Edgar Filing: TELENOR ASA

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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934

Date: 21^st July, 2006, for 2^nd Quarter, 2006

TELENOR ASA

(Registrant’s Name)

Snarøyveien 30,
1331 Fornebu,
Norway
(Registrant’s Address)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.


		Form 20-F : þ		Form 40-F o

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.


		Yes o		No : þ

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):

TABLE OF CONTENTS


TELENOR ASA SECOND QUARTER 2006 RESULTS
SIGNATURES


		TELENOR ASA SECOND QUARTER 2006 RESULTS

In the second quarter of 2006, Telenor`s revenues increased by 37 per cent compared to the second quarter of 2005, reaching NOK 22.6 billion. The underlying revenue growth was 12 per cent and the EBITDA margin increased from 34 to 35 per cent. Profit before taxes was NOK 3.9 billion. During the second quarter, the total number of mobile subscriptions increased by six million, reaching 96 million.

Highlights Second Quarter 2006:

96 million mobile subscriptions Revenue growth of 37% — underlying growth of 12% EBITDA margin increased from 34% to 35% Strong operating cash flow

Outlook for 2006:

We are maintaining our outlook from the first quarter.

The strong growth in mobile subscriptions during 2005 gives Telenor a solid foundation for further growth in revenues. We expect a growth in reported revenues of around 30%.

We expect a continued high growth in EBITDA, in particular driven by the international mobile operations. Telenor will continue previously introduced initiatives and identify new means of improving cost efficiency.

We expect the EBITDA margin before other income and expenses for 2006 to be above 34%.

We expect high capital expenditure to continue, and capital expenditure as a proportion of revenues is expected to be above 20%. Capital expenditure is expected to continue to be driven by high subscription growth within Telenor`s mobile operations in emerging markets.

A growing share of Telenor’s revenues and profits is derived from operations outside Norway. Currency fluctuations may to an increasing extent influence the reported figures in Norwegian Krone. Political risk, including regulatory conditions, may also influence the profits. We expect seasonal variations between the quarters.

Please find attached the second quarter presentation

PROFIT AND LOSS STATEMENT


Telenor Group	2004												2005												2006
(NOK in millions except earnings per share)	Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4			Q1			Q2			Q3	Q4

Revenues		14,245			15,226			15,608			15,512			15,270			16,542			17,641			19,474			21,872			22,580
Costs of materials and traffic charges		3,625			3,957			4,169			4,173			3,996			4,355			4,561			4,799			5,621			5,826
Own work capitalized		(124	)		(164	)		(103	)		(166	)		(122	)		(186	)		(141	)		(255	)		(175	)		(123	)
Salaries and personnel costs		2,514			2,506			2,212			2,738			2,536			2,562			2,412			2,726			3,075			3,044
Other operating expenses		3,162			3,398			3,658			3,653			3,775			4,247			4,211			5,373			5,431			5,876
Other (income) and expenses		20			(169	)		17			(20	)		(21	)		(66	)		220			109			64			27
EBITDA		5,048			5,698			5,655			5,134			5,106			5,630			6,378			6,722			7,856			7,930

Depreciation and amortization		2,508			2,707			2,719			2,703			2,704			2,751			2,902			3,187			3,546			3,543
Write-downs		3			1			41			3,486			(23	)		20			4			586			3			88
Operating profit		2,537			2,990			2,895			(1,055	)		2,425			2,859			3,472			2,949			4,307			4,299

Associated companies		225			290			331			140			239			494			435			65			312			362
Net financial items		2,271			(297	)		(238	)		(215	)		151			(28	)		(122	)		(348	)		1,206			(724	)
Profit before taxes		5,033			2,983			2,988			(1,130	)		2,815			3,325			3,785			2,666			5,825			3,937

Taxes		(1,610	)		(911	)		(926	)		986			(845	)		(997	)		(1,136	)		(475	)		(1,573	)		(1,063	)
Profit from continuing operations		3,423			2,072			2,062			(144	)		1,970			2,328			2,649			2,191			4,252			2,874

Profit (loss) from discontinued operations		—			—			—			—			—			—			—			(4	)		(22	)		—
Profit from total operations		3,423			2,072			2,062			(144	)		1,970			2,328			2,649			2,187			4,230			2,874


Attributable to:
Non-controlling interests (Minority interests)		292			363			379			286			260			287			449			492			580			590
Equity holders of Telenor ASA (Net income)		3,131			1,709			1,683			(430	)		1,710			2,041			2,200			1,695			3,650			2,284


Earnings per share in NOK
From continuing operations:
Basic		1.77			0.97			0.97			(0.25	)		0.99			1.19			1.30			1.00			2.17			1.35
Diluted		1.77			0.97			0.97			(0.25	)		0.99			1.19			1.29			1.00			2.17			1.35
From total operations:
Basic		1.77			0.97			0.97			(0.25	)		0.99			1.19			1.30			1.00			2.15			1.35
Diluted		1.77			0.97			0.97			(0.25	)		0.99			1.19			1.29			1.00			2.15			1.35


US GAAP
Net income		2,991			1,569			1,649			(570	)		1,625			1,904			2,225			1,673			3,621			2,352
Net income per share in NOK (basic), excluding treasury shares		1.69			0.89			0.95			(0.33	)		0.94			1.11			1.31			0.99			2.14			1.39
Net income per share in NOK (diluted), excluding treasury shares		1.69			0.89			0.95			(0.33	)		0.94			1.11			1.31			0.99			2.14			1.39

BALANCE SHEET


Telenor group	2005								2006
(NOK in millions)	31 Mar		30 Jun		30 Sep		31 Dec		31 Mar		30 Jun		30 Sep	31 Dec

Deferred tax assets		2,890		1,951		1,317		3,052		2,501		1,908
Goodwill		13,378		12,816		18,273		20,700		22,648		22,969
Intangible assets		10,809		10,229		11,389		21,245		23,178		22,735
Tangible assets		38,952		39,292		40,688		43,958		49,132		48,767
Associated companies		6,980		7,832		8,320		7,424		7,501		7,616
Other financial assets		2,679		3,388		3,161		2,129		2,407		2,337
Total non-current assets		75,688		75,508		83,148		98,508		107,367		106,332


Accounts receivable		6,078		6,523		7,146		6,921		7,404		8,191
Other current assets		7,050		7,229		8,205		10,970		10,248		10,391
Assets held for sale		—		—		—		667		—		—
Liquid assets		8,187		10,900		6,444		7,191		9,691		7,983

Total current assets		21,315		24,652		21,795		25,749		27,343		26,565

Total assets		97,003		100,160		104,943		124,257		134,710		132,897


Shareholders equity		41,936		40,309		42,714		46,399		47,583		44,359
Minority interests		4,289		4,630		5,198		7,134		7,621		7,457

Total equity and minority interests		46,225		44,939		47,912		53,533		55,204		51,816


Pension obligations		2,443		2,286		2,403		2,440		2,645		2,543
Deferred tax liabilities		2,293		2,050		2,290		2,669		3,611		3,336
Other provisions		748		748		787		790		811		873

Provisions		5,484		5,084		5,480		5,899		7,067		6,752


Non-current interest-bearing liabilities		21,492		22,359		22,406		27,139		25,397		26,654
Non-current non-interest-bearing liabilities		572		556		542		580		590		583

Total non-current liabilities		22,064		22,915		22,948		27,719		25,987		27,237


Current interest-bearing liabilities		3,681		7,269		6,592		11,908		20,024		20,069
Accounts payable		4,900		4,471		5,402		6,215		6,448		6,572
Current non-interest-bearing liabilities		14,649		15,482		16,609		18,696		19,980		20,451
Current non-interest-bearing liabilities (held for sale)		—		—		—		287		—		—

Total current liabilities		23,230		27,222		28,603		37,106		46,452		47,092

Total equity and liabilities		97,003		100,160		104,943		124,257		134,710		132,897


Equity ratio including minority interests (%)		47.7		44.9		45.7		43.1		41.0		39.0

USGAAP
Shareholders equity		43,930		42,670		44,900		47,457		48,536		45,669

CASH FLOW STATEMENT


Telenor group	2005												2006
(NOK in millions)	31 Mar			30 Jun			30 Sep			31 Dec			31 Mar			30 Jun			30 Sep	31 Dec

Profit before taxes and minority interests		2,815			6,140			9,925			12,591			5,825			9,762
Taxes paid		(231	)		(434	)		(728	)		(1,369	)		(638	)		(1,162	)
Net (gains) losses, including write-downs and change in fair value of financial items		(466	)		(584	)		(738	)		(929	)		(1,817	)		(1,605	)
Depreciation, amortization and write-downs		2,681			5,452			8,358			12,131			3,549			7,180
Associated companies		(239	)		(733	)		(1,168	)		(1,233	)		(312	)		(674	)
Difference between expensed and paid pensions		169			42			203			211			156			52
Currency (gains) losses not related to operating activities		25			(162	)		(203	)		(18	)		109			95
Change in other accruals		453			4			532			956			(100	)		(561	)
Net cash flows from operating activities		5,207			9,725			16,181			22,340			6,772			13,087


					—			—			—
Purchases of property, plant and equipment and intangible assets		(2,271	)		(5,538	)		(9,078	)		(14,213	)		(4,097	)		(8,562	)
Purchases of subsidiaries and associated companies, net of cash received		(3	)		(109	)		(5,653	)		(8,128	)		(8,578	)		(9,425	)
Sales of property, plant and equipment, intangible assets and businesses, net of cash transferred		59			741			1,161			1,279			438			472
Sales and purchases of other investments		768			1,078			1,000			1,064			2,196			1,707
Net cash flows from investing activities		(1,447	)		(3,828	)		(12,570	)		(19,998	)		(10,041	)		(15,808	)


					—			—			—
Proceeds from and repayments of interest-bearing liabilities		(686	)		2,735			2,210			4,175			6,185			7,399
Proceeds from issuance of shares, including from minorities in subsidiaries		22			24			47			74			61			86
Share buy-back		(329	)		(657	)		(2,267	)		(2,267	)		—			(87	)
Dividends paid and repayment of equity to minority interests in subsidiaries		(25	)		(209	)		(209	)		(219	)		—			(426	)
Dividends paid to Telenor’s shareholders		—			(2,460	)		(2,595	)		(2,595	)		—			(3,202	)
Net cash flows from financing activities		(1,018	)		(567	)		(2,814	)		(832	)		6,246			3,770


					—			—			—
Effect on cash and cash equivalents of changes in foreign exchange rates		47			130			155			215			(100	)		(321	)
Net change in cash and cash equivalents		2,789			5,460			952			1,725			2,877			728

Cash and cash equivalents at the beginning of the period		5,081			5,081			5,081			5,081			6,806			6,806
Cash and cash equivalents at the end of the period		7,870			10,541			6,033			6,806			9,683			7,534

SPECIAL ITEMS


Telenor group	2004											2005												2006
(NOK in millions)	Q1		Q2			Q3			Q4			Q1			Q2			Q3			Q4			Q1			Q2			Q3	Q4

Gains on disposal of fixed assets and operations
Telenor Mobile — Norway		—		—			—			—			—			—			—			—			—			—
Sonofon — Denmark		—		—			—			—			—			—			1			—			—			—
Telenor Mobile — Sweden		—		—			—			—			—			—			—			—			—			—
Kyivstar — Ukraine		—		—			—			—			—			—			—			—			—			—
Pannon — Hungary		1		—			2			2			5			1			4			—			4			1
DTAC — Thailand		—		—			—			—			—			—			—			—			—			—
DiGi — Malaysia		—		—			—			—			—			—			—			—			—			—
GrameenPhone — Bangladesh		—		—			—			—			—			—			—			—			—			1
Other mobile operations		—		—			—			—			—			—			—			—			—			—
Fixed		—		—			1			9			3			50			(2	)		37			5			—
Broadcast		1		(1	)		—			1			1			—			—			—			—			4
EDB Business Partner		—		300			—			3			—			—			25			6			—			—
Other business units		4		—			69			71			—			12			8			2			17			21
Corporate functions and Group activities		2		59			3			35			22			57			58			26			5			12
Eliminations		—		—			—			—			—			—			—			4			—			—

Total gains on disposal of fixed assets and operations		8		358			75			121			31			120			94			75			31			39


Losses on disposal of fixed assets and operations
Telenor Mobile — Norway		—		—			—			—			4			3			6			3			—			—
Sonofon — Denmark		—		1			1			(2	)		—			—			—			—			—			—
Telenor Mobile — Sweden		—		—			—			—			—			—			—			—			2			2
Kyivstar — Ukraine		—		—			—			—			—			—			—			—			—			1
Pannon — Hungary		—		—			3			—			4			1			17			(3	)		2			2
DTAC — Thailand		—		—			—			—			—			—			—			—			—			—
DiGi — Malaysia		—		—			—			—			—			—			5			—			—			—
GrameenPhone — Bangladesh		—		—			4			4			—			—			10			—			—			1
Other mobile operations		—		—			—			—			—			—			—			1			—			—
Fixed		—		2			24			(1	)		—			—			—			65			(12	)		1
Broadcast		—		—			—			1			—			—			1			—			2			—
EDB Business Partner		—		—			—			—			—			—			—			—			—			—
Other business units		2		—			32			(13	)		—			—			—			1			—			—
Corporate functions and Group activities		1		23			2			5			—			28			1			4			9			30
Eliminations		—		—			(16	)		1			—			—			—			1			—			—

