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: 22^nd July, 2005, for Second quarter, 2005

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

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 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


SIGNATURES

TELENOR ASA SECOND QUARTER 2005 RESULTS

22.07.05 08:05 Market=OB TEL

The second quarter of 2005 showed a growth in revenues for the Telenor Group of 8.6% to NOK 16.5 billion compared to the second quarter of 2004. Profit before taxes and minority interests was NOK 3.3 billion.

Telenor’s net income was NOK 2,041 million. EBITDA before other income and expenses was NOK 5,564 million.

Capital expenditure was NOK 2,923 million. The net interest- bearing liabilities was NOK 17,814 million

Telenor’s net income was NOK 2,041 million. Net income per share for the second quarter of 2005 was NOK 1.19. EBITDA before other income and expenses was NOK 5,564 million. The reduced margin was primarily related to the launch in Pakistan, Fixed, strong growth and increased competition in the mobile operations.

In the second quarter of 2005 the number of subscriptions in the consolidated mobile operations increased by 3.4 million to 24.8 million. The growth in mobile subscriptions constitutes a three-fold increase compared to the second quarter of 2004. ARPU increased in all mobile operations, with the exception of GrameenPhone, compared to the first quarter of 2005. All mobile operations retained or increased their market shares during the quarter.

Capital expenditure was NOK 2,923 million. Adjusted for the purchase of a license for mobile telephony in Pakistan in the second quarter of 2004, capital expenditure increased due to the strong customer growth in the international mobile operations.

Telenor acquired Bredbandsbolaget in Sweden and Cybercity in Denmark for SEK 6.0 billion and DKK 1.4 billion respectively, including acquired interest-bearing liabilities in early July. The companies will be consolidated with effect from July.

The satellite company Inmarsat was listed on the London Stock Exchange on 22 June 2005. Telenor’s ownership interest after the stock-exchange listing is 9.4% and as at 30 June the market value of Telenor’s shares was NOK 1.7 billion.

In the second quarter of 2005, in accordance with the authority granted by the General Meeting of Telenor on 20 May 2005, Telenor purchased 6,414,000 of its own shares in the market for NOK 329 million.

Outlook for 2005:

Telenor maintains its outlook for 2005 as presented in Telenor’s report for the first quarter of 2005.

A continued high growth in revenues and EBITDA is expected for the total mobile operations in 2005.

In Fixed Norway, revenues and EBITDA is expected to decrease. The strong growth in the number of ADSL subscriptions is expected to continue. The related expected increased revenue from ADSL, in addition to expected increased revenues from wholesale, is not expected to fully offset decreased revenues from PSTN/ISDN.

Cost reductions as assumed, in particular within Fixed, will be implemented.

In Broadcast and other units, we expect EBITDA to improve

in 2005 compared to 2004.

High capital expenditure is expected for 2005, in which capital expenditure in proportion to revenues is expected to be in line with or slightly exceed 2004 levels.

A continuously increasing share of Telenor’s revenues and results come from operations outside Norway. Currency fluctuations will to an increasing extent influence the reported figures in Norwegian Krone. Political risk, including regulatory conditions, might also influence the results.

Telenor expects that profits, adjusted for special items, overall will grow in 2005 compared to 2004.

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:
	Name:	Torstein Moland
		(sign.)
	Title: CFO

Date: 22^nd July, 2005

SECOND QUARTER 2005

Telenor Group second quarter 2005

KEY POINTS IN THE QUARTER

•		Revenue growth of 9%

•		Record high mobile subscription growth

•		Increased or stable market shares in all mobile operations

•		Kyivstar ARPU improved from last quarter

HOVEDTALL


	2nd quarter				1st half-year				Year
(NOK in millions)	2005		2004		2005		2004		2004

Revenues		16,542		15,226		31,812		29,471		60,701
Revenues – growth (%)		8.6		15.8		7.9		14.5		14.8
EBITDA before other income and expenses 1)		5,564		5,529		10,649		10,597		21,367
EBITDA before other income and expenses/Revenues (%)		33.6		36.3		33.5		36.0		35.2
EBITDA		5,630		5,698		10,736		10,746		20,957
EBITDA/Revenues (%)		34.0		37.4		33.7		36.5		34.5
Adjusted operating profit 1)		2,813		2,822		5,194		5,382		10,730
Adjusted operating profit/Revenues (%)		17.0		18.5		16.3		18.3		17.7
Operating profit		2,859		2,990		5,284		5,527		6,789
Operating profit/Revenues (%)		17.3		19.6		16.6		18.8		11.2
Associated companies		494		290		733		515		986
Profit before taxes and minority interests		3,325		2,983		6,140		8,016		9,296
Net income		2,041		1,709		3,751		4,840		5,677
Net income per share in NOK (basic), excluding treasury shares		1.19		0.97		2.17		2.74		3.25
Net income per share in NOK (diluted), excluding treasury shares		1.19		0.97		2.17		2.74		3.24

Net interest-bearing liabilities						17,814		21,973		19,195


	2nd quarter				1st half-year				Year
(NOK in millions)	2005		2004		2005		2004		2004

Investments:
Capex 2)		2,923		4,012		6,283		5,483		12,745
Investments in businesses 3)		264		294		314		4,043		5,809

1)		For reconciliation of EBITDA before other income and expenses and adjusted operating profit, see the table “Reconciliations” on page 17.

2)		Capex is investments in tangible and intangible assets.

3)		Consists of acquisition of shares and participations, including acquisition of subsidiaries and businesses not organized as separate companies.

*)		Compared to the second quarter of 2004, if not otherwise stated.

•		Telenor’s net income was NOK 2,041 million. Net income per share for the second quarter of 2005 was NOK 1.19.

•		EBITDA before other income and expenses was NOK 5,564 million. The reduced margin was primarily related to the launch in Pakistan, Fixed, strong growth and increased competition in the mobile operations.

•		In the second quarter of 2005 the number of subscriptions in the consolidated mobile operations increased by 3.4 million to 24.8 million. The growth in mobile subscriptions constitutes a three-fold increase compared to the second quarter of 2004. ARPU increased in all mobile operations, with the exception of GrameenPhone, compared to the first quarter of 2005. All mobile operations retained or increased their market shares during the quarter.

•		Capital expenditure was NOK 2,923 million. Adjusted for the purchase of a license for mobile telephony in Pakistan in the second quarter of 2004, capital expenditure increased due to the strong customer growth in the international mobile operations.

•		Telenor acquired Bredbandsbolaget in Sweden and Cybercity in Denmark for SEK 6.0 billion and DKK 1.4 billion respectively, including acquired interest-bearing liabilities in early July. The companies will be consolidated with effect from July.

•		The satellite company Inmarsat was listed on the London Stock Exchange on 22 June 2005. Telenor’s ownership interest after the stock-exchange listing is 9.4% and as at 30 June the market value of Telenor’s shares was NOK 1.7 billion.

•		In the second quarter of 2005, in accordance with the authority granted by the General Meeting of Telenor on 20 May 2005, Telenor purchased 6,414,000 of its own shares in the market for NOK 329 million.

