margin of more than 20 per cent at Sonofon, and increased pressure on revenues from Fixed," says CEO Jon Fredrik Baksaas.

Telenor ASA