Total losses on disposal of fixed assets and operations		3		26			50			(5	)		8			32			40			72			3			37


Expenses for workforce reductions and loss contracts
Telenor Mobile — Norway		4		(4	)		—			24			(1	)		—			—			(1	)		9			3
Sonofon — Denmark		—		—			—			28			—			3			—			9			3			2
Telenor Mobile — Sweden		—		—			—			562			—			—			123			291			48			(8	)
Kyivstar — Ukraine		—		—			—			—			—			—			—			—			—			—
Pannon — Hungary		—		11			4			1			—			—			—			10			—			—
DTAC — Thailand		—		—			—			—			—			—			—			—			—			—
DiGi — Malaysia		—		—			—			—			—			—			—			—			—			—
GrameenPhone — Bangladesh		—		—			—			—			—			—			—			—			—			—
Other mobile operations		—		—			—			—			—			—			—			—			—			—
Fixed		18		24			5			39			7			9			135			8			25			22
Broadcast		—		1			1			3			—			—			—			—			—			—
EDB Business Partner		—		27			16			(10	)		—			5			—			13			—			—
Other business units		1		1			15			11			(1	)		1			7			8			6			2
Corporate functions and Group activities		2		103			1			10			(3	)		5			11			16			1			9
Eliminations		—		—			—			(562	)		—			(1	)		(2	)		(242	)		—			(1	)
Total workforce reductions and loss contracts		25		163			42			106			2			22			274			112			92			29

Total other (income) and expenses		20		(169	)		17			(20	)		(21	)		(66	)		220			109			64			27


Telenor group	2004												2005												2006
(NOK in millions)	Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4			Q1			Q2			Q3	Q4

Write-downs
Telenor Mobile — Norway		—			1			3			11			(2	)		12			4			2			—			33
Sonofon — Denmark		—			—			—			3,290			—			—			—			—			—			—
Telenor Mobile — Sweden		—			—			—			75			—			—			—			—			—			—
Kyivstar — Ukraine		—			—			—			—			—			—			—			15			—			—
Pannon — Hungary		—			—			—			21			—			2			1			4			—			33
DTAC — Thailand		—			—			—			—			—			—			—			—			—			—
DiGi — Malaysia		—			—			—			—			1			—			1			3			—			7
GrameenPhone — Bangladesh		—			—			—			3			—			—			—			—			—			—
Other mobile operations		—			—			—			—			—			—			—			—			—			—
Fixed		—			—			—			40			(22	)		2			(2	)		609			—			15
Broadcast		—			—			—			44			—			4			—			(57	)		3			—
EDB Business Partner		—			—			—			—			—			—			—			—			—			—
Other business units		3			—			36			2			—			—			—			8			—			—
Corporate functions and Group activities		—			—			2			—			—			—			—			2			—			—
Eliminations		—			—			—			—			—			—			—			—			—			—
Total write-downs		3			1			41			3,486			(23	)		20			4			586			3			88


Special items associated companies
(Gains) losses on disposal of ownership interests		—			(9	)		(8	)		(15	)		—			(3	)		7			(3	)		—			(6	)
Write-downs associated companies		—			—			—			—			—			—			—			172			—			11
Write-downs BB		—			—			—			—			—			—			—			—			—			—
Other write-downs associated companies		—			—			—			—			—			—			—			—			—			—
(Gains) losses on disposal and write-downs of associated companies		—			(9	)		(8	)		(15	)		—			(3	)		7			169			—			5


Net (gains) losses and write-downs financial items		(2,613	)		(17	)		(22	)		(21	)		(417	)		(67	)		(3	)		(31	)		(1,815	)		15

RECONCILIATIONS


Telenor group	2004												2005												2006
(NOK in millions)	Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4			Q1			Q2			Q3	Q4

Profit from total operations		3,423			2,072			2,062			(144	)		1,970			2,328			2,649			2,187			4,230			2,874
Profit (loss) from discontinued operations		—			—			—			—			—			—			—			(4	)		(22	)		—
Profit from continuing operations		3,423			2,072			2,062			(144	)		1,970			2,328			2,649			2,191			4,252			2,874
Taxes		(1,610	)		(911	)		(926	)		986			(845	)		(997	)		(1,136	)		(475	)		(1,573	)		(1,063	)
Profit before taxes		5,033			2,983			2,988			(1,130	)		2,815			3,325			3,785			2,666			5,825			3,937
Net financial items		2,271			(297	)		(238	)		(215	)		151			(28	)		(122	)		(348	)		1,206			(724	)
Associated companies		225			290			331			140			239			494			435			65			312			362
Depreciation and amortization		2,508			2,707			2,719			2,703			2,704			2,751			2,902			3,187			3,546			3,543
Write-downs		3			1			41			3,486			(23	)		20			4			586			3			88
EBITDA		5,048			5,698			5,655			5,134			5,106			5,630			6,378			6,722			7,856			7,930


EBITDA		5,048			5,698			5,655			5,134			5,106			5,630			6,378			6,722			7,856			7,930
Other (income) and expenses		20			(169	)		17			(20	)		(21	)		(66	)		220			109			64			27
EBITDA before other income and expenses		5,068			5,529			5,672			5,114			5,085			5,564			6,598			6,831			7,920			7,957


Operating profit		2,537			2,990			2,895			(1,055	)		2,425			2,859			3,472			2,949			4,307			4,299
Write-downs		3			1			41			3,486			(23	)		20			4			586			3			88
Other (income) and expenses		20			(169	)		17			(20	)		(21	)		(66	)		220			109			64			27
Adjusted operating profit		2,560			2,822			2,953			2,411			2,381			2,813			3,696			3,644			4,374			4,414


Profit before taxes		5,033			2,983			2,988			(1,130	)		2,815			3,325			3,785			2,666			5,825			3,937
Net (gains) losses and write-downs financial items		(2,613	)		(17	)		(22	)		(21	)		(417	)		(67	)		(3	)		(31	)		(1,815	)		15
(Gains) losses on disposal and write downs of associated companies		—			(9	)		(8	)		(15	)		—			(3	)		7			169			—			5
Write-downs		3			1			41			3,486			(23	)		20			4			586			3			88
Other (income) and expenses		20			(169	)		17			(20	)		(21	)		(66	)		220			109			64			27
Adjusted profit before taxes		2,443			2,789			3,016			2,300			2,354			3,209			4,013			3,499			4,077			4,072

Capex


Telenor group	2004										2005												2006
(NOK in millions)	Q1		Q2			Q3			Q4		Q1			Q2			Q3			Q4			Q1			Q2			Q3	Q4

Telenor Mobile — Norway		214		255			332			172		194			343			220			461			129			143
Sonofon — Denmark		66		144			102			76		28			140			137			757			109			170
Telenor Mobile — Sweden		4		4			3			6		—			—			—			—			135			137
Kyivstar — Ukraine		331		566			687			1,024		735			919			1,106			890			830			770
Pannon — Hungary		104		121			121			820		109			243			150			261			71			235
Promonte — Montenegro		—		—			3			13		5			4			8			21			4			7
DTAC — Thailand		—		—			—			—		—			—			—			146			605			543
DiGi — Malaysia		103		162			228			427		108			178			310			574			226			199
GrameenPhone — Bangladesh		160		258			418			482		496			357			590			1,153			389			516
Telenor — Pakistan		—		1,821			19			153		1,139			(91	)		299			496			351			754
Fixed — Norway		355		315			346			457		337			503			412			917			479			371
Fixed Sweden		15		72			58			134		40			48			142			255			83			230
Fixed Denmark		—		—			—			—		—			—			40			57			55			42
Fixed — Other/Fixed Eliminations		8		(2	)		15			18		4			5			8			8			—			—
Broadcast		23		70			716			71		47			96			116			133			92			106
Other units		88		241			99			269		125			193			193			321			156			203
Eliminations		—		(15	)		(7	)		—		(7	)		(15	)		(11	)		(14	)		(11	)		(4	)

Total capex		1,471		4,012			3,140			4,122		3,360			2,923			3,720			6,436			3,703			4,422

Investments in businesses


Telenor group	2004									2005									2006
(NOK in millions)	Q1		Q2			Q3		Q4		Q1		Q2		Q3		Q4			Q1		Q2		Q3	Q4

Telenor Mobile — Norway		—		—			—		52		—		—		—		—			—		—
Sonofon — Danmark		3,641		145			—		—		—		—		—		4			—		—
Telenor Mobile — Sweden		—		—			—		—		—		—		—		—			7,739		8
Kyivstar — Ukraine		—		35			—		—		—		—		—		—			—		—
Pannon — Hungary		—		—			—		—		—		—		—		—			—		—
Promonte — Montenegro		—		—			540		1		—		—		—		—			—		—
DTAC — Thailand		—		—			—		—		—		—		—		2,664			85		31
DiGi — Malaysia		—		—			—		—		—		—		—		—			—		—
GrameenPhone — Bangladesh		—		—			—		298		—		—		—		—			—		—
Telenor — Pakistan		—		—			—		—		—		—		—		—			—		—
Fixed — Norway		—		1			—		1		43		1		—		—			1		—
Fixed Sweden		78		9			—		6		—		—		4,479		(27	)		460		75
Fixed Denmark		—		—			—		—		—		—		1,313		7			—		—
Fixed — Other/Fixed Eliminations		8		—			—		2		—		—		—		—			—		—
Broadcast		—		—			—		—		—		—		17		25			—		98
Other units		22		441			104		762		7		263		15		47			658		616
Eliminations		—		(337	)		—		—		—		—		—		—			—		—

Total investments in businesses		3,749		294			644		1,122		50		264		5,824		2,720			8,943		828

Telenor Mobile — Norway


	2004								2005								2006
(NOK in millions)	Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4		Q1		Q2		Q3	Q4

Subscription and traffic		1 846		1 968		2 044		2 021		1 927		2 003		2 098		2 120		2 023		2 170
Interconnection revenues		378		402		403		430		407		452		441		454		446		474
Mobile revenues company’s subscriptions		2 224		2 370		2 447		2 451		2 334		2 455		2 539		2 574		2 469		2 644

Other mobile revenues		304		405		434		370		362		453		484		526		532		505
Total mobile revenues		2 528		2 775		2 881		2 821		2 696		2 908		3 023		3 100		3 001		3 149

Non-mobile revenues		276		179		128		142		142		141		98		135		104		124

Total revenues ¹⁾		2 804		2 954		3 009		2 963		2 838		3 049		3 121		3 235		3 105		3 273

¹⁾ Of which internal revenues		311		315		311		289		278		313		299		281		266		257

EBITDA		1 002		1 081		1 103		1 119		1 001		1 066		1 218		1 186		1 323		1 365
Depreciation and amortization ²⁾		239		275		267		281		213		230		224		222		216		215
Write-downs ³⁾		—		1		3		11		- 2		12		4		2		—		33

Operating profit		763		805		833		827		790		824		990		962		1 107		1 117

²⁾ Of which amortization of Telenor’s net excess values		—		—		—		1		1		1		1		1		1		1
³⁾ Of which write-downs of Telenor’s net excess values		—		—		—		—		—		—		—		—		—		—

EBITDA/Total revenues (%)		35.7		36.6		36.7		37.8		35.3		35.0		39.0		36.7		42.6		41.7
Operating profit/Total revenues (%)		27.2		27.3		27.7		27.9		27.8		27.0		31.7		29.7		35.7		34.1
Capex		214		255		332		172		194		343		220		461		129		143
Investments in businesses		—		—		—		52		—		—		—		—		—		—


No. of mobile subscriptions (in thousands)		2 378		2 451		2 562		2 645		2 635		2 687		2 736		2 731		2 722		2 709
— of which prepaid		1 091		1 118		1 178		1 228		1 218		1 267		1 285		1 222		1 185		1 133
Average traffic minutes per subscription per month (AMPU) in the quarter		179		187		187		182		175		191		186		184		186		196
Average revenue per subscription per month (ARPU) in the quarter		315		332		328		318		297		308		314		317		305		324
— of which contract		464		491		499		491		453		465		475		472		446		461
— of which prepaid		147		146		129		119		117		129		133		136		126		141

Sonofon — Denmark


	2004												2005											2006
(NOK in millions)	Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4		Q1		Q2		Q3	Q4

Subscription and traffic		274			496			541			502			571			595			600			595		622		630
Interconnection revenues		140			280			274			292			300			328			325			347		348		338
Mobile revenues company’s subscriptions		414			776			815			794			871			923			925			942		970		968

Other mobile revenues		97			161			170			143			143			158			181			156		145		152
Total mobile revenues		511			937			985			937			1,014			1,081			1,106			1,098		1,115		1,120