KEY FIGURES OPERATIONS
Driftsinntekter


	2nd quarter									1st half-year									Year
(NOK in millions)	2005			2004			Growth			2005			2004			Growth			2004			Growth

Telenor Mobil – Norway		3,049			2,954			3.2	%		5,887			5,758			2.2	%		11,730			7.5	%
Sonofon – Denmark		1,308			1,225			6.8	%		2,501			1,895			32.0	%		4,404		nm
Kyivstar – Ukraine		1,643			981			67.5	%		2,806			1,806			55.4	%		4,219			60.2	%
Pannon GSM – Hungary		1,498			1,444			3.7	%		2,913			2,845			2.4	%		5,907			10.0	%
DiGi.Com – Malaysia		1,161			958			21.2	%		2,195			1,894			15.9	%		3,946			24.2	%
GrameenPhone – Bangladesh		705			529			33.3	%		1,345			1,018			32.1	%		2,186			42.3	%
Other mobile operations		236			55			329.1	%		404			101			300.0	%		423			233.1	%
Fixed		4,753			4,877			(2.5	%)		9,324			9,800			(4.9	%)		19,256			(6.1	%)
Broadcast		1,401			1,335			4.9	%		2,791			2,641			5.7	%		5,346			11.4	%
Other operations		2,542			2,413			5.3	%		5,009			4,783			4.7	%		9,540			(7.2	%)
Eliminations		(1,754	)		(1,545	)	nm				(3,363	)		(3,070	)	nm				(6,256	)	nm
Total revenues		16,542			15,226			8.6	%		31,812			29,471			7.9	%		60,701			14,8	%

EBITDA


	2nd quarter												1st half-year												Year
(NOK in millions)	2005			Margin 1)			2004			Margin 1)			2005			Margin 1)			2004			Margin 1)			2004			Margin 1)

Telenor Mobil – Norway		1,066			35.0	%		1,081			36.6	%		2,067			35.1	%		2,083			36.2	%		4,305			36.7	%
Sonofon – Denmark		308			23.5	%		238			19.4	%		561			22.4	%		405			21.4	%		681			15.5	%
Kyivstar – Ukraine		911			55.4	%		592			60.3	%		1,543			55.0	%		1,097			60.7	%		2,581			61.2	%
Pannon GSM – Hungary		484			32.3	%		556			38.5	%		1,001			34.4	%		1,112			39.1	%		2,093			35.4	%
DiGi.Com – Malaysia		499			43.0	%		410			42.8	%		950			43.3	%		836			44.1	%		1,732			43.9	%
GrameenPhone – Bangladesh		334			47.4	%		309			58.4	%		663			49.3	%		592			58.2	%		1,313			60.1	%
Other mobile operations		(130	)	nm				(49	)	nm				(218	)	nm				(74	)	nm				(712	)	nm
Fixed		1,504			31.6	%		1,631			33.4	%		2,912			31.2	%		3,263			33.3	%		6,338			32.9	%
Broadcast		411			29.3	%		392			29.4	%		791			28.3	%		741			28.1	%		1,498			28.0	%
Other operations		232			9.1	%		509			21.1	%		474			9.5	%		690			14.4	%		1,114			11.7	%
Eliminations		11		nm				29		nm				(8	)	nm				1		nm				14		nm
Total EBITDA		5,630			34.0	%		5,698			37.4	%		10,736			33.7	%		10,746			36.5	%		20,957			34.5	%

EBITDA as a percentage of revenues.

Operating profit


	2nd quarter												1st half-year												Year
(NOK in millions)	2005			Margin 1)			2004			Margin 1)			2005			Margin 1)			2004			Margin 1)			2004			Margin 1)

Telenor Mobil – Norway		824			27.0	%		805			27.3	%		1,614			27.4	%		1,568			27.2	%		3,228			27.5	%
Sonofon – Denmark		(20	)	nm				(117	)	nm				(120	)	nm				(139	)	nm				(3,799	)	nm
Kyivstar – Ukraine		580			35.3	%		464			47.3	%		981			35.0	%		844			46.7	%		2,026			48.0	%
Pannon GSM – Hungary		206			13.8	%		230			15.9	%		407			14.0	%		455			16.0	%		777			13.2	%
DiGi.Com – Malaysia		246			21.2	%		184			19.2	%		439			20.0	%		381			20.1	%		831			21.1	%
GrameenPhone – Bangladesh		245			34.8	%		258			48.8	%		497			37.0	%		507			49.8	%		1,095			50.1	%
Other mobile operations		(232	)	nm				(56	)	nm				(377	)	nm				(89	)	nm				(903	)	nm
Fixed		773			16.3	%		734			15.1	%		1,420			15.2	%		1,412			14.4	%		2,725			14.2	%
Broadcast		274			19.6	%		218			16.3	%		510			18.3	%		380			14.4	%		750			14.0	%
Other operations		(30	)	nm				248			10.3	%		(38	)	nm				194			4.1	%		96			1.0	%
Eliminations		(7	)	nm				22		nm				(49	)	nm				14		nm				(37	)	nm
Total operating profit		2,859			17.3	%		2,990			19.6	%		5,284			16.6	%		5,527			18.8	%		6,789			11.2	%

Operating profit as a percentage of revenues.

As of 1 January 2005, Telenor’s unaudited interim consolidated financial statements are prepared according to International Financial Reporting Standards (IFRS) according to IAS 34 “Interim Financial Reporting”. As a consequence of the transition to IFRS, certain of Telenor’s accounting principles have been changed compared to Telenor’s financial statements for the year and quarters of 2004, which were prepared according to Norwegian Generally Accepted Accounting Principles (N GAAP). The figures for the comparable periods of 2004 have been restated to comply with IFRS. The main changes are discussed in the first quarter report for 2005. Accounting figures and key figures for periods prior to 2004 have not been restated to comply with IFRS. Reference is made to Telenor’s first quarter report for 2005 for discussions related to the first quarter of 2005.

TELENOR’S OPERATIONS

The discussions below are in respect of Telenor’s development in the second quarter of 2005 compared to the second quarter of 2004, if not otherwise stated.

MOBILE OPERATIONS

TELENOR MOBIL – NORWAY


	2nd quarter				1st half-year				Year
(NOK in millions)	2005		2004		2005		2004		2004

Subscription and traffic		2,003		1,968		3,930		3,814		7,879
Interconnection revenues		452		402		859		780		1,613
Mobile revenues company’s subscriptions		2,455		2,370		4,789		4,594		9,492
Other mobile revenues		453		405		815		709		1,513
Total mobile revenues		2,908		2,775		5,604		5,303		11,005
Non-mobile revenues		141		179		283		455		725
Total revenues 1)		3,049		2,954		5,887		5,758		11,730

1) Of which internal revenues		313		315		591		626		1,226

EBITDA		1,066		1,081		2,067		2,083		4,305
Depreciation and amortization 1)		230		275		443		514		1,062
Write-downs		12		1		10		1		15
Operating profit		824		805		1,614		1,568		3,228

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

EBITDA/Total revenues (%)		35.0		36.6		35.1		36.2		36.7
Operating profit/ Total revenues (%)		27.0		27.3		27.4		27.2		27.5
Capex		343		255		537		469		973
ARPU – monthly (NOK)		308		332		303		324		323
No. of subscriptions (in thousands)						2,687		2,451		2,645

•		The number of subscriptions increased by 52,000 during the second quarter of 2005.

•		Telenor Mobil’s estimated market share at the end of the second quarter of 2005 was 56%, in line with the end of the first quarter of 2005.

•		ARPU decreased primarily due to reduced prices, partially offset by more working days in the second quarter of 2005.

•		Mobile revenues increased by 4.8%.

•		Revenues from subscriptions and traffic were positively affected by a higher number of subscriptions, partially offset by reduced prices on subscription, voice and SMS.

•		Interconnection revenues increased due to the increased number of subscriptions.

•		Other mobile revenues increased due to increased revenues from sale of capacity on a wholesale basis.

•		Non-mobile revenues decreased due to reduced sale of customer equipment.

•		The decrease in EBITDA margin was primarily due to increased costs associated with sales and marketing activities.

•		The decrease in depreciation and amortization was partially due to the increased estimated useful life for certain assets from January 2005.

•		The increase in capital expenditure was primarily due to investments in the UMTS network and upgrading the GSM network to EDGE functionality.

SONOFON – DENMARK


	2nd quarter						1st half-year						Year
(NOK in millions)	2005			2004			2005			2004			2004

Subscription and traffic		595			496			1166			770			1,813
Interconnection revenues		328			280			628			420			986
Mobile revenues company’s subscriptions		923			776			1,794			1,190			2,799
Other mobile revenues		158			161			301			258			571
Total mobile revenues		1,081			937			2,095			1,448			3,370
Non-mobile revenues		227			288			406			447			1,034
Total revenues 1)		1,308			1,225			2,501			1,895			4,404

1) Of which internal revenues		35			8			55			12			53

EBITDA		308			238			561			405			681
Depreciation and amortization 1)		328			355			681			544			1,190
Write-downs 2)		—			—			—			—			3,290
Operating loss		(20	)		(117	)		(120	)		(139	)		(3,799	)

1) Of which amortization of Telenor’s net excess values by		134			160			291			235			551
2) Of which write-downs of Telenor’s net excess values by		—			—			—			—			3,075

EBITDA/Total revenues (%)		23.5			19.4			22.4			21.4			15.5
Capex		140			144			168			210			388
Investments in businesses		—			145			—			3,786			3,786
ARPU – monthly (NOK)		253			233			235			242			227
No. of subscriptions (in thousands)								1,250			1,203			1,275

The classification of revenues for the first quarter of 2005 has been adjusted. ARPU has been adjusted accordingly.

•		The number of subscriptions increased by 18,000 during the second quarter of 2005, primarily due to increased gross sales and reduced churn for prepaid subscriptions.

•		Sonofon’s estimated market share was 26% at the end of the second quarter of 2005, in line with the end of the first quarter of 2005.

•		ARPU measured in local currency increased by 12%, primarily due to increase in average minutes per subscription (AMPU).

•		Revenues measured in local currency increased by approximately 11%, primarily due to the increase in ARPU. The acquisition of CBB in the second quarter of 2004 contributed to a decrease in Other mobile revenues and an increase in Mobile revenues company’s subscriptions. The decrease in Non-mobile revenues was due to decreased revenues from the fixed line operation and from sales of customer equipment.

•		Increased EBITDA was due to increased revenues. The increase in EBITDA margin was due to efficiency improvements and reduced costs related to sales and marketing activities. EBITDA measured in local currency increased by 35%. The second quarter of 2004 was positively affected by capitalized costs that were expensed in the fourth quarter of 2004.

•		Capital expenditure was in line with the second quarter of 2004 and was related to further improvement of the GSM network and investment in transportation capacity.

KYIVSTAR – UKRAINE


	2nd quarter				1st half-year				Year
(NOK in millions)	2005		2004		2005		2004		2004

Subscription and traffic		1,158		703		1,965		1,313		2,961
Interconnection revenues		428		236		741		422		1,068
Mobile revenues company’s subscriptions		1,586		939		2,706		1,735		4,029
Other mobile revenues		30		27		53		43		122
Total mobile revenues		1,616		966		2,759		1,778		4,151
Non-mobile revenues		27		15		47		28		68
Total revenues 1)		1,643		981		2,806		1,806		4,219

1) Of which internal revenues		2		—		3		—		2

EBITDA		911		592		1,543		1,097		2,581
Depreciation and amortization 1)		331		128		562		253		555
Write-downs		—		—		—		—		—
Operating profit		580		464		981		844		2,026

1) Of which amortization of Telenor’s net excess values by		23		24		45		48		93

EBITDA/Total revenues (%)		55.4		60.3		55.0		60.7		61.2
Operating profit/Total revenues (%)		35.3		47.3		35.0		46.7		48.0
Capex		919		566		1,654		897		2,608
Investments in businesses		—		35		—		35		35
ARPU – monthly (NOK)		62		93		58		89		85
No. of subscriptions (100% in thousands)						9,335		3,610		6,252

Telenor’s ownership interest at the end of the second quarter of 2005 was 56.5%. The Norwegian Krone appreciated against the Ukrainian Hryvnia by approximately 3% in the second quarter of 2005 compared to the second quarter of 2004.

•

The subscription growth of previous quarters continued in the second quarter of 2005 with an increase of 1.7 million subscriptions. Compared to the second quarter of 2004, the customer base more than doubled with an increase of in total 5.7 million subscriptions.

•

Kyivstar sustained its estimated market share of 48% from the previous quarter.

•

Compared to the first quarter of 2005, ARPU measured in local currency increased by 11% due to an increase in average prices. The decrease in ARPU compared to the second quarter of 2004 was related to lower average prices. Despite the fact that new customers on average have a lower usage (AMPU) than existing customers AMPU increased by 22%.

•

Measured in local currency revenues increased by 73%, primarily due to the increased number of subscriptions, partially offset by price reductions.

•

The decrease in EBITDA margin was primarily due to a decrease in prices and a significant increase in costs associated with sales and marketing activities as a result of the strong customer growth. EBITDA measured in local currency increased by 59%.

•

Depreciation and amortization increased as a result of increased capital expenditure in the intervening quarters, and the fact that some network components are expected to be replaced earlier than originally anticipated due to the strong growth the company is experiencing.

•

Increased capital expenditure was due to network investments required by the increase in customer base and traffic volumes.

PANNON GSM — HUNGARY


	2nd quarter				1st half-year				Year
(NOK in millions)	2005		2004		2005		2004		2004

Subscription and traffic		903		872		1,783		1,744		3,669
Interconnection revenues		458		443		888		866		1,731
Mobile revenues company’s subscriptions		1,361		1,315		2,671		2,610		5,400
Other mobile revenues		44		39		72		64		142
Total mobile revenues		1,405		1,354		2,743		2,674		5,542
Non-mobile revenues		93		90		170		171		365
Total revenues 1)		1,498		1,444		2,913		2,845		5,907

1) Of which internal revenues		2		2		4		3		6

EBITDA		484		556		1,001		1,112		2,093
Depreciation and amortization 1)		276		326		592		657		1,295
Write-downs		2		—		2		—		21
Operating profit		206		230		407		455		777

1) Of which amortization of Telenor’s net excess values by		85		89		175		178		358

EBITDA/Total revenues (%)		32.3		38.5		34.4		39.1		35.4
Operating profit/ Total revenues (%)		13.8		15.9		14.0		16.0		13.2
Capex		243		121		352		225		1,166
ARPU – monthly (NOK)		162		170		160		168		173
No. of subscriptions (in thousands)						2,824		2,588		2,770

The Norwegian Krone appreciated against the Hungarian Forint by approximately 4% in the second quarter of 2005 compared to the second quarter of 2004.