Non-mobile revenues		159			288			281			306			179			227			250			236		238		227

Total revenues ¹⁾		670			1,225			1,266			1,243			1,193			1,308			1,356			1,334		1,353		1,347

¹⁾ Of which internal revenues		4			8			21			20			20			35			43			34		30		48

EBITDA		167			238			260			16			253			308			307			308		305		307
Depreciation and amortization ²⁾		189			355			369			277			353			328			308			296		286		271
Write-downs ³⁾		—			—			—			3,290			—			—			—			—		—		—

Operating profit (loss)		(22	)		(117	)		(109	)		(3,551	)		(100	)		(20	)		(1	)		12		19		36

²⁾ Of which amortization of Telenor’s net excess values		75			160			160			156			157			134			131			133		137		132
³⁾ Of which write-downs of Telenor’s net excess values		—			—			—			3,075			—			—			—			—		—		—

EBITDA/Total revenues (%)		24.9			19.4			20.5			1.3			21.2			23.5			22.6			23.1		22.5		22.8
Operating profit/Total revenues (%)	nm			nm			nm			nm			nm			nm			nm				0.9		1.4		2.7
Capex		66			144			102			76			28			140			137			757		109		170
Investments in businesses		3 641			145			—			—			—			—			—			4		—		—


No. of mobile subscriptions (in thousands)		987			1 203			1 253			1 275			1 232			1 250			1 261			1 284		1 299		1 310
— of which prepaid		250			451			485			462			413			420			420			425		429		436
Average traffic minutes per subscription per month (AMPU) in the quarter		147			157			139			151			153			182			183			195		200		209
Average revenue per subscription per month (ARPU) in the quarter		250			233			219			207			229			253			243			246		250		248
— of which contract		287			291			281			267			284			306			292			285		292		290
— of which prepaid		135			111			120			111			126			146			146			166		164		163

Telenor Mobile — Sweden


	2004												2005												2006
(NOK in millions)	Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4			Q1			Q2			Q3	Q4

Subscription and traffic		32			34			37			38			37			33			34			26			902			972
Interconnection revenues		9			15			13			15			15			18			15			12			206			235
Mobile revenues company’s subscriptions		41			49			50			53			52			51			49			38			1,108			1,207

Other mobile revenues		5			6			11			8			11			14			19			10			89			96
Total mobile revenues		46			55			61			61			63			65			68			48			1,197			1,303

Non-mobile revenues		—			—			—			—			—			—			—			—			104			127

Total revenues ¹⁾		46			55			61			61			63			65			68			48			1,301			1,430

¹⁾ Of which internal revenues		14			21			27			25			28			33			39			24			48			27

EBITDA		(25	)		(36	)		(45	)		(619	)		(10	)		(18	)		(139	)		(309	)		170			241
Depreciation and amortization ²⁾		8			7			8			26			—			—			—			—			358			395
Write-downs ³⁾		—			—			—			75			—			—			—			—			—			—

Operating profit (loss)		(33	)		(43	)		(53	)		(720	)		(10	)		(18	)		(139	)		(309	)		(188	)		(154	)

²⁾ Of which amortization of Telenor’s net excess values		—			—			—			—			—			—			—			—			52			64
³⁾ Of which write-downs of Telenor’s net excess values		—			—			—			—			—			—			—			—			—			—

EBITDA/Total revenues (%)	nm			nm			nm			nm			nm			nm			nm			nm				13.1			16.9
Operating profit/Total revenues (%)	nm			nm			nm			nm			nm			nm			nm			nm			nm			nm
Capex		4			4			3			6			—			—			—			—			135			137
Investments in businesses		—			—			—			—			—			—			—			—			7 739			8


No. of mobile subscriptions (in thousands)		84			92			96			105			107			99			97			95			1 660			1 676
— of which prepaid		48			55			56			57			56			51			50			48			575			571
Average traffic minutes per subscription per month (AMPU) in the quarter		73			96			104			108			113			141			144			129			160			185
Average revenue per subscription per month (ARPU) in the quarter		169			181			182			169			164			167			164			136			229			242
— of which contract		252			262			265			241			215			216			215			183			330			340
— of which prepaid		106			122			125			117			121			121			115			90			49			54

Kyivstar — Ukraine


	2004								2005								2006
(NOK in millions)	Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4		Q1		Q2		Q3	Q4

Subscription and traffic		610		703		838		810		807		1 158		1 437		1 720		1 749		1 952
Interconnection revenues		186		236		319		327		313		428		541		606		528		562
Mobile revenues company’s subscriptions		796		939		1 157		1 137		1 120		1 586		1 978		2 326		2 277		2 514

Other mobile revenues		16		27		54		25		23		30		72		33		36		50
Total mobile revenues		812		966		1 211		1 162		1 143		1 616		2 050		2 359		2 313		2 564

Non-mobile revenues		13		15		18		22		20		27		26		31		16		16

Total revenues ¹⁾		825		981		1 229		1 184		1 163		1 643		2 076		2 390		2 329		2 580

¹⁾ Of which internal revenues		—		—		1		1		1		2		2		1		—		1

EBITDA		505		592		772		712		632		911		1 148		1 359		1 432		1 596
Depreciation and amortization ²⁾		125		128		145		157		231		331		322		325		379		381
Write-downs ³⁾		—		—		—		—		—		—		—		15		—		—

Operating profit		380		464		627		555		401		580		826		1 019		1 053		1 215

²⁾ Of which amortization of Telenor’s net excess values		24		24		24		21		22		23		24		24		24		23
³⁾ Of which write-downs of Telenor’s net excess values		—		—		—		—		—		—		—		—		—		—

EBITDA/Total revenues (%)		61.2		60.3		62.8		60.1		54.3		55.4		55.3		56.9		61.5		61.9
Operating profit/Total revenues (%)		46.1		47.3		51.0		46.9		34.5		35.3		39.8		42.6		45.2		47.1
Capex		331		566		687		1 024		735		919		1 106		890		830		770
Investments in businesses		—		35		—		—		—		—		—		—		—		—


No. of mobile subscriptions (100% in thousands)		3 221		3 610		4 856		6 252		7 662		9 335		10 943		13 925		14 965		16 005
- of which prepaid		2 675		3 031		4 211		5 532		6 892		8 500		10 021		12 901		13 895		14 886
Average traffic minutes per subscription per month (AMPU) in the quarter		68		74		95		95		91		90		103		108		110		118
Average revenue per subscription per month (ARPU) in the quarter		84		93		95		68		53		62		66		64		53		54
- of which contract		191		213		223		184		165		187		200		197		175		180
- of which prepaid		62		69		72		52		40		49		53		53		43		45

Pannon — Hungary


	2004								2005								2006
(NOK in millions)	Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4		Q1		Q2		Q3	Q4

Subscription and traffic		872		872		1005		920		880		903		1025		960		926		913
Interconnection revenues		423		443		423		442		430		458		416		431		400		400
Mobile revenues company’s subscriptions		1 295		1 315		1 428		1 362		1 310		1 361		1 441		1 391		1 326		1 313

Other mobile revenues		25		39		46		32		28		44		52		20		23		35
Total mobile revenues		1 320		1 354		1 474		1 394		1 338		1 405		1 493		1 411		1 349		1 348

Non-mobile revenues		81		90		78		116		77		93		90		154		64		79

Total revenues ¹⁾		1 401		1 444		1 552		1 510		1 415		1 498		1 583		1 565		1 413		1 427

¹⁾ Of which internal revenues		1		2		—		3		2		2		2		4		3		2

EBITDA		556		556		561		420		517		484		650		534		540		567
Depreciation and amortization ²⁾		331		326		326		312		316		276		294		285		279		254
Write-downs ³⁾		—		—		—		21		—		2		1		4		—		33

Operating profit		225		230		235		87		201		206		355		245		261		280

²⁾ Of which amortization of Telenor’s net excess values		89		89		91		89		90		85		86		84		84		79
³⁾ Of which write-downs of Telenor’s net excess values		—		—		—		—		—		—		—		—		—		—

EBITDA/Total revenues (%)		39.7		38.5		36.1		27.8		36.5		32.3		41.1		34.1		38.2		39.7
Operating profit/Total revenues (%)		16.1		15.9		15.1		5.8		14.2		13.8		22.4		15.7		18.5		19.6
Capex		104		121		121		820		109		243		150		261		71		235
Investments in businesses		—		—		—		—		—		—		—		—		—		—


No. of mobile subscriptions (in thousands)		2 596		2 588		2 595		2 770		2 792		2 824		2 856		2 929		2 939		2 947
- of which prepaid		1 977		1 935		1 886		1 991		1 955		1 915		1 894		1 904		1 878		1 854
Average traffic minutes per subscription per month (AMPU) in the quarter		111		121		127		131		125		143		145		149		143		159
Average revenue per subscription per month (ARPU) in the quarter		165		170		184		171		157		162		166		162		150		148
- of which contract		399		389		400		356		327		316		314		299		272		254
- of which prepaid		92		96		103		96		84		89		89		86		80		86

Promonte — Montenegro


	2004									2005								2006
(NOK in millions)	Q1		Q2		Q3		Q4			Q1		Q2		Q3		Q4		Q1		Q2		Q3	Q4

Total revenues		—		—		82		118			104		123		180		112		114		139
EBITDA		—		—		45		46			55		60		98		47		55		65
Operating profit (loss) ¹⁾²⁾		—		—		26		(2	)		12		18		58		7		16		27
¹⁾ Of which amortization of Telenor’s net excess values		—		—		7		25			20		20		20		20		20		20
²⁾ Of which write-downs of Telenor’s net excess values		—		—		—		—			—		—		—		—		—		—
Capex		—		—		3		13			5		4		8		21		4		7


No. of mobile subscriptions (in thousands)		—		—		340		279			279		303		394		310		324		363
- of which prepaid		—		—		297		234			235		263		352		265		276		309
Average traffic minutes per subscription per month (AMPU) in the quarter		—		—		113		87			91		105		109		92		104		121
Average revenue per subscription per month (ARPU) in the quarter		—		—		139		107			115		129		126		95		111		120
- of which contract		—		—		309		284			288		338		339		269		284		297
- of which prepaid		—		—		111		79			82		97		103		71		81		90

DTAC — Thailand


	2004								2005								2006
(NOK in millions)	Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4		Q1		Q2		Q3	Q4

Subscription and traffic		—		—		—		—		—		—		—		1 074		1 852		1 760
Interconnection revenues		—		—		—		—		—		—		—		25		33		33
Mobile revenues company’s subscriptions		—		—		—		—		—		—		—		1 099		1 885		1 793

Other mobile revenues		—		—		—		—		—		—		—		74		131		85
Total mobile revenues		—		—		—		—		—		—		—		1 173		2 016		1 878

Non-mobile revenues		—		—		—		—		—		—		—		18		16		15

Total revenues ¹⁾		—		—		—		—		—		—		—		1 191		2 032		1 893

¹⁾ Of which internal revenues		—		—		—		—		—		—		—		6		11		8

EBITDA		—		—		—		—		—		—		—		445		719		698
Depreciation and amortization ²⁾		—		—		—		—		—		—		—		220		337		335
Write-downs ³⁾		—		—		—		—		—		—		—		—		—		—

Operating profit		—		—		—		—		—		—		—		225		382		363

²⁾ Of which amortization of Telenor’s net excess values		—		—		—		—		—		—		—		35		51		50
³⁾ Of which write-downs of Telenor’s net excess values		—		—		—		—		—		—		—		—		—		—

EBITDA/Total revenues (%)		—		—		—		—		—		—		—		37.4		35.4		36.9
Operating profit/Total revenues (%)		—		—		—		—		—		—		—		18.9		18.8		19.2
Capex		—		—		—		—		—		—		—		146		605		543
Investments in businesses		—		—		—		—		—		—		—		2 664		85		31


No. of mobile subscriptions (100% in thousands)		—		—		—		—		—		—		—		8 677		9 823		10 622
— of which prepaid		—		—		—		—		—		—		—		7 212		8 185		8 806
Average traffic minutes per subscription per month (AMPU) in the quarter		—		—		—		—		—		—		—		231		295		327
Average revenue per subscription per month (ARPU) in the quarter		—		—		—		—		—		—		—		71		70		62
— of which contract		—		—		—		—		—		—		—		161		157		132
— of which prepaid		—		—		—		—		—		—		—		54		53		45

DiGi — Malaysia


	2004								2005								2006
(NOK in millions)	Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4		Q1		Q2		Q3	Q4

Subscription and traffic		642		662		751		739		792		924		1 035		1 198		1 279		1 331
Interconnection revenues		147		137		144		143		137		143		155		159		166		127
Mobile revenues company’s subscriptions		789		799		895		882		929		1 067		1 190		1 357		1 445		1 458

Other mobile revenues		17		18		17		13		14		15		18		18		21		20
Total mobile revenues		806		817		912		895		943		1 082		1 208		1 375		1 466		1 478

Non-mobile revenues		130		141		136		109		91		79		77		77		80		66

Total revenues ¹⁾		936		958		1 048		1 004		1 034		1 161		1 285		1 452		1 546		1 544

¹⁾ Of which internal revenues		1		1		1		—		1		—		1		2		2		1

EBITDA		426		410		453		443		451		499		560		632		700		700
Depreciation and amortization ²⁾		229		226		231		215		257		253		255		273		252		227
Write-downs ³⁾		—		—		—		—		1		—		1		3		—		7

Operating profit		197		184		222		228		193		246		304		356		448		466

²⁾ Of which amortization of Telenor’s net excess values		19		18		18		17		17		17		13		4		4		4
³⁾ Of which write-downs of Telenor’s net excess values		—		—		—		—		—		—		—		—		—		—

EBITDA/Total revenues (%)		45.5		42.8		43.2		44.1		43.6		43.0		43.6		43.5		45.3		45.3
Operating profit/Total revenues (%)		21.0		19.2		21.2		22.7		18.7		21.2		23.7		24.5		29.0		30.2
Capex		103		162		228		427		108		178		310		574		226		199
Investments in businesses		—		—		—		—		—		—		—		—		—		—


No. of mobile subscriptions (100% in thousands)		2 413		2 583		2 804		3 239		3 461		3 765		4 187		4 795		5 086		5 440
— of which prepaid		2 301		2 453		2 653		3 067		3 259		3 525		3 880		4 441		4 704		5 018
Average traffic minutes per subscription per month (AMPU) in the quarter		167		164		170		165		163		170		175		169		162		163
Average revenue per subscription per month (ARPU) in the quarter		113		107		110		98		92		99		100		102		97		93
— of which contract		312		312		297		238		233		216		192		174		172		180
— of which prepaid		104		97		100		90		84		93		93		97		92		86

GrameenPhone — Bangladesh


	2004								2005								2006
(NOK in millions)	Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4		Q1		Q2		Q3	Q4

Subscription and traffic		470		500		565		529		598		659		715		769		871		911
Interconnection revenues		9		20		26		35		34		39		52		63		73		78
Mobile revenues company’s subscriptions		479		520		591		564		632		698		767		832		944		989

Other mobile revenues		7		6		5		6		5		5		6		6		6		5
Total mobile revenues		486		526		596		570		637		703		773		838		950		994

Non-mobile revenues		3		3		2		—		3		2		2		12		5		3

Total revenues ¹⁾		489		529		598		570		640		705		775		850		955		997

¹⁾ Of which internal revenues		—		—		—		—		—		—		—		1		—		1

EBITDA		283		309		383		338		329		334		441		455		659		488
Depreciation and amortization ²⁾		34		51		58		72		77		89		107		166		159		148
Write-downs ³⁾		—		—		—		3		—		—		—		—		—		—

Operating profit		249		258		325		263		252		245		334		289		500		340

²⁾ Of which amortization of Telenor’s net excess values		—		—		—		—		—		—		—		—		—		—
³⁾ Of which write-downs of Telenor’s net excess values		—		—		—		—		—		—		—		—		—		—

EBITDA/Total revenues (%)		57.9		58.4		64.0		59.3		51.4		47.4		56.9		53.5		69.0		48.9
Operating profit/Total revenues (%)		50.9		48.8		54.3		46.1		39.4		34.8		43.1		34.0		52.4		34.1
Capex		160		258		418		482		496		357		590		1 153		389		516
Investments in businesses		—		—		—		298		—		—		—		—		—		—


No. of mobile subscriptions (100% in thousands)		1 520		1 795		2 024		2 388		2 928		3 704		4 215		5 542		6 427		8 459
— of which prepaid		1 258		1 501		1 730		2 092		2 625		3 375		3 860		5 159		6 030		8 015
Average traffic minutes per subscription per month (AMPU) in the quarter		239		246		249		241		237		223		223		250		196		213
Average revenue per subscription per month (ARPU) in the quarter		120		106		103		87		81		69		65		56		51		45
— of which contract		331		287		302		257		288		284		282		258		258		234
— of which prepaid		71		69		67		60		54		47		45		39		37		33

Telenor Pakistan


	2004											2005												2006
(NOK in millions)	Q1		Q2			Q3			Q4			Q1			Q2			Q3			Q4			Q1			Q2			Q3	Q4

Total revenues		—		—			—			—			1			48			76			140			215			265
EBITDA		—		(13	)		(20	)		(45	)		(133	)		(172	)		(134	)		(133	)		(77	)		(117	)
Operating profit (loss) ¹⁾²⁾		—		(13	)		(20	)		(45	)		(147	)		(232	)		(201	)		(218	)		(175	)		(220	)
¹⁾ Of which amortization of Telenor’s net excess values		—		—			—			—			—			—			—			—			—			—
²⁾ Of which write-downs of Telenor’s net excess values		—		—			—			—			—			—			—			—			—			—
Capex		—		1,821			19			153			1,139			(91	)		299			496			351			754


No. of mobile subscriptions (in thousands)		—		—			—			—			344			836			1,200			1,868			2,527			3,205
- of which prepaid		—		—			—			—			342			829			1,183			1,836			2,495			3,165
Average traffic minutes per subscription per month (AMPU) in the quarter		—		—			—			—			—			74			93			131			136			146
Average revenue per subscription per month (ARPU) in the quarter		—		—			—			—			—			22			25			30			32			30
- of which contract		—		—			—			—			—			154			99			72			59			59
- of which prepaid		—		—			—			—			—			21			24			29			31			30

FIXED


	2004												2005												2006
(NOK in millions)	Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4			Q1			Q2			Q3	Q4

Revenues
Norway		4,483			4,427			4,282			4,353			4,163			4,367			4,151			4,186			4,178			3,983
Other operations		469			474			419			467			436			418			840			887			919			1,047
Eliminations		(29	)		(24	)		(26	)		(39	)		(28	)		(32	)		(27	)		(48	)		(30	)		(31	)

Total revenues ¹⁾		4,923			4,877			4,675			4,781			4,571			4,753			4,964			5,025			5,067			4,999

¹⁾ Of which internal revenues

EBITDA		1,632			1,631			1,515			1,560			1,408			1,504			1,430			1,543			1,559			1,567
Depreciation and amortization ²⁾		954			897			855			867			783			729			874			850			761			733
Write-downs ³⁾		—			—			—			40			(22	)		2			(2	)		609			—			15

Operating profit		678			734			660			653			647			773			558			84			798			819

²⁾ Of which amortization of Telenor’s net excess values		—			—			1			6			1			2			69			(6	)		33			33
³⁾ Of which write-downs of Telenor’s net excess values		—			—			—			(22	)		(31	)		—			(3	)		10			—			—

EBITDA/Total revenues (%)		33.2			33.4			32.4			32.6			30.8			31.6			28.8			30.7			30.8			31.3
Operating profit/Total revenues (%)		13.8			15.1			14.1			13.7			14.2			16.3			11.2			1.7			15.7			16.4
Capex		378			385			419			609			381			556			602			1,237			617			643
Investments in businesses		86			10			—			9			43			1			5,792			(20	)		461			75

Fixed — Norway


	2004								2005											2006
(NOK in millions)	Q1		Q2		Q3		Q4		Q1			Q2		Q3			Q4			Q1		Q2		Q3	Q4

Revenues
Telephony		2,183		2,117		1,959		2,009		1,871			1,867		1,743			1,751			1,703		1,627
xDSL/Internet		426		417		444		466		461			508		534			536			568		581
Data services		247		267		259		249		232			243		250			238			215		199
Other revenues		456		386		428		386		342			400		357			366			357		315

Total retail revenues		3,312		3,187		3,090		3,110		2,906			3,018		2,884			2,891			2,843		2,722

Wholesale revenues		1,171		1,240		1,192		1,243		1,257			1,349		1,267			1,295			1,335		1,261

Total revenues ¹⁾		4,483		4,427		4,282		4,353		4,163			4,367		4,151			4,186			4,178		3,983

¹⁾ Of which internal revenues		438		454		428		522		463			522		582			623			545		510

EBITDA		1,631		1,606		1,523		1,570		1,438			1,532		1,354			1,377			1,390		1,417
Depreciation and amortization ²⁾		880		819		778		774		705			658		652			692			602		561
Write-downs ³⁾		—		—		—		2		(22	)		—		(2	)		(1	)		—		13

Operating profit		751		787		745		794		755			874		704			686			788		843

²⁾ Of which amortization of Telenor’s net excess values		—		—		1		1		—			—		—			—			—		—
³⁾ Of which write-downs of Telenor’s net excess values		—		—		—		2		(31	)		—		(3	)		(2	)		—		—

EBITDA/Total revenues (%)		36.4		36.3		35.6		36.1		34.5			35.1		32.6			32.9			33.3		35.6
Operating profit/Total revenues (%)		16.8		17.8		17.4		18.2		18.1			20.0		17.0			16.4			18.9		21.2
Capex		355		315		346		457		337			503		412			917			479		371
Investments in businesses		—		1		—		1		43			1		—			—			1		—


Retail market
No. of Telephony subscriptions (in thousands)		1,932		1,886		1,838		1,800		1,757			1,705		1,664			1,622			1,577		1,545
- of which PSTN subscriptions (in thousands)		1,248		1,219		1,196		1,182		1,165			1,139		1,118			1,089			1,054		1,017
- of which ISDN subscriptions (in thousands)		684		667		642		618		592			562		538			509			479		454
- of which VoIP subscriptions (in thousands)		—		—		—		—		—			4		8			24			44		74
No. of xDSL subscriptions (in thousands)		208		235		270		326		385			415		444			475			511		527
Telephony generated traffic (million minutes)		3,725		3,279		2,851		3,171		2,848			2,644		2,289			2,502			2,277		1,997
Wholesale market
No. of Telephony subscriptions (in thousands)		227		266		285		301		309			316		316			314			316		308
- of which PSTN subscriptions (in thousands)		151		170		180		188		192			200		202			202			203		201
- of which ISDN subscriptions (in thousands)		76		96		105		113		117			116		114			112			113		107
No. of xDSL subscriptions (in thousands)		76		86		90		91		77			87		97			109			117		123
No. of LLUB (in thousands)		96		108		123		145		172			192		209			235			254		265

Fixed — Sweden


	2004												2005												2006
(NOK in millions)	Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4			Q1			Q2			Q3	Q4

External revenues		403			404			350			400			367			342			622			650			724			876
Internal revenues		23			26			26			22			25			32			32			26			3			(10	)

Tota revenues		426			430			376			422			392			374			654			676			727			866


EBITDA		(3	)		24			(9	)		(3	)		(29	)		(27	)		31			183			109			100
Depreciation and amortization ²⁾		61			65			65			71			64			63			165			124			113			115
Write-downs ³⁾		—			—			—			36			—			—			—			608			—			2

Operating profit (loss)		(64	)		(41	)		(74	)		(110	)		(93	)		(90	)		(134	)		(549	)		(4	)		(17	)

²⁾ Of which amortization of Telenor’s net excess values		—			—			—			5			1			2			69			(25	)		23			24
³⁾ Of which write-downs of Telenor’s net excess values		—			—			—			(24	)		—			—			—			12			—			—

EBITDA/Total revenues (%)	nm			nm			nm			nm			nm			nm				4.7			27.1			15.0			11.5
Operating profit/Total revenues (%)	nm			nm			nm			nm			nm			nm			nm			nm			nm			nm
Capex		15			72			58			134			40			48			142			255			83			230
Investments in businesses		78			9			—			6			—			—			4,479			(27	)		460			75


Bredbandsbolaget
No. of xDSL subscriptions (in thousands)		—			—			—			—			—			—			200			214			229			242
No. of LAN subscriptions (in thousands)		—			—			—			—			—			—			156			155			156			158
No. of VoIP subscriptions (in thousands)		—			—			—			—			—			—			91			104			119			134
Glocalnet
No. of xDSL subscriptions (in thousands)		—			—			—			—			—			—			—			—			113			117
No. of PSTN subscriptions (in thousands)		—			—			—			—			—			—			—			—			285			284

Fixed — Denmark


	2004								2005								2006
(NOK in millions)	Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4		Q1		Q2		Q3	Q4

External revenues		—		—		—		—		—		—		142		164		174		180
Internal revenues		—		—		—		—		—		—		—		—		—		1

Tota revenues		—		—		—		—		—		—		142		164		174		181


EBITDA		—		—		—		—		—		—		48		49		55		59
Depreciation and amortization ²⁾		—		—		—		—		—		—		46		22		43		57
Write-downs ³⁾		—		—		—		—		—		—		—		—		—		—

Operating profit		—		—		—		—		—		—		2		27		12		2

²⁾ Of which amortization of Telenor’s net excess values		—		—		—		—		—		—		—		19		10		9
³⁾ Of which write-downs of Telenor’s net excess values		—		—		—		—		—		—		—		—		—		—

EBITDA/Total revenues (%)		—		—		—		—		—		—		33.8		29.9		31.6		32.6
Operating profit/Total revenues (%)		—		—		—		—		—		—		1.4		16.5		6.9		1.1
Capex		—		—		—		—		—		—		40		57		55		42
Investments in businesses		—		—		—		—		—		—		1,313		7		—		—