•		The number of contract subscriptions increased by 72,000 during the quarter, while total subscriptions increased by 32,000. Compared to the second quarter of 2004, the number of contract subscriptions increased by 256,000.

•		Pannon GSM’s estimated market share at the end of the second quarter of 2005 was 34%, in line with the previous quarter.

•		ARPU measured in local currency was in line with the second quarter of 2004. High increase in usage (AMPU) due to the increased share of contract subscriptions and lower prices was offset by decrease in average prices.

•		Revenues measured in local currency increased by 8% due to increased number of subscriptions and higher AMPU, partially offset by price reductions.

•		The decrease in EBITDA margin was primarily due to increased interconnection charges as a result of increased traffic to other mobile networks and increased commissions and costs related to sales and marketing activities. EBITDA measured in local currency decreased by 9%.

•		Depreciation and amortization decreased due to certain fixed assets being fully depreciated and the estimated useful life for certain assets being increased.

•		Capital expenditure increased due to network rollout of UMTS and EDGE.

•		The regulatory authorities in Hungary have 21 July announced reduction of interconnection charges for all mobile operators. For Pannon the reduction in interconnection prices will be approximately 10%.

DIGI.COM – MALAYSIA


	2nd quarter				1st half-year				Year
(NOK in millions)	2005		2004		2005		2004		2004

Subscription and traffic		924		662		1,716		1,304		2,794
Interconnection revenues		143		137		280		284		571
Mobile revenues company’s subscriptions		1,067		799		1,996		1,588		3,365
Other mobile revenues		15		18		29		35		65
Total mobile revenues		1,082		817		2,025		1,623		3,430
Non-mobile revenues		79		141		170		271		516
Total revenues 1)		1,161		958		2,195		1,894		3,946

1) Of which internal revenues		—		1		1		2		3

EBITDA		499		410		950		836		1,732
Depreciation and amortization 1)		253		226		510		455		901
Write-downs		—		—		1		—		—
Operating profit		246		184		439		381		831

1) Of which amortization of Telenor’s net excess values by		17		18		34		37		72

EBITDA/Total revenues (%)		43.0		42.8		43.3		44.1		43.9
Operating profit/ Total revenues (%)		21.2		19.2		20.0		20.1		21.1
Capex		178		162		286		265		920
ARPU – monthly (NOK)		99		107		96		110		107
No. of subscriptions (in thousands)						3,765		2,583		3,239

Telenor’s ownership interest was 61.0% at the end of the second quarter of 2005. The Norwegian Krone appreciated against the Malayan Ringgit by approximately 7% in the second quarter of 2005 compared to the second quarter of 2004.

•		The number of subscriptions increased by 304,000 during the second quarter of 2005 and by 1.2 million compared to the end of the second quarter of 2004.

•		DiGi’s estimated market share of 22% was in line with the previous quarter.

•		ARPU measured in local currency was in line with the second quarter of 2004.

•		Revenues measured in local currency increased by 30%. Revenues measured in local currency from subscription and traffic increased by 50% due to the higher subscription base and increased usage (AMPU), partially offset by decrease in prices. Interconnection revenues showed lower growth because an increased share of the mobile traffic in the Malayan market is within the operators’ own networks (on-net traffic).

•		Non-mobile revenues measured in local currency decreased by 40% primarily due to decreased international transit traffic as a result of increased competition.

•		The EBITDA margin was in line with the second quarter of 2004. Measured in local currency, EBITDA increased by 31% due to increased revenues.

•		Depreciation and amortization increased mainly as a result of the decrease in estimated useful life for certain assets.

•		Capital expenditure was related to investments in the network due to increased usage, a higher subscriber base and improved coverage.

GRAMEENPHONE — BANGLADESH


	2nd quarter				1st half-year				Year
(NOK in millions)	2005		2004		2005		2004		2004

Subscription and traffic		659		500		1,257		970		2,064
Interconnection revenues		39		20		73		29		90
Mobile revenues company’s subscriptions		698		520		1,330		999		2,154
Other mobile revenues		5		6		10		13		24
Total mobile revenues		703		526		1,340		1,012		2,178
Non-mobile revenues		2		3		5		6		8
Total revenues 1)		705		529		1,345		1,018		2,186

1) Of which internal revenues		—		—		—		—		—

EBITDA		334		309		663		592		1,313
Depreciation and amortization		89		51		166		85		215
Write-downs		—		—		—		—		3
Operating profit		245		258		497		507		1,095


EBITDA/Total revenues (%)		47.4		58.4		49.3		58.2		60.1
Operating profit/Total revenues (%)		34.8		48.8		37.0		49.8		50.1
Capex		357		258		853		418		1,318
Investments in businesses		—		—		—		—		298
ARPU – monthly (NOK)		69		106		75		113		104
No. of subscriptions (100% in thousands)						3,704		1,795		2,388

Telenor’s ownership interest was 62.0% at the end of the second quarter of 2005. The Norwegian Krone appreciated against the Bangladeshi Taka by approximately 13% in the second quarter of 2005 compared to the second quarter of 2004.

•		The strong subscription growth continued with an increase of 776,000 subscriptions during the second quarter of 2005. Compared to the second quarter of 2004, the number of subscriptions more than doubled with an increase of 1.9 million subscriptions.

•		GrameenPhone’s estimated market share at the end of the second quarter of 2005 was 62%, an increased from 61% at the end of the first quarter of 2005.

•		ARPU decreased by 25% measured in local currency, primarily due to the strong customer growth, the fact that new customers on average have lower usage (AMPU) than existing customers, and decrease in average prices.

•		Revenues increased by 53% measured in local currency primarily due to the increased number of subscriptions.

•		The decrease in EBITDA margin was primarily due to increased sales and acquisition costs as a result of the competition, with a significantly higher customer growth compared to the second quarter of 2004. Measured in local currency, EBITDA increased by 24% primarily due to increased revenues.

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

•		Increased capital expenditure was due to the expansion of mobile coverage to new areas and increased mobile network capacity due to the strong subscription growth.

•		From 9 June 2005, the authorities in Bangladesh have introduced a new fee per unit on sale of SIM cards of approximately NOK 90.

•		The Bangladesh Telecommunication Regulatory Commission has in the second quarter of 2005 requested that GrameenPhone pay royalty and license fees on handsets according to the license requirements. The legitimacy and amount of the request for payment has not yet been clarified. Telenor is of the opinion that necessary provisions have been made.