No. of xDSL subscriptions (in thousands)		—		—		—		—		—		—		109		122		138		152
No. of VoIP subscriptions (in thousands)		—		—		—		—		—		—		18		26		37		41

BROADCAST


	2004												2005												2006
(NOK in millions)	Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4			Q1			Q2			Q3	Q4

Revenues
Distribution		1,061			1,064			1,072			1,112			1,139			1,147			1,139			1,190			1,251			1,299
Transmission		303			310			303			295			297			298			299			313			312			317
Other/Eliminations		(58	)		(39	)		(45	)		(32	)		(46	)		(44	)		(46	)		(37	)		(46	)		(52	)

Total revenues ¹⁾		1,306			1,335			1,330			1,375			1,390			1,401			1,392			1,466			1,517			1,564

¹⁾ Of which internal revenues		35			33			33			34			28			35			33			35			35			38

EBITDA
Distribution		192			218			213			126			213			242			216			147			234			251
Transmission		153			161			183			191			174			175			181			183			175			191
Other/Eliminations		4			13			29			15			(7	)		(6	)		(3	)		1			(1	)		(5	)

Total EBITDA		349			392			425			332			380			411			394			331			408			437

Depreciation and amortization ²⁾		187			174			173			170			144			133			133			144			154			153
Write-downs ³⁾		—			—			—			44			—			4			—			(57	)		3			—

Operating profit		162			218			252			118			236			274			261			244			251			284

Of which:
Distribution		74			115			117			(4	)		143			179			159			13			172			189
Transmission		87			94			110			118			106			107			111			240			89			110
Other/Eliminations		1			9			25			4			(13	)		(12	)		(9	)		(9	)		(10	)		(15	)

²⁾ Of which amortization of Telenor’s net excess values		14			17			16			16			14			14			14			14			11			10
³⁾ Of which write-downs of Telenor’s net excess values		—			—			—			25			—			—			—			75			—			—

EBITDA/Total revenues (%)		26.7			29.4			32.0			24.1			27.3			29.3			28.3			22.6			26.9			27.9
Operating profit/Total revenues (%)		12.4			16.3			18.9			8.6			17.0			19.6			18.8			16.6			16.5			18.2
Capex		23			70			716			71			47			96			116			133			92			106
Investments in businesses		—			—			—			—			—			—			17			25			—			98


No. of DTH pay TV subscribers (in thousands)		778			782			800			824			851			853			876			906			918			921
No. of Cable TV subscribers (in thousands)		605			611			614			624			616			619			636			681			684			687
No. of households in satellite master antenna TV networks (in thousands)		1,132			1,161			1,190			1,212			1,197			1,205			1,184			1,177			1,120			1,119
No. of Cable TV Internet access (in thousands)		34			35			38			44			48			50			53			73			78			81

OTHER UNITS


	2004												2005												2006
(NOK in millions)	Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4			Q1			Q2			Q3	Q4

Revenues
EDB Business Partner		1,047			1,044			1,042			1,154			1,231			1,285			1,217			1,258			1,335			1,449
Satellite Services		601			616			595			573			589			592			610			637			607			596
Venture		217			245			213			226			116			125			123			126			133			146
Corporate functions and Group activities		529			552			515			558			582			603			517			564			522			568
Other		70			62			28			14			18			9			(1	)		(1	)		—			1
Eliminations		(94	)		(106	)		(97	)		(64	)		(69	)		(72	)		(46	)		(46	)		(45	)		(45	)

Total revenues ¹⁾		2,370			2,413			2,296			2,461			2,467			2,542			2,420			2,538			2,552			2,715

¹⁾ Of which internal revenues		734			710			717			768			788			803			647			669			638			657

EBITDA
EDB Business Partner		138			456			188			196			177			187			224			197			191			141
Satellite Services		125			103			84			97			68			90			115			120			77			88
Venture		(3	)		1			62			70			6			(1	)		7			(14	)		(17	)		(4	)
Corporate functions and Group activities		(95	)		(75	)		(79	)		(168	)		(6	)		(34	)		67			(104	)		(104	)		(131	)
Other/eliminations		16			24			(52	)		26			(3	)		(11	)		11			(5	)		(11	)		(10	)

Total EBITDA		181			509			203			221			242			232			423			194			136			84

Depreciation and amortization ²⁾		232			260			240			243			250			262			258			263			243			277
Write-downs ³⁾		3			1			37			2			—			—			—			10			—			—

Operating profit (loss)		(54	)		248			(74	)		(24	)		(8	)		(30	)		165			(79	)		(107	)		(193	)

Of which
EDB Business Partner		89			396			121			130			81			80			120			96			99			37
Satellite Services		55			36			17			25			4			26			48			47			14			25
Venture		(14	)		(7	)		55			63			2			(6	)		3			(22	)		(25	)		(13	)
Corporate functions and Group activities		(181	)		(182	)		(178	)		(268	)		(92	)		(120	)		(16	)		(192	)		(182	)		(229	)
Other/eliminations		(3	)		5			(89	)		26			(3	)		(10	)		10			(8	)		(13	)		(13	)

²⁾ Of which amortization of Telenor’s net excess values		2			2			2			2			2			2			3			1			3			3
³⁾ Of which write-downs of Telenor’s net excess values		2			—			—			1			—			—			—			5			—			—

Capex		88			241			99			269			125			193			193			321			156			203
Investments in businesses		22			441			104			762			7			263			15			47			658			616

PRESENTATION MATERIAL

Q2 2006

In the second quarter of 2006, Telenor’s revenues amounted to NOK 22.6 billion, which was an increase of 37% compared to the second quarter of 2005. Profit before taxes was NOK 3.9 billion.

Delivering a solid quarter

Highlights second quarter 2006:

•		96 million mobile subscriptions

•		Revenue growth of 37% – underlying growth of 12%

•		EBITDA margin increased from 34% to 35%

•		Strong operating cash flow

‘We are delivering yet another solid quarter, with high growth in revenues and increased EBITDA margin. We are very satisfied that several of our mobile operations are performing so well in their markets. In particular, GrameenPhone improved its market position by increasing its customer base by more than 30% during this quarter alone. DTAC also increased its market share, but is facing price erosion in the Thai market. In the second quarter, the companies in which we have ownership interests increased the number of mobile subscriptions by 6 million, reaching a customer base of 96 million.

We are constantly evaluating how we can improve our performance. This can be seen in the strong margins within our mobile operations and the positive cost development in Fixed Norway. In Sweden, following recent acquisitions, we will reorganise the operations in order to reach our goal of becoming a leading provider of communication services’, said President and CEO of Telenor, Jon Fredrik Baksaas.

Key Figures


		2nd quarter				1st half-year			Year
(NOK in millions except earnings per share)	2006		2005		2006		2005		2005

Revenues		22 580		16 542		44 452		31 812		68 927
EBITDA before other income and expenses		7 957		5 564		15 877		10 649		24 078
EBITDA before other income and expenses/Revenues (%)		35.2		33.6		35.7		33.5		34.9
Adjusted operating profit		4 414		2 813		8 788		5 194		12 534
Adjusted operating profit/Revenues (%)		19.5		17.0		19.8		16.3		18.2
Profit after taxes and minority interests (Net income)		2 284		2 041		5 934		3 751		7 646

Earnings per share from total operations, basic, in NOK		1.35		1.19		3.51		2.17		4.47
Capex		4 422		2 923		8 125		6 283		16 439
Investments in businesses		828		264		9 771		314		8 858
Net interest-bearing liabilities						38 210		17 814		30 858

Extract from outlook for 2006

We are maintaining our outlook from the first quarter. For 2006, Telenor expects a revenue growth of around 30% with an EBITDA margin before other income and expenses above 34%. Capital expenditure as a proportion of revenues is expected to be above 20%.

Refer to page 9 for the full outlook for 2006, for definitions, refer to page 20.

Telenor’s operations

Unless otherwise stated, the statements below are related to Telenor’s development in the second quarter of 2006 compared to the second quarter of 2005.

Nordic Mobile Operations

Telenor Mobile — Norway


		2nd quarter				1st half-year			Year
(NOK in millions)	2006		2005		2006		2005		2005

Subscription and traffic		2 170		2 003		4 193		3 930		8 148
Interconnection revenues		474		452		920		859		1 754
Mobile revenues company’s subscriptions		2 644		2 455		5 113		4 789		9 902

Other mobile revenues		505		453		1 037		815		1 825
Total mobile revenues		3 149		2 908		6 150		5 604		11 727

Non-mobile revenues		124		141		228		283		516
Total revenues 1)		3 273		3 049		6 378		5 887		12 243

1) Of which internal revenues		257		313		523		591		1 171

EBITDA		1 365		1 066		2 688		2 067		4 471
Depreciation and amortization 2)		215		230		431		443		889
Write-downs		33		12		33		10		16
Operating profit		1 117		824		2 224		1 614		3 566

1) Of which amortization of Telenor’s net excess values		1		1		2		2		4

EBITDA/Total revenues (%)		41.7		35.0		42.1		35.1		36.5
Operating profit/Total revenues (%)		34.1		27.0		34.9		27.4		29.1
Capex		143		343		272		537		1 218
ARPU — monthly (NOK)		324		308		314		303		309
No. of subscriptions (in thousands)						2 709		2 687		2 731

•		The number of subscriptions decreased by 13,000 in the second quarter of 2006.

•		Telenor Mobile’s estimated market share was 55% in the second quarter compared to 56% in the first quarter of 2006.

•		ARPU increased due to higher average usage per subscription (AMPU) as a result of a higher share of contract subscriptions reaching 58% up from 53%.

•		Total mobile revenues increased by approximately 8% and were positively affected by an increase in the number of contract subscriptions and ARPU. Other mobile revenues increased due to higher revenues from the sale of capacity on a wholesale basis.

•		Non-mobile revenues decreased due to lower sales of customer equipment.

•		The EBITDA margin increased mainly due to higher total mobile revenues and lower costs, including sales and marketing costs.

•		Capital expenditure decreased primarily due to completion of EDGE roll-out in 2005.

•		Telenor Mobil won its case in the Appeal Court 3 April 2006, in which Telenor Mobil had been sued by Reitan group/Sense for charging excessive reseller prices in previous years. The case has been appealed to the Supreme Court.

Sonofon — Denmark


		2nd quarter						1st half-year				Year
(NOK in millions)	2006			2005			2006		2005			2005

Subscription and traffic		630			595			1 252		1 166			2 361
Interconnection revenues		338			328			686		628			1 300
Mobile revenues company’s subscriptions		968			923			1 938		1 794			3 661

Other mobile revenues		152			158			297		301			638
Total mobile revenues		1 120			1 081			2 235		2 095			4 299

Non-mobile revenues		227			227			465		406			892
Total revenues 1)		1 347			1 308			2 700		2 501			5 191

1) Of which internal revenues		48			35			78		55			132

EBITDA		307			308			612		561			1 176
Depreciation and amortization 2)		271			328			557		681			1 285
Operating profit (loss)		36			(20	)		55		(120	)		(109	)

2) Of which amortization of Telenor’s net excess values		132			134			269		291			555

EBITDA/Total revenues (%)		22.8			23.5			22.7		22.4			22.7
Operating profit/Total revenues (%)		2.7	nm					2.0	nm			nm
Capex		170			140			279		168			1 062
Investments in businesses		—			—			—		—			4
ARPU — monthly (NOK)		248			253			248		241			243
No. of subscriptions (in thousands)								1 310		1 250			1 284

Compared to the second quarter of 2005, the Norwegian Krone appreciated against the Danish Krone by approximately 2% in the second quarter of 2006.

	•		The number of subscriptions increased by 11,000 in the second quarter of 2006.

	•		Sonofon’s estimated market share was 27%, in line with the previous quarter.

	•		ARPU in local currency remained stable. Increased average usage driven by flat rate products was offset by a reduction of interconnect charges effective 1 May 2006.

	•		Total revenues in local currency increased by 6% primarily due to a higher contract subscription base.

	•		EBITDA measured in local currency increased by 2% mainly driven by higher revenues. This was partially offset by lower interconnect charges and higher handset subsidies as a result of the strong competition.

	•		Depreciation and amortization decreased mainly as a result of certain assets becoming fully depreciated.

	•		Increased capital expenditure was primarily related to roll-out of the UMTS network.

Telenor Mobile — Sweden


	2nd quarter						1st half-year						Year
(NOK in millions)	2006			2005			2006			2005			2005

Subscription and traffic		972			33			1 874			70			130
Interconnection revenues		235			18			441			33			60
Mobile revenues company’s subscriptions		1 207			51			2 315			103			190

Other mobile revenues		96			14			185			25			54
Total mobile revenues		1 303			65			2 500			128			244

Non-mobile revenues		127			—			231			—			—
Total revenues 1)		1 430			65			2 731			128			244

1) Of which internal revenues		27			33			75			61			124

EBITDA		241			(18	)		411			(28	)		(476	)
Depreciation and amortization 2)		395			—			753			—			—
Operating loss		(154	)		(18	)		(342	)		(28	)		(476	)

2) Of which amortization of Telenor’s net excess values		64			—			116			—			—

EBITDA/Total revenues (%)		16.9		nm				15.0		nm			nm
Capex		137			—			272			—			—
Investments in businesses		8			—			7 747			—			—
ARPU – monthly (NOK)		242			167			234			166			158
No. of subscriptions (in thousands)								1 676			99			95

The provisionally purchase price allocation of Mobile Sweden has been revised during the second quarter of 2006, which has resulted in a negative adjustment of EBITDA and depreciation and amortization for the first quarter of 2006 of NOK 31 million and NOK 25 million, respectively. The provisionally purchase price allocation is still due for adjustments. Mobile Sweden is consolidated with effect from 5 January 2006. Compared to the second quarter of 2005, the Norwegian Krone appreciated against the Swedish Krone by approximately 3% in the second quarter of 2006.