OTHER MOBILE OPERATIONS


	2nd quarter						1st half-year						Year
(NOK in millions)	2005			2004			2005			2004			2004

Revenues
Telenor Pakistan		48			—			49			—			—
ProMonte GSM – Montenegro		123			—			227			—			200
Telenor Mobile Sweden		65			55			128			101			223
Total revenues 1)		236			55			404			101			423

1) Of which internal revenues		40			21			68			35			88

EBITDA
Telenor Pakistan		(172	)		(13	)		(305	)		(13	)		(78	)
ProMonte GSM – Montenegro		60			—			115			—			91
Telenor Mobile Sweden		(18	)		(36	)		(28	)		(61	)		(725	)
Total EBITDA		(130	)		(49	)		(218	)		(74	)		(712	)

Depreciation and amortization 1)		102			7			159			15			116
Write-downs		—			—			—			—			75
Operating loss		(232	)		(56	)		(377	)		(89	)		(903	)

Of which:
Telenor Pakistan		(232	)		(13	)		(379	)		(13	)		(78	)
ProMonte GSM – Montenegro		18			—			30			—			24
Telenor Mobile Sweden		(18	)		(43	)		(28	)		(76	)		(849	)

1) Of which amortization of Telenor’s net excess values by		20			—			40			—			32

Investments:
Capex		(87	)		1,825			1,057			1,829			2,026
Investments in businesses		—			—			—			—			541

No. of subscriptions (in thousands)
Telenor Pakistan								836			—			—
ProMonte GSM								303			—			279
Telenor Mobile Sweden								99			92			105

Other mobile operations include Telenor Pakistan, ProMonte GSM and Telenor Mobile Sweden. The operation in Pakistan was established in the second quarter of 2004. ProMonte GSM was an associated company up until 12 August 2004, when Telenor acquired the remaining shares. The Norwegian Krone depreciated by approximately 3% against the Pakistani Rupee and appreciated by approximately 3% against the Euro, the functional currency of ProMonte GSM, in the second quarter of 2005 compared to the first quarter of 2005. The Norwegian Krone appreciated by approximately 4% against the Swedish Krone in the second quarter of 2005 compared to the second quarter of 2004.

Telenor Pakistan

•		Telenor Pakistan experienced a strong customer growth and had 836,000 subscriptions at the end of the second quarter of 2005.

•		With an estimated market share of 7% at the end of the second quarter of 2005, Telenor Pakistan was the third largest mobile operator in Pakistan.

•		ARPU is low due to the company still being in a start-up phase. Decreased EBITDA was primarily the result of high sales and customer acquisition costs and costs related to the start-up.

•		Negative capital expenditure in the second quarter of 2005 was due to a change in the payment profile for the license for mobile telephony, which reduced the net present value of future license payments. The Pakistani authorities have adjusted Telenor Pakistan’s payment obligations to bring them in line with the payment obligations of other mobile operators.

ProMonte GSM

•		The number of subscriptions at the end of the second quarter of 2005 increased by 24,000 following the start of the tourist season.

•		ProMonte GSM’s estimated market share at the end of the second quarter of 2005 was 58% compared to 57% at the end of the first quarter of 2005.

Telenor Mobile Sweden

•		Revenues increased compared to the second quarter of 2004, primarily due to increased roaming revenues from visitors to Sweden.

•		Losses were reduced primarily due to decrease in traffic costs related to the MVNO agreement, increased volume on roaming and decreased sales and marketing costs.

FIXED


	2nd quarter						1st half-year						Year
(NOK in millions)	2005			2004			2005			2004			2004

Revenues
Norway		4,367			4,427			8,530			8,910			17,545
Sweden		374			430			766			856			1,654
Other countries *)		44			44			88			87			175
Eliminations		(32	)		(24	)		(60	)		(53	)		(118	)
Total revenues 1)		4,753			4,877			9,324			9,800			19,256

1) Of which internal revenues		522			457			983			889			1,823

EBITDA		1,504			1,631			2,912			3,263			6,338
Depreciation and amortization 1)		729			897			1,512			1,851			3,573
Write-downs 2)		2			—			(20	)		—			40
Operating profit		773			734			1,420			1,412			2,725

1) Of which amortization of Telenor’s net excess values by		2			—			3			—			7
2) Of which write-downs of Telenor’s net excess values by		—			—			(31	)		—			(22	)

EBITDA/Total revenues (%)		31.6			33.4			31.2			33.3			32.9
Operating profit/Total revenues (%)		16.3			15.1			15.2			14.4			14.2
Capex		556			385			937			763			1,791
Investments in businesses		1			10			44			96			105

*)	Other countries include operations in the Czech Republic and Slovakia.

•	Bredbandsbolaget and Cybercity will be consolidated in the Fixed operations with effect from July 2005.

FIXED – NORWAY


	2nd quarter				1st half-year					Year
(NOK in millions)	2005		2004		2005			2004		2004

Revenues
Telephony (PSTN/ISDN)		1,867		2,117		3,738			4,300		8,268
ADSL/Internet		508		417		969			843		1,753
Data services		243		267		475			514		1,022
Other revenues		400		386		742			842		1,656
Total retail revenues		3,018		3,187		5,924			6,499		12,699
Wholesale revenues		1,349		1,240		2,606			2,411		4,846
Total revenues 1)		4,367		4,427		8,530			8,910		17,545

1) Of which internal revenues		522		454		985			892		1,842

EBITDA		1,532		1,606		2,970			3,237		6,330
Depreciation and amortization 1)		658		819		1,363			1,699		3,251
Write-downs 2)		—		—		(22	)		—		2
Operating profit		874		787		1,629			1,538		3,077

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

EBITDA/Total revenues (%)		35.1		36.3		34.8			36.3		36.1
Operating profit/Total revenues (%)		20.0		17.8		19.1			17.3		17.5
Capex		503		315		840			670		1,473
Investments in businesses		1		1		44			1		2
No. of PSTN subscriptions (in thousands)						1,139			1,219		1,182
No. of ISDN subscriptions (lines in thousands)						1,335			1,548		1,449
No. of ADSL subscriptions (in thousands)						415			235		326

•		The number of ADSL residential and business subscriptions increased by 30,000 in the second quarter of 2005 to 415,000, an increase of 180,000 compared to the end of the second quarter of 2004. Telenor’s estimated market share for ADSL was 60% at the end of the second quarter of 2005, in line with the end of the previous quarter.

•		The number of PSTN/ISDN subscriptions decreased by 55,000 in the second quarter of 2005, a reduction of 183,000 from the second quarter of 2004.

•		At the end of the second quarter, Telenor’s estimated market share measured in traffic minutes was 67%, in line with the end of the first quarter of 2005.

•		Adjusted for the sale of Operating Services to EDB Business Partner as of 1 May 2004, revenues decreased by 0.5%. The decrease in revenues from Telephony (PSTN/ISDN) and Data services was only partially offset by an increase in ADSL/Internet revenues and wholesale revenues. Adjusted for the sale of Operating Services to EDB Business Partner, the EBITDA margin decreased by 0.8 percentage points and the operating profit margin increased by 2.5 percentage points. For the first half year, the correspondingly adjusted revenues decreased by 2.5%.