The following comments are related to the second quarter of 2006 compared to the whole first quarter of 2006.

	•		In the second quarter of 2006 the number of subscriptions increased by 16,000.

	•		Mobile Sweden’s estimated market share was stable at 17%.

	•		ARPU in local currency increased by 7% mainly due to increased average usage of voice and SMS, which lead to a 6% increase in total revenues measured in local currency.

	•		EBITDA increased primarily due to growth in revenues. In addition, the first quarter of 2006 included costs related to workforce reductions.

	•		In 2004, the Swedish regulatory authorities decided to reduce the interconnection charges in the Swedish market for mobile telephony. The regulator stated that the price cap should be SEK 0.64 with effect from 1 July 2006. The new interconnection charge is applicable for TeliaSonera, Tele2 and Telenor. Telenor does not agree with the new rates and will give a response to the regulator.

Central Eastern European Operations

Kyivstar — Ukraine


	2nd quarter				1st half-year				Year
(NOK in millions)	2006		2005		2006		2005		2005

Subscription and traffic		1 952		1 158		3 701		1 965		5 122
Interconnection revenues		562		428		1 090		741		1 888
Mobile revenues company’s subscriptions		2 514		1 586		4 791		2 706		7 010

Other mobile revenues		50		30		86		53		158
Total mobile revenues		2 564		1 616		4 877		2 759		7 168

Non-mobile revenues		16		27		32		47		104
Total revenues 1)		2 580		1 643		4 909		2 806		7 272

2) Of which amortization of Telenor’s net excess values		23		23		47		45		93

EBITDA		1 596		911		3 028		1 543		4 050
Depreciation and amortization 2)		381		331		760		562		1 209
Write-downs		—		—		—		—		15
Operating profit		1 215		580		2 268		981		2 826

1) Of which amortization of Telenor’s net excess values						24		22		93

EBITDA/Total revenues (%)		61.9		55.4		61.7		55.0		55.7
Operating profit/Total revenues (%)		47.1		35.3		46.2		35.0		38.9
Capex		770		919		1 600		1 654		3 650
ARPU – monthly (NOK)		54		62		54		58		61
No. of subscriptions (100% in thousands)						16 005		9 335		13 925

At the end of the second quarter of 2006, Telenor’s ownership interest in Kyivstar was 56.5%. Compared to the second quarter of 2005, the Norwegian Krone appreciated against the Ukrainian Hryvnia by approximately 1% in the second quarter of 2006.

	•		The number of subscriptions increased by 1 million during the second quarter of 2006 and by 6.7 million from the second quarter of 2005.

	•		Kyivstar maintained its position as market leader with an estimated market share of 44%.

	•		ARPU in local currency decreased by 12% mainly due to lower average prices as a result of increased competition and penetration.

	•		Total revenues in local currency increased by 57% due to a significant increase in the number of subscriptions, partially offset by lower ARPU.

	•		The EBITDA margin increased by 6.4 percentage points. EBITDA in local currency increased by 75%, primarily due to higher revenues, while operating expenses increased by approximately 30%.

	•		Depreciation and amortization increased as a result of a higher level of capital expenditure in the intervening quarters and a reduction of the estimated useful life of certain assets from 2005.

	•		Capital expenditure was mainly related to increased capacity to accommodate the subscription growth. The decrease in capital expenditure compared to the second quarter of 2005 was primarily as a result of lower prices from suppliers.

Pannon — Hungary


	2nd quarter				1st half-year				Year
(NOK in millions)	2006		2005		2006		2005		2005

Subscription and traffic		913		903		1 839		1 783		3 768
Interconnection revenues		400		458		800		888		1 735
Mobile revenues company’s subscriptions		1 313		1 361		2 639		2 671		5 503

Other mobile revenues		35		44		58		72		144
Total mobile revenues		1 348		1 405		2 697		2 743		5 647

Non-mobile revenues		79		93		143		170		414
Total revenues 1)		1 427		1 498		2 840		2 913		6 061

1) Of which internal revenues		2		2		5		4		10

EBITDA		567		484		1 107		1 001		2 185
Depreciation and amortization 2)		254		276		533		592		1 171
Write-downs		33		2		33		2		7
Operating profit		280		206		541		407		1 007

2) Of which amortization of Telenor’s net excess values		79		85		163		175		345

EBITDA/Total revenues (%)		39.7		32.3		39.0		34.4		36.1
Operating profit/Total revenues (%)		19.6		13.8		19.0		14.0		16.6
Capex		235		243		306		352		763
ARPU — monthly (NOK)		148		162		150		160		162
No. of subscriptions (in thousands)						2 947		2 824		2 929

Compared to the second quarter of 2005, the Norwegian Krone appreciated against the Hungarian Forint by approximately 8% in the second quarter of 2006.

	•		The number of subscriptions increased by 8,000 in the second quarter of 2006.

	•		Pannon’s market share was 33% compared to 34% at the end of the first quarter of 2006.

	•		ARPU in local currency remained stable. Lower average prices were offset by higher average usage.

	•		Total mobile revenues measured in local currency increased by 3% due to a higher number of contract subscriptions and increased average usage. The positive variance was somewhat offset by a decline in interconnection revenues as a result of price reductions, effective from the third quarter of 2005.

	•		The EBITDA margin improved primarily due to higher subscription and traffic revenues and lower costs related to sales and marketing activities. Measured in local currency, EBITDA increased by 25%.

ProMonte — Montenegro


	2nd quarter				1st half-year				Year
(NOK in millions)	2006		2005		2006		2005		2005

Total revenues		139		123		253		227		519
EBITDA		65		60		120		115		260
Operating profit 1)		27		18		43		30		95

Capex		7		4		11		9		38
No. of subscriptions (in thousands)		—		—		363		303		310
1) Includes amortization of Telenor’s net excess values		20		20		40		40		80

Compared to the second quarter of 2005, the Norwegian Krone appreciated against the Euro, which is the functional currency of Promonte, by approximately 2% in the second quarter of 2006. Promonte is part of ’Other mobile operations’ in the table on page 17.

	•		In the second quarter of 2006 the number of subscriptions increased by 39,000.

	•		Promonte’s estimated market share remained stable at 60% compared to the first quarter of 2006.

Asian Operations

DTAC — Thailand


		2nd quarter				1st half-year			Year
(NOK in millions)	2006		2005		2006		2005		2005

Subscription and traffic		1 760		—		3 612		—		1 074
Interconnection revenues		33		—		66		—		25
Mobile revenues company’s subscriptions		1 793		—		3 678		—		1 099

Other mobile revenues		85		—		216		—		74
Total mobile revenues		1 878		—		3 894		—		1 173

Non-mobile revenues		15		—		31		—		18
Total revenues 1)		1 893		—		3 925		—		1 191

1) Of which internal revenues		8		—		19		—		6

EBITDA		698		—		1 417		—		445
Depreciation and amortization 2)		335		—		672		—		220
Write-downs		—		—		—		—		—
Operating profit		363		—		745		—		225

2) Of which amortization of Telenor’s net excess values		50		—		101		—		35

EBITDA/Total revenues (%)		36.9		—		36.1		—		37.4
Operating profit/ Total revenues (%)		19.2		—		19.0		—		18.9
Capex		543		—		1 148		—		146
Investments in businesses		31		—		116		—		2 664
ARPU — monthly (NOK)		62		—		64		—		71
No. of subscriptions (100% in thousands)						10 622		—		8 677

At the end of the second quarter of 2006, Telenor’s economic stake in DTAC was 70.6%. Compared to the first quarter of 2006, the Norwegian Krone appreciated against the Thai Baht by approximately 3% in the second quarter of 2006. The preceding table shows figures for DTAC from the time of consolidation, 26 October 2005.

The following comments are made against the whole fourth quarter of 2005.

The following comments are made against the first quarter of 2006.

•

DTAC continued to grow its subscriptions in the second quarter of 2006 by 799,000 and is estimated to have increased its market share to around 31%.

	•		Despite a high increase in average usage per subscription, ARPU in local currency declined primarily due to lower average rates per minute. As a result, total revenues in local currency fell by 3%.

	•		Capital expenditure was high, but in line with the first quarter, and related to increased capacity to accommodate for higher usage as well as network expansion.

	•		The Thai regulator, NTC, has proposed new and more restrictive foreign ownership and management control rules, but states that the proposed draft regulations would need further public consultations.

	•		NTC issued the interconnection framework on 17 May and operators submitted their Reference Interconnect Offer (RIO) to the regulator on 1 June. There is now an interactive process with the regulator until 1 September before an eventual approval of the RIO. Once approved, the concessionaries’ RIO, bilateral negotiations will start with the seven other mobile and fixed operators in Thailand.

DiGi — Malaysia


	2nd quarter				1st half-year				Year
(NOK in millions)	2006		2005		2006		2005		2005

Subscription and traffic		1 331		924		2 610		1 716		3 949
Interconnection revenues		127		143		293		280		594
Mobile revenues company’s subscriptions		1 458		1 067		2 903		1 996		4 543

Other mobile revenues		20		15		41		29		65
Total mobile revenues		1 478		1 082		2 944		2 025		4 608

Non-mobile revenues		66		79		146		170		324
Total revenues 1)		1 544		1 161		3 090		2 195		4 932

1) Of which internal revenues		1		—		3		1		4

EBITDA		700		499		1 400		950		2 142
Depreciation and amortization 2)		227		253		479		510		1 038
Write-downs		7		—		7		1		5
Operating profit		466		246		914		439		1 099

2) Of which amortization of Telenor’s net excess values		4		17		8		34		51

EBITDA/Total revenues (%)		45.3		43.0		45.3		43.3		43.4
Operating profit/Total revenues (%)		30.2		21.2		29.6		20.0		22.3
Capex		199		178		425		286		1 170
ARPU — monthly (NOK)		93		99		95		96		98
No. of subscriptions (100% in thousands)						5 440		3 765		4 795

At the end of the second quarter of 2006, Telenor’s ownership interest in DiGi was 61.0%. Compared to the second quarter of 2005, the Norwegian Krone depreciated against the Malaysian Ringgit by approximately 2% in the second quarter of 2006.

	•		The number of subscriptions increased by 354,000 in the second quarter of 2006 and by 1.7 million from the second quarter of 2005.

	•		DiGi’s market share was estimated at 25%, in line with the previous quarter.

	•		ARPU measured in local currency decreased by 8% primarily due to lower incoming traffic coupled with a reduction in the interconnect pricing.

	•		Total revenues measured in local currency increased by 31% driven by growth in subscriptions.

	•		The EBITDA margin improved by 2.3 percentage points mainly due to economy of scale gained from increase in revenue. Measured in local currency, EBITDA increased by 38%.

	•		Depreciation and amortization decreased due to certain fixed assets becoming fully depreciated.

	•		The increase in capital expenditure was related to network investments accommodating increased usage, a higher subscription base and improved coverage.

GrameenPhone — Bangladesh


	2nd quarter				1st half-year				Year
(NOK in millions)	2006		2005		2006		2005		2005

Subscription and traffic		911		659		1 782		1 257		2 741
Interconnection revenues		78		39		151		73		188
Mobile revenues company’s subscriptions		989		698		1 933		1 330		2 929

Other mobile revenues		5		5		11		10		22
Total mobile revenues		994		703		1 944		1 340		2 951

Non-mobile revenues		3		2		8		5		19
Total revenues 1)		997		705		1 952		1 345		2 970

1) Of which internal revenues		1		—		1		—		1

EBITDA		488		334		1 147		663		1 559
Depreciation and amortization		148		89		307		166		439
Operating profit		340		245		840		497		1 120


EBITDA/Total revenues (%)		48.9		47.4		58.8		49.3		52.5
Operating profit/Total revenues (%)		34.1		34.8		43.0		37.0		37.7
Capex		516		357		905		853		2 596
ARPU — monthly (NOK)		45		69		48		75		68
No. of subscriptions (100% in thousands)						8 459		3 704		5 542

At the end of the second quarter of 2006, Telenor’s ownership interest in GrameenPhone was 62.0%. Compared to the second quarter of 2005, the Norwegian Krone appreciated against the Bangladeshi Taka by approximately 10% in the second quarter of 2006.

	•		GrameenPhone experienced a record high subscriptions growth of more than 2 million during the second quarter of 2006. Compared to the second quarter of 2005, total net additional subscriptions were 4.8 million.

	•		GrameenPhone’s estimated market share increased by 1 percentage point to 63% from the previous quarter.

	•		ARPU in local currency decreased by 29% primarily due to a reduction in average prices and dilution due to strong subscription growth.

	•		Measured in local currency, total revenues increased by 56% primarily due to the increased number of subscriptions. However, this was partially offset by a reduction in ARPU.

	•		The EBITDA margin increased mainly due to growth in revenues, partially offset by increased sales and acquisition costs as a result of strong subscription growth and strong competition. EBITDA measured in local currency increased by 64%.

	•		Depreciation and amortization increased as a result of higher capital expenditure in the intervening quarters.

	•		Increased capital expenditure was related to increased capacity to accommodate the growth in subscriptions.

	•		In the latest national budget of Bangladesh, tax on SIM cards was reduced by BDT 100 to BDT 800 with effect from 9 June 2006.

Telenor — Pakistan


	2nd quarter						1st half-year						Year
(NOK in millions)	2006			2005			2006			2005			2005

Total revenues		265			48			480			49			265
EBITDA		(117	)		(172	)		(194	)		(305	)		(572	)
Operating loss		(220	)		(232	)		(395	)		(379	)		(798	)

Capex		754			(91	)		1 105			1 048			1 843
No. of subscriptions (in thousands)								3 205			836			1 868

Compared to the second quarter of 2005, the Norwegian Krone appreciated against the Pakistani Rupi by approximately 3% in the second quarter of 2006. Pakistan is part of ‘Other mobile operations’ in the table on page 17.

	•		The number of subscriptions increased by 678,000 in the second quarter of 2006.

	•		Telenor Pakistan’s estimated market share increased to 10%.

	•		ARPU in local currency increased by 2% compared to the first quarter driven by increase in average usage, partially offset by reduction in prices.

	•		Compared to the first quarter of 2006, total revenues in local currency increased by 31% mainly due to subscription growth and increase in ARPU.

	•		The EBITDA loss in the second quarter of 2006 was affected by high costs related to sales and marketing activities.

	•		Capital expenditure increased substantially due to strong coverage and capacity expansion in the network. In the second quarter of 2006, capital expenditure also included NOK 57 million related to acquisition of a license to offer mobile services in the Azad Jammu and Kashmir region. The licence period is 15 years.

Fixed


	2nd quarter						1st half-year						Year
(NOK in millions)	2006			2005			2006			2005			2005

Revenues
Norway		3 983			4 367			8 161			8 530			16 867
Other operations		1 047			418			1 966			854			2 581
Eliminations		(31	)		(32	)		(61	)		(60	)		(135	)
Total revenues 1)		4 999			4 753			10 066			9 324			19 313

1) Of which internal revenues		471			522			989			983			2 173

EBITDA		1 567			1 504			3 126			2 912			5 885
Depreciation and amortization 2)		733			729			1 494			1 512			3 236
Write-downs 3)		15			2			15			(20	)		587
Operating profit		819			773			1 617			1 420			2 062
2) Of which amortization of Telenor’s net excess values		33			2			66			3			66
3) Of which write-downs of Telenor’s net excess values		—			—			—			(31	)		(24	)

EBITDA/Total revenues (%)		31.3			31.6			31.1			31.2			30.5
Operating profit/Total revenues (%)		16.4			16.3			16.1			15.2			10.7
Capex		643			556			1 260			937			2 776
Investments in businesses		75			1			536			44			5 816

Fixed — Norway


	2nd quarter				1st half-year					Year
(NOK in millions)	2006		2005		2006		2005			2005

Revenues
Telephony		1 627		1 867		3 330		3 738			7 232
xDSL/Internet		581		508		1 149		969			2 039
Data services		199		243		414		475			963
Other revenues		315		400		672		742			1 465
Total retail revenues		2 722		3 018		5 565		5 924			11 699

Wholesale revenues		1 261		1 349		2 596		2 606			5 168
Total revenues 1)		3 983		4 367		8 161		8 530			16 867

1) Of which internal revenues		510		522		1 055		985			2 190

EBITDA		1 417		1 532		2 807		2 970			5 701
Depreciation and amortization		561		658		1 163		1 363			2 707
Write-downs 2)		13		—		13		(22	)		(25	)
Operating profit		843		874		1 631		1 629			3 019

2) Of which write-downs of Telenor’s net excess values		—		—		—		(31	)		(36	)

EBITDA/Total revenues (%)		35.6		35.1		34.4		34.8			33.8
Operating profit/Total revenues (%)		21.2		20.0		20.0		19.1			17.9
Capex		371		503		850		840			2 169
Investments in businesses		—		1		1		44			44
No. of subscriptions (in thousands):
Telephony						1 545		1 705			1 622
– of which PSTN						1 017		1 139			1 089
– of which ISDN						454		562			509
– of which VoIP						74		4			24
xDSL						527		415			475

	•		The trend from previous quarters continued with an increase in the number of xDSL and VoIP subscriptions and a decrease in the number of PSTN/ISDN subscriptions.

	•		Telenor’s estimated market share for xDSL in the retail market was 58%, in line with previous quarters. Measured in traffic minutes, Telenor’s estimated market share was 65%, in line with the first quarter of 2006.

	•		Revenues decreased by 8.8%. Adjusted for the sale of contractor business in the second quarter of 2006, revenues decreased by 6.7%. Adjusted revenues in the first half year of 2006 decreased by 3.3% compared to the first half year of 2005.

	•		Revenues from telephony decreased due to a reduction in the number of subscriptions and lower traffic volumes. The number of subscriptions decreased primarily due to migration to VoIP telephony with other fixed network operators as well as a decrease in the total market for fixed telephony subscriptions. Decreased traffic volumes were due to the decrease in the number of telephony subscriptions and the number of voice minutes per subscription. The latter was mainly due to migration of voice traffic from fixed to mobile telephony.

	•		Revenues from xDSL/Internet increased due to growth in the number of xDSL subscriptions. This was partially offset by lower revenues per subscription and a reduction in revenues from Internet traffic and Internet subscriptions.

	•		The decrease in revenues from Data services was due to lower revenues per subscription partially offset by an increase in the number of subscriptions.

	•		Wholesale revenues decreased mainly as a result of a fall in contractor revenues due to outsourcing from 1 April 2006.

	•		The increase in EBITDA margin was due to a reduction in operating expenses as well as a shift in the revenue portfolio towards products with higher gross margin.

	•		The decrease in depreciation and amortization was primarily due to lower capital expenditure in recent years. This was partially offset by increased amortization for expenses associated with transactions that provide the rights to use assets, such as local loop unbundling.

	•		Capital expenditure decreased mainly due to reduced investments in broadband coverage and IS/IT.

	•		From 1 June 2006, the prices for unbundled access to the local loop were reduced in accordance with the instruction from the Ministry of Transport and Communications. The price for full access was reduced by NOK 30 to NOK 105 per month.

Fixed — Other operations


	2nd quarter						1st half-year						Year
(NOK in millions)	2006			2005			2006			2005			2005

Revenues
Fixed Sweden		866			374			1 593			766			2 096
Fixed Denmark		181			—			355			—			306
Other countries/eliminations		—			44			18			88			179
Total revenues 1)		1 047			418			1 966			854			2 581

1) Of which internal revenues		(9	)		32			(6	)		58			118

EBITDA
Fixed Sweden		100			(27	)		209			(56	)		158
Fixed Denmark		59			—			114			—			97
Other countries/eliminations		—			(1	)		10			1			(70	)
Total EBITDA		159			(28	)		333			(55	)		185

Depreciation and amortization 2)		172			70			331			148			528
Write-downs 3)		2			3			2			3			617
Operating loss		(15	)		(101	)		—			(206	)		(960	)

Of which:
Fixed Sweden		(17	)		(90	)		(21	)		(183	)		(866	)
Fixed Denmark		2			—			14			—			29
Other countries/eliminations		—			(11	)		7			(23	)		(123	)
2) Of which amortization of Telenor’s net excess values		33			2			66			3			66
3) Of which write-downs of Telenor’s net excess values		—			—			—			—			12

Capex
Fixed Sweden		230			48			313			88			485
Fixed Denmark		42			—			97			—			97
Other countries		—			5			—			9			25

Fixed Sweden consists of Telenor AB, Bredbandsbolaget and Glocalnet. Bredbandsbolaget and Glocalnet are consolidated with effect from 8 July 2005 and 1 March 2006, respectively. As of 30 June 2006 Telenor’s ownership interest in Glocalnet was 98.5%. Fixed Denmark consists of Cybercity, which is consolidated with effect from 5 July 2005. Compared to the second quarter of 2005, the Norwegian Krone appreciated against the Swedish Krone by approximately 3% and against the Danish Krone by approximately 2% in the second quarter of 2006. Operations in Other countries were sold with effect from 30 January 2006.

Fixed Sweden

	•		The number of xDSL and LAN subscriptions in Bredbandsbolaget increased by 15,000 to 400,000 in the second quarter of 2006, and the number of VoIP subscriptions increased by 15,000 to 134,000.

	•		The number of xDSL subscriptions in Glocalnet increased by 4,000 to 117,000 in the second quarter of 2006, and the number of telephony subscriptions decreased by 1,000 to 284,000.

	•		Revenues in Telenor AB decreased, primarily due to decreased revenues from wholesale telephony.

	•		In Telenor AB, EBITDA increased and turned positive as a result of increased gross margin for voice traffic and xDSL and a reduction in operating expenses. EBITDA was positively affected by the change in accounting treatment for transactions that provide the rights to use assets, which was implemented in the fourth quarter of 2005. Changes in estimated costs for termination of traffic in other networks in partially related to previous quarters affected EBITDA positively.

Fixed Denmark

•

In the first quarter of 2006, the number of xDSL subscriptions increased by 14,000 to 152,000, and the number of VoIP subscriptions increased by 4,000 to 41,000.

Broadcast


	2nd quarter						1st half-year						Year
(NOK in millions)	2006			2005			2006			2005			2005

Revenues
Distribution		1 299			1 147			2 550			2 286			4 615
Transmission		317			298			629			595			1 207
Other/Eliminations		(52	)		(44	)		(98	)		(90	)		(173	)
Total revenues 1)		1 564			1 401			3 081			2 791			5 649

1) Of which internal revenues		38			35			73			63			131

EBITDA
Distribution		251			242			485			455			818
Transmission		191			175			366			349			713
Other/Eliminations		(5	)		(6	)		(6	)		(13	)		(15	)
Total EBITDA		437			411			845			791			1 516

Depreciation and amortization 2)		153			133			307			277			554
Write-downs 3)		—			4			3			4			(53	)
Operating profit		284			274			535			510			1 015

Of which:
Distribution		189			179			361			322			494
Transmission		110			107			199			213			564
Other/Eliminations		(15	)		(12	)		(25	)		(25	)		(43	)
2) Of which amortization of Telenor’s net excess values		10			14			21			28			56
3) Of which write-downs of Telenor’s net excess values		—			—			—			—			75

EBITDA/Total revenues (%)		27.9			29.3			27.4			28.3			26.8
Operating profit/Total revenues (%)		18.2			19.6			17.4			18.3			18.0
Capex		106			96			198			143			392
Investments in businesses		98			—			98			—			42
No. of subscribers (in thousands):
DTH pay TV								921			853			906
Cable TV								687			619			681
Households in satellite master antenna TV networks								1 119			1 205			1 177
Cable TV Internet access								81			50			73

	•		The number of DTH pay TV subscribers increased by 3,000 in the second quarter of 2006, the number of Cable TV (CATV) subscribers increased by 3,000, and the number of Cable TV internet access subscribers increased by 3,000.

	•		Total revenues increased primarily due to higher number of subscribers in Distribution and higher revenues from satellite and terrestrial distribution in Transmission.

	•		The increase in EBITDA was primarily due to higher revenues, partially offset by increased content cost and higher costs related to sales and marketing activities.

	•		In the second quarter, Norsk Televisjon AS (NTV), which is jointly owned by Telenor, the TV2 Group and NRK, was awarded the licence for operation and maintenance of the digital terrestrial network (DTT) in Norway.

	•		On 14 July 2006, NTV announced that it had chosen Telenor as a full-range supplier of DTT network for television in Norway. The agreement involves development and operation of the transmission network for 15 years.

	•		Telenor has acquired 45% of the shares in the Norwegian TV channel TV2 Zebra. The remaining shares are owned by the TV2 Group.