•		Revenues from Telephony (PSTN/ISDN) decreased as a result of a decrease in the number of PSTN/ISDN subscriptions and reduced traffic volumes. The number of subscriptions decreased as a result of the transition to ADSL, the transition to voice over IP with other fixed network operators, and the transition to wholesale, as well as a reduction in the total market for fixed network subscriptions. The reduction in traffic volumes was primarily related to the decrease in number of subscriptions.

•		Revenues from ADSL/Internet increased due to increased revenues from subscriptions and connections as a result of the growth in the number of ADSL subscriptions, partially offset by lower revenues from Internet traffic and Internet subscriptions.

•		The decrease in revenues from data services was due to price reductions and a shift in the product portfolio.

•		Other revenues increased due to increased sales of services to other operations within Telenor, partially offset by the effect from the sale of Operating Services to EDB Business Partner as of 1 May 2004.

•		Increased wholesale revenues were primarily related to increased sales of international traffic volumes, increased revenues from leased lines and operator access, partially offset by a decrease in revenues from national interconnection.

•		The decrease in EBITDA was primarily due to a lower gross margin as a result of the decrease in revenues and a shift of the product portfolio towards products with lower margins. The financial results in the second quarter of 2005 were positively affected by an adjustment of the estimate for cost accruals.

•		The decrease in depreciation and amortization was primarily due to lower capital expenditure in recent years and the sale of Operating Services to EDB Business Partner.

•		Increased capital expenditure was related to improving processes and expansion of broadband.

FIXED – SWEDEN


	2nd quarter						1st half-year						Year
(NOK in millions)	2005			2004			2005			2004			2004

External revenues		342			404			709			807			1,557
Internal revenues		32			26			57			49			97
Total revenues		374			430			766			856			1,654


EBITDA		(27	)		24			(56	)		21			9
Depreciation and amortization 1)		63			65			127			126			262
Write-downs 2)		—			—			—			—			36
Operating loss		(90	)		(41	)		(183	)		(105	)		(289	)

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

Capex		48			72			88			87			279
Investments in businesses		—			9			—			87			93

•		In the second quarter of 2005 a gain on disposal of operations of NOK 46 million was recognized, while the second quarter of 2004 included non-recurring revenues of NOK 31 million related to sales of data services on a wholesale basis undertaken in previous periods.

•		Revenues decreased, primarily as a result of reduced revenues from data services due to price reductions and a shift in the product portfolio.

•		The decrease in EBITDA was primarily related to a reduced gross margin as a result of the decrease in revenues and a shift in the product portfolio towards products with lower gross margins, as well as installation costs related to a new DSL wholesale customer.

•		Capital expenditure in the second quarter of 2005 was primarily related to expansion of the DSL infrastructure.

BROADCAST


	2nd quarter						1st half-year						Year
(NOK in millions)	2005			2004			2005			2004			2004

Revenues
Distribution		1,147			1,064			2,286			2,125			4,309
Transmission		298			310			595			613			1,211
Other		85			109			169			213			461
Eliminations		(129	)		(148	)		(259	)		(310	)		(635	)
Total revenues 1)		1,401			1,335			2,791			2,641			5,346

1) Of which internal revenues		35			33			63			68			135

EBITDA
Distribution		242			218			455			410			749
Transmission		175			161			349			314			688
Other/Eliminations		(6	)		13			(13	)		17			61
Total EBITDA		411			392			791			741			1,498
Depreciation and amortization 1)		133			174			277			361			704
Write-downs 2)		4			—			4			—			44
Operating profit		274			218			510			380			750

Of which:
Distribution		179			115			322			189			302
Transmission		107			94			213			181			409
Other/Eliminations		(12	)		9			(25	)		10			39

1) Of which amortization of Telenor’s net excess values by		14			17			28			31			63
2) Of which write-downs of Telenor’s net excess values by		—			—			—			—			25

EBITDA/Total revenues (%)		29.3			29.4			28.3			28.1			28.0
Operating profit/Total revenues (%)		19.6			16.3			18.3			14.4			14.0
Capex		96			70			143			93			880
No. of DTH pay-TV subscribers (in thousands)								853			782			824
No. of Cable TV subscribers (in thousands)								619			611			624
No. of households in small antenna networks (in thousands)								1,205			1,161			1,212
No. of Cable TV Internet access (in thousands)								50			35			44

•

The number of DTH pay-TV subscribers increased by 71,000 from the end of the second quarter of 2004 to the end of the second quarter of 2005. The number of Cable TV subscribers increased by 8,000 during the same period, and the number of cable TV Internet accesses increased by 15,000 to 50,000 at the end of the second quarter of 2005.

BROADCAST – DISTRIBUTION

•		The increase in revenues was primarily due to the growth in the number of subscribers offset by effect of the appreciation of the Norwegian Kroner against the Swedish Krone and the Danish Krone.

•		Increased EBITDA was primarily due to increased revenues and reduced purchases of internal services in Broadcast. This was partially offset by increased customer acquisition costs for DTH pay-TV subscribers as a result of new customers receiving decoders for a lock-in period, while decoders previously were capitalised and leased out to the customers.

•		Depreciation and amortization decreased due to fully depreciated DTH decoders and fully depreciated fixed assets in the cable TV operation.

•		Capital expenditure consists primarily of upgrades of the cable TV network in Norway.

•		Canal Digital and TV2 has acquired the rights for distribution of Norwegian football on TV, Internet, broadband and mobile. These rights are valid for the period 2006-2009 for the Norwegian premier league and the Norwegian first division, and 2006-2010 for national finals, the national cup and the woman’s football league.

•		The Swedish Riksdag has decided to commence the regional shut down of the Swedish terrestrial analogue network for TV distribution in the third quarter of 2005. Consequently 200,000-250,000 households will lose the analogue TV signal. Alternative ways of TV distribution will be cable, DTH or DTT.

BROADCAST – TRANSMISSION

•

Reduced revenues in Transmission were due to lower satellite revenues as a result of the transition from analogue to digital distribution. This was partially offset by increased revenues from terrestrial broadcasting.

•

Investments in a satellite in August 2004 have resulted in lower costs for leasing satellite capacity and were the main reason for the increased EBITDA and EBITDA margin.

•

Increased depreciation and amortization as a result of investments in satellite capacity in August 2004 was offset by lower depreciation due to the increase in the estimated useful life for certain fixed assets in Norkring with effect from 1 January 2005.

BROADCAST – OTHER

•

The decrease in revenues and EBITDA was related to lower revenues from sales of internal services.

OTHER UNITS


		2nd quarter						1st half-year					Year
(NOK in millions)	2005			2004			2005			2004			2004

Revenues
EDB Business Partner		1,285			1,044			2,516			2,091			4,287
Satellite Services		592			616			1,181			1,217			2,385
Venture		125			245			241			462			901
Corporate functions and Group activities		603			552			1,185			1,081			2,154
Other		9			62			27			132			174
Eliminations		(72	)		(106	)		(141	)		(200	)		(361	)
Total revenues 1)		2,542			2,413			5,009			4,783			9,540

1) Of which internal revenues		803			710			1,591			1,444			2,929

EBITDA
EDB Business Partner		187			456			364			594			978
Satellite Services		90			103			158			228			409
Venture		(1	)		1			5			(2	)		130
Corporate functions and Group activities		(34	)		(75	)		(40	)		(170	)		(417	)
Other/eliminations		(10	)		24			(13	)		40			14
Total EBITDA		232			509			474			690			1,114

Depreciation and amortization 1)		262			260			512			492			975
Write-downs 2)		—			1			—			4			43
Operating profit (loss)		(30	)		248			(38	)		194			96

Of which:
EDB Business Partner		80			396			161			485			736
Satellite Services		26			36			30			91			133
Venture		(6	)		(7	)		(4	)		(21	)		97
Corporate functions and Group activities		(120	)		(182	)		(212	)		(363	)		(809	)
Other/eliminations		(10	)		5			(13	)		2			(61	)

1) Of which amortization of Telenor’s net excess values by		2			2			4			4			8
2) Of which write-downs of Telenor’s net excess values by		—			—			—			2			3

Capex		193			241			318			329			697
Investments in businesses		263			441			270			463			1,329

EDB BUSINESS PARTNER

•		Revenues increased by 23% compared to the second quarter of 2004, with the highest growth being related to IT Operations and Solutions. The growth in IT Operations was primarily related to strategic contracts which were entered into during the course of 2004, which comprise the purchase of parts of Telenor’s IT Operating Services, as well as the acquisitions from IBM and Capgemini. Revenues in Solutions increased primarily as a result of a high level of activity.

•		The decrease in EBITDA compared to the second quarter of 2004 was related to a sales gain of NOK 301 million in the second quarter of 2004.

•		Depreciation and amortization increased as a result of a shift from operating leases to own investments, and increased capital expenditure in the intervening quarters.

•		In the second quarter of 2005, BanqIT Business Applications AB was acquired for NOK 52 million and has been incorporated under Solutions.

SATELLITE SERVICES

•

The decrease in revenues in Satellite Services was primarily due to the strengthening of the Norwegian Krone against the US Dollar, lower volumes and sales prices in the Inmarsat segment, partially offset by the effects of acquisition of operations. The reduced operating profit was due to reduced volumes and margins in the Inmarsat segment.

VENTURE

•

Lower revenues were primarily due to the effects from acquisition and disposal of operations in 2004. The operating loss in the second quarter of 2005 was primarily due to the establishment of Opplysningen Online, offset by gain on disposal of activities in Opplysningen AS. There was a positive development in profits and market share in Opplysningen AS. In the second quarter of 2005, operations were acquired for NOK 34 million in connection with the establishment of Opplysningen Online.

CORPORATE FUNCTIONS AND GROUP ACTIVITIES

•

Increased revenues were related to increased sales of group services.

•		The decrease in EBITDA loss was related to expenses for workforce reductions in the second quarter of 2004 due to Telenor Group merging several IT operating environments. This effect was partially offset by increased operating and maintenance expenses in the property operation and lease back of sold properties.

•		Depreciation and amortisation decreased due to buildings being sold and the increase in the estimated useful life for certain fixed assets.

•		In the second quarter of 2005, Telenor made a capital contribution of NOK 158 million to the associated company One GmbH through conversion of debt. This is reported as investment in businesses.

OTHER PROFIT AND LOSS ITEMS FOR THE GROUP

Depreciation, amortization and write-downs


		2nd quarter				1st half-year				Year
(NOK in millions)	2005		2004		2005			2004		2004

Depreciation of tangible assets 1)		2,006		1,977		3,955			3,887		7,737
Amortization of other intangible assets 2)		745		730		1,500			1,328		2,900
Total depreciation and amortization		2,751		2,707		5,455			5,215		10,637

Write-downs of tangible and other intangible assets		20		1		28			2		282
Write-downs of goodwill		—		—		(31	)		2		3,129
Write-downs of other intangible assets		—		—		—			—		120
Total write-downs		20		1		(3	)		4		3,531

Total depreciation, amortization and write-downs		2,771		2,708		5,452			5,219		14,168

1) Specification of depreciation of tangible assets


Telenor Mobil – Norway	174		192		331	358		781
Sonofon – Denmark	111		140		222	210		340
Kyivstar – Ukraine	247		62		410	130		301
Pannon GSM – Hungary	152		173		308	351		689
DiGi.Com – Malaysia	214		196		438	392		779
GrameenPhone – Bangladesh	83		49		154	81		205
Other mobile operations	49		2		72	2		32
Fixed	652		791		1,357	1,637		3,173
Broadcast	117		149		244	315		605
Other operations	209		224		419	432		838
Eliminations	(2	)	(1	)	—	(21	)	(6	)
Total depreciation of tangible assets	2,006		1,977		3,955	3,887		7,737

2) Specification of amortization of other intangible assets


Telenor Mobil – Norway	56	82	112	156	282
Sonofon – Denmark	217	216	459	335	850
Kyivstar – Ukraine	85	65	152	123	255
Pannon GSM – Hungary	124	154	284	307	605
DiGi.Com – Malaysia	39	30	72	63	123
GrameenPhone – Bangladesh	7	1	13	3	11
Other mobile operations	52	7	86	14	83
Fixed	77	107	155	214	399
Broadcast	17	25	33	46	99
Other operations	51	36	93	60	136
Eliminations	20	7	41	7	57
Total amortization of other intangible assets	745	730	1,500	1,328	2,900

•		The increase in depreciation of tangible fixed assets in Kyivstar was primarily related to the fact that some network components are expected to be replaced earlier than originally anticipated due to the strong growth the company is experiencing. This was partially offset by decreased depreciation as a result of fully depreciated fixed assets, in particular in Fixed and Broadcast. In general, depreciation and amortization is affected by changes in exchange rates and the investment levels in the previous quarters.

•		ProMonte GSM was consolidated with effect from 12 August 2004, and Telenor Pakistan opened its mobile network for commercial services on 15 March 2005, which generated increased depreciation compared to the second quarter of 2004.

Associated companies


		2nd quarter						1st half-year					Year
(NOK in millions)	2005			2004			2005			2004			2004

Telenors share of 1)
Net income after taxes		505			294			760			568			1,055
Amortization of Telenor’s net excess values		(14	)		(13	)		(30	)		(62	)		(101	)
Gains on disposal of ownership interests		3			9			3			9			32
Net result from associated companies		494			290			733			515			986

The figures are partially based on Telenor’s estimates in connection with the preparation of the consolidated financial statements. The consolidated profit and loss statement contains only the line “Net result from associated companies”. The table includes Telenor’s share of net income in Sonofon until 12 February 2004 and ProMonte GSM until 12 August 2004. Thereafter these companies are consolidated as subsidiaries.

•		Telenor’s ownership interest in VimpelCom in Russia was 29.9% at the end of the second quarter of 2005. The value of Telenor’s share of the company based on the quoted share price as at 30 June 2005 was NOK 13.7 billion. According to telecom analysts, VimpelCom had approximately 35 million subscriptions at the end of the second quarter of 2005.