Other Units


		2nd quarter						1st half-year					Year
(NOK in millions)	2006			2005			2006			2005			2005

Revenues
EDB Business Partner		1 449			1 285			2 784			2 516			4 991
Satellite Services		596			592			1 203			1 181			2 428
Venture		146			125			279			241			490
Corporate functions and Group activities		568			603			1 090			1 185			2 266
Other		1			9			1			27			25
Eliminations		(45	)		(72	)		(90	)		(141	)		(233	)
Total revenues 1)		2 715			2 542			5 267			5 009			9 967

1) Of which internal revenues		657			803			1 295			1 591			2 907

EBITDA
EDB Business Partner		141			187			332			364			785
Satellite Services		88			90			165			158			393
Venture		(4	)		(1	)		(21	)		5			(2	)
Corporate functions and Group activities		(131	)		(34	)		(235	)		(40	)		(77	)
Other/eliminations		(10	)		(10	)		(21	)		(13	)		(8	)
Total EBITDA		84			232			220			474			1 091

Depreciation and amortization 2)		277			262			520			512			1 033
Write-downs 3)		—			—			—			—			10
Operating profit (loss)		(193	)		(30	)		(300	)		(38	)		48

Of which
EDB Business Partner		37			80			136			161			377
Satellite Services		25			26			39			30			125
Venture		(13	)		(6	)		(38	)		(4	)		(23	)
Corporate functions and Group activities		(229	)		(120	)		(411	)		(212	)		(420	)
Other/eliminations		(13	)		(10	)		(26	)		(13	)		(11	)
2) Of which amortization of Telenor’s net excess values		3			2			6			4			8
3) Of which write-downs of Telenor’s net excess values		—			—			—			—			5

Capex		203			193			359			318			832
Investments in businesses		616			263			1 274			270			332

EDB Business Partner

	•		Revenues increased mainly due to acquisition of operations in the fourth quarter of 2005 and the first half year of 2006. In the second quarter of 2006, EDB acquired Guide Konsult for a total consideration of NOK 566 million.

	•		EBITDA decreased mainly due to lower sales of maintenance contracts partially offset by EBITDA from acquired operations.

Satellite Services

•

Increased revenues were primarily due to growth within the VSAT business, partially offset by decreased revenues in the Inmarsat segment due to lower volumes and prices. Operating profit was in line with the second quarter of 2005.

Venture

•

The increase in revenues was primarily due to acquisition of new business within Opplysningen in the second half of 2005. Operating profit decreased primarily due to the new business.

Corporate Functions and Group Activities

•

The increased EBITDA loss is largely due to less gain on sales and lower intra-group revenues.

Other Profit and Loss Items for the Group

Depreciation, amortization and write-downs


		2nd quarter				1st half-year				Year
(NOK in millions)	2006		2005		2006		2005			2005

Depreciation 1)		2 189		2 006		4 454		3 955			8 083
Amortization 2)		1 354		745		2 635		1 500			3 461
Total depreciation and amortization		3 543		2 751		7 089		5 455			11 544

Write-downs 1)		74		20		77		28			488
Write-downs of goodwill		—		—		—		(31	)		46
Write-downs 2)		14		—		14		—			53
Total write-downs		88		20		91		(3	)		587

Total depreciation, amortization and write-downs		3 631		2 771		7 180		5 452			12 131

1)		Tangible assets (property, plant and equipment)

2)		Other intangible assets and prepaid lease payments See page 19 for more specifications.

	•		The increase in total depreciation and amortization was primarily due to acquired businesses and increased capital expenditure, partially offset by fully depreciated assets.

	•		In general, depreciation and amortization is also affected by changes in exchange rates and investment levels in the previous quarters.

Associated companies


		2nd quarter						1st half-year					Year
(NOK in millions)	2006			2005			2006			2005			2005

Telenor’s share of 1)
Profit after taxes		370			505			686			760			1 452
Amortization of Telenor’s net excess values		(3	)		(14	)		(7	)		(30	)		(46	)
Write-downs of Telenor’s net excess values		(11	)		—			(11	)		—			(172	)
Gains (losses) on disposal of ownership interests		6			3			6			3			(1	)
Net result from associated companies		362			494			674			733			1 233

For certain associated companies, financial statements as of the Group’s balance sheet date are not available. In such instances, the most recent financial statements (as of a date not more than three months prior to the Group’s balance sheet date) are used, and estimates for the last period are made based on publicly available information. Actual figures may

deviate from the preliminary figures. The consolidated profit and loss statement contains only the line ‘Net result from associated companies’. The preceding table includes Telenor’s share of profit after taxes from DTAC and UCOM until 1 November 2005. Thereafter DTAC is consolidated, while UCOM is treated as a discontinued operation. Glocalnet is included until 28 February 2006. Thereafter Glocalnet is consolidated as a subsidiary.

	•		At the end of the second quarter of 2006, Telenor’s ownership interest in VimpelCom in Russia was 29.9%. The value of Telenor’s share of the company, based on the quoted share price as of 30 June 2006, was NOK 17.5 billion. According to telecom analysts, VimpelCom had approximately 51 million mobile subscriptions at the end of the second quarter of 2006.

	•		On 6 July 2006 VimpelCom announced that it had received the final decision of the review of VimpelCom’s 2003–2004 Russian tax filings. VimpelCom informed that of the total claim of RUB 1,809 million in taxes and fines, the total net amount to be paid is RUB 652 million. VimpelCom states that it does not agree with the claims and plans to subsequently appeal its position in court. Telenor cannot make any reliable estimate of the net effect of the tax claim and has not made any adjustments to the results from associated companies in Telenor’s consolidated financial statements.

	•		On 1 June 2006 VimpelCom withdrew its proposal to both Telenor and Altimo to acquire 100% of Kyivstar for USD 5 billion. Telenor has stated that a market-based separation agreement between Telenor and Altimo and the associated Federal Anti-Monopoly Service (FAS) approvals are necessary conditions to the sale of Kyivstar to VimpelCom.

Financial items


		2nd quarter						1st half-year					Year
(NOK in millions)	2006			2005			2006			2005			2005

Financial income		114			138			231			215			447
Financial expenses		(608	)		(373	)		(1 195	)		(717	)		(1 639	)
Net foreign currency gains (losses)		(16	)		177			(129	)		152			84
Change in fair value of financial instruments		(199	)		(37	)		(225	)		(11	)		243
Net gains (losses) and write-downs		(15	)		67			1 800			484			518
Net financial items		(724	)		(28	)		482			123			(347	)


Gross interest expenses		(609	)		(383	)		(1 185	)		(737	)		(1 594	)
Net interest expenses		(519	)		(314	)		(1 019	)		(605	)		(1 309	)

	•		Increased financial expenses were due to increased long term interest-bearing liabilities following the acquisition of businesses.

	•		Change in fair value of financial instruments was primarily related to interest rate derivatives used for economic hedge of interest-bearing liabilities that do not fulfil the requirements for hedge accounting.

Taxes

•

The nominal Norwegian corporate income tax rate is 28%. The effective tax rate for the Telenor Group for the fiscal year 2006 is estimated at approximately 27% of profit before taxes and minority interests. The gain on sale of shares in Inmarsat in the first quarter of NOK 1.8 billion is not taxable. Adjusted for this gain, the effective tax rate for 2006 is estimated at approximately 30%. The effective tax rate is also affected by taxes related to companies outside Norway and non-deductible expenses.

•

The actual effective tax rate for 2006 may deviate from the estimated rate.

Balance sheet

•

Net interest-bearing liabilities increased by NOK 3.3 billion in the quarter to NOK 38.2 billion as of 30 June 2006. The Annual General Meeting (AGM) of Telenor at 23 May 2006 declared dividends of NOK 3.4 billion, of which NOK 3.2 billion was paid in the second quarter of 2006. In addition, shareholders equity was reduced and short-term interest-bearing liabilities increased by NOK 0.8 billion as a result of the AGM’s approval of the redemption of shares owned by the Kingdom of Norway. The AGM decided further to cancel 12.1 million of Telenor’s own shares. After the cancellation of these shares and the redemption of shares owned by the Kingdom of Norway, the total number of outstanding shares will be 1,680,274,570. The AGM authorized the Board to acquire 165 million of Telenor’s own shares. As of 30 June 2006, Telenor had not made any purchase of its own shares according to the new authorization.

•

Translation differences reduced equity in the second quarter of 2006 by NOK 1.3 billion, due to the appreciation of the Norwegian Krone compared to most of the functional currencies of Telenor’s foreign subsidiaries and associated companies as of 30 June 2006 compared to 31 March 2006, of which Pannon contributed the largest amount.

Outlook for 2006

We are maintaining our outlook from the first quarter.

	•		The strong growth in mobile subscriptions during 2005 gives Telenor a solid foundation for further growth in revenues. We expect a growth in reported revenues of around 30%.

	•		We expect a continued high growth in EBITDA, in particular driven by the international mobile operations. Telenor will continue previously introduced initiatives and identify new means of improving cost efficiency. We expect the EBITDA margin before other income and expenses for 2006 to be above 34%.

	•		We expect high capital expenditure to continue, and capital expenditure as a proportion of revenues is expected to be above 20%. Capital expenditure is expected to continue to be driven by high subscription growth within Telenor’s mobile operations in emerging markets.

	•		A growing share of Telenor’s revenues and profits is derived from operations outside Norway. Currency fluctuations may to an increasing extent influence the reported figures in Norwegian Krone. Political risk, including regulatory conditions, may also influence the profits. We expect seasonal variations between the quarters.

The accounts submitted with the report have not been audited. This report contains statements regarding the future in connection with Telenor’s growth initiatives, profit figures, outlook, strategies and objectives. In particular, the section “Outlook for 2006” contains forward-looking statements regarding the group’s expectations. All statements regarding the future are subject to inherent risks and uncertainties, and many factors can lead to actual profits and developments deviating substantially from what has been expressed or implied in such statements. These factors include the risk factors relating to Telenor’s activities described in Telenor’s 2005 Annual Report on Form 20-F filed with the Securities and Exchange Commission in the USA under the headings “Cautionary Statement Regarding Forward-Looking Statements” and “Risk Factors” (available at www.telenor.com/ir/).

Oslo, 20 July 2006
The Board of Directors of Telenor ASA

Definitions

–		Underlying growth is defined as revenue growth adjusted for the effects of acquisition and disposal of operations and currency effects.

–		For reconciliation of EBITDA before other income and expenses and adjusted operating profit, see the table “Reconciliations” on page 19.

–		Capital expenditure (Capex) is investments in tangible and intangible assets.

–		Investments in businesses comprise acquisitions of shares and participations, including acquisitions of subsidiaries and businesses not organised as separate companies.

–		Operating cash flow is defined as EBITDA – Capex.

Mobile Operations

Revenues

Subscription and traffic

– consist of subscription and connection fees, revenues from voice outgoing airtime, non-voice traffic, outbound roaming and other mobile service revenues. Subscription and traffic includes only revenues from the company’s own subscriptions.

Interconnection revenues

– consist of revenues from incoming traffic. Revenues from incoming traffic related to service provider subscriptions are not included.

Other mobile revenues

– consist of inbound roaming, national roaming and revenues related to service providers and MVNOs (Mobile Virtual Network Operators).

Non-mobile revenues

– consist of revenues from customer equipment and businesses that are not directly related to mobile operations.

Key Figures

Subscriptions

Contract subscriptions are counted until the subscription is terminated.

Prepaid subscriptions are counted as active if there has been outgoing or incoming traffic or if the SIM-card has been reloaded during the last three months. Service provider and MVNO subscriptions are not included. Data only SIM-cards are included, but SIM-cards used for telemetric applications are excluded. Telemetric is defined as machine-to-machine SIM-cards (M2M), for example, vending machines and meter readings.

Average traffic minutes per subscription per month (AMPU)
Traffic minutes per subscription per month are calculated based on total outgoing and incoming rated minutes from the company’s own subscriptions. This includes zero rated minutes and outgoing minutes from own subscriptions while roaming. Outgoing and incoming minutes related to inbound roaming, national roaming, service providers and MVNOs are not included.

Average revenue per subscription per month (ARPU)
ARPU is calculated based on mobile revenues from the company’s own subscriptions, divided by the average number of subscriptions for the relevant period.

”Mobile revenues company’s subscriptions”consist of “Subscription and traffic” and “Interconnection revenues” and do not include revenues from inbound roaming, national roaming, service providers, MVNOs, sale of customer equipment and incoming traffic related to service provider subscriptions.

Fixed – Norway

Revenues

Telephony

– consist of subscription and connection fee, traffic (fixed to fixed, fixed to mobile, to other countries, value added services, other traffic) for PSTN/ISDN and Voice over Internet Protocol (VoIP).

xDSL/Internet

– consist of subscription fee for xDSL and Internet and traffic charges for Internet traffic (810/815).

Data services

– consist of Nordicom, Frame relay and IP-VPN.

Other revenue

– consist of leased lines, managed services and other retail products.

Wholesale revenues

– consist of sale to service providers of telephony (PSTN/ISDN) and xDSL, national and international interconnect, transit traffic, leased lines, other wholesale products and contractor services.

Broadcast

Revenues

Distribution

– consist of revenues from Pay TV subscribers and basic tier households on DTH (direct to home), cable TV subscribers, households in SMATV networks and DTT (Digital terrestrial TV) Pay TV subscribers.

Transmission

– consist of revenues from satellite services from satellite position 1-degree west and revenue from terrestrial radio and TV transmission In Norway.

Other

– consist of revenues from conditional access systems and revenue not directly related to Distribution and Transmission services.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


		Telenor ASA

		By: /s/ Trond Westlie

		Name: Trond Westlie
		(sign.)
		Title: CFO

Date: 21^st July, 2006