•		Telenor’s direct and indirect ownership interest in DTAC in Thailand was 40.3% at the end of the second quarter of 2005. The value of Telenor’s share of the company based on the quoted share price as at 30 June 2005 was NOK 3.8 billion. The number of subscriptions in DTAC at the end of May 2005 was approximately 8.18 million.

Financial items


		2nd quarter						1st half-year					Year
(NOK in millions)	2005			2004			2005			2004			2004

Financial income		138			114			215			219			496
Financial expenses		(373	)		(420	)		(717	)		(836	)		(1,561	)
Net forreign currency gain (loss)		177			(8	)		152			(39	)		(87	)
Change in fair value of financial instruments		(37	)		—			(11	)		—
Net gains (losses) and write-downs		67			17			484			2,630			2,673
Net financial items		(28	)		(297	)		123			1,974			1,521


Gross interest expenses		(383	)		(418	)		(737	)		(823	)		(1,582	)
Net interest expenses		(314	)		(324	)		(605	)		(636	)		(1,199	)

•		Increased financial income compared to the second quarter of 2004 was primarily due to NOK 27 million in dividends from other financial investments in the second quarter of 2005.

•		Decreased financial expenses was primarily due to lower average interest rates on the debt portfolio. Increased capitalization of interest on assets under construction and other financial expenses also contributed to the decrease.

•		Net foreign currency gain in the second quarter of 2005 was primarily due to gains on debt in subsidiaries outside Norway as well as a gain on currency options of NOK 77 million used in the economic hedge of the acquisition of Bredbandsbolaget. Foreign currency forward contract used in this hedge qualify for hedge accounting, and for this part NOK 161 million before taxes has been recorded as a temporary reduction of equity as of 30 June 2005.

•		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.

•		In the second quarter of 2005 Telenor realized gains on sale of shares, primarily sale of Telenor’s shares in Eutelsat.

Taxes

•		The nominal Norwegian corporate income tax (“CIT”) rate is 28%. The effective tax rate for the Telenor Group for the fiscal year 2005 is estimated to be 30% of profit before taxes and minority interests. The estimated effective tax rate is higher than the Norwegian nominal CIT rate primarily due to taxes related to companies outside Norway, including the effect of recording deferred taxes on retained earnings in certain companies.

•		The actual effective tax rate for 2005 may deviate from the estimated rate.

Balance sheet and cash flow

•		Total assets as of 30 June 2005 increased by NOK 3.3 billion compared to 31 March 2005, primarily due to issue of interest-bearing liabilities.

•		Gross interest-bearing liabilities increased in the quarter due to the issue of new interest-bearing liabilities to fund the acquisitions of Bredbandsbolaget and Cybercity as well as bond issues in Kyivstar.

•		Increased current assets were primarily due to increased liquid assets. The relatively high level of liquid assets should be seen in light of the payment of the acquisitions of Bredbandsbolaget and Cybercity in July 2005.

•		Net interest-bearing liabilities increased by NOK 1.9 billion in the quarter to NOK 17.8 billion as of 30 June 2005. The Annual General Meeting of Telenor declared dividends of NOK 2.6 billion, of which NOK 2.5 billion was paid in the second quarter of 2005. During the second quarter of 2005, Telenor purchased its own shares in the market for NOK 0.3 billion. In addition, shareholders equity was reduced and net interest-bearing liabilities increased in the second quarter by NOK 1.2 billion as a result of the Annual General Meeting approval of the redemption of shares owned by the Kingdom of Norway. If the Annual General Meeting of Telenor’s shareholders in 2006 approves to redeem shares owned by the Kingdom of Norway corresponding to Telenor’s repurchase of own shares in the market in the second quarter of 2005, in such a way that the Kingdom of Norway’s ownership interest remains unchanged, shareholders equity will be reduced by an additional NOK 0.4 billion at the time of the Annual General Meeting.

US GAAP

•

Telenor had a net income in accordance with General Accepted Accounting Principles in the United States (US GAAP) of NOK 1,904 million in the second quarter of 2005 compared to net income in accordance with IFRS of NOK 2,041 million.

OUTLOOK FOR 2005

•		Telenor maintains its outlook for 2005 as presented in Telenor’s report for the first quarter of 2005.

•		A continued high growth in revenues and EBITDA is expected for the total mobile operations in 2005.

•		In Fixed – Norway, revenues and EBITDA is expected to decrease. The strong growth in the number of ADSL subscriptions is expected to continue. The related expected increased revenue from ADSL, in addition to expected increased revenues from wholesale, is not expected to fully offset decreased revenues from PSTN/ISDN.

•		Cost reductions as assumed, in particular within Fixed, will be implemented.

•		In Broadcast and other units, we expect EBITDA to improve in 2005 compared to 2004.

•		High capital expenditure is expected for 2005, in which capital expenditure in proportion to revenues is expected to be in line with or slightly exceed 2004 levels.

•		A continuously increasing share of Telenor’s revenues and results come from operations outside Norway. Currency fluctuations will to an increasing extent influence the reported figures in Norwegian Krone. Political risk, including regulatory conditions, might also influence the results.

•		Telenor expects that profits, adjusted for special items, overall will grow in 2005 compared to 2004.

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 2005” 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 2004 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, 21 July 2005
The Board of Directors of Telenor ASA

IMPLEMENTATION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)

Regulations of the European Union (EU) require that publicly listed companies within the EU prepare their consolidated financial statements in accordance with “International Financial Reporting Standards” (IFRS) by 2005. Due to the European Economic Area (EEA) agreement, Norwegian listed companies will also be required to follow IFRS. Telenor’s first IFRS financial statements will be for the year ending 31 December 2005 and will include the comparative period for 2004. Starting in the first quarter of 2005, Telenor will provide unaudited financial information in accordance with IFRS including comparable figures for 2004.

Telenor has made an evaluation of the differences between Telenor’s accounting principles according to Norwegian Generally Accepted Accounting Principles (N GAAP) and IFRS principles based on management’s current understanding of these standards. There is inherent uncertainty around the interpretation and implementation of IFRS. Accordingly, new pronouncements and interpretations may be issued during 2005, which could affect the final IFRS figures for 2004 and the interim figures for 2005. Consequently, changes in the company’s understanding of IFRS may result in revisions or other differences than those identified below. The figures are not audited. Audited figures will be reported in the financial statements for the year ended 31 December 2005.

The tables below show the estimated effects on net income and equity of implementing IFRS as from 1 January 2004. The accounting principles according to N GAAP are found in the annual report for 2004. The main changes in accounting principles when preparing Telenor’s financial statements according to IFRS and Comments to the various effects on net income and equity are provided in Telenor’s first quarter report for 2005.


Profit and loss 2004	First			Second			Third			Fourth			Year
(NOK in millions)	quarter			quarter			quarter			quarter			2004

Net income (loss) – NGAAP		2,801			1,410			1,399			(252	)		5,358
Amortization of goodwill, negative goodwill		213			245			247			234			939
Depreciation and amortization – other		13			(7	)		4			53			63
Write-down of goodwill		—			—			—			(935	)		(935	)
Pensions		24			24			23			24			95
Asset Retirement Obligations		(10	)		(11	)		(12	)		(13	)		(46	)
Share-based compensation		(4	)		(5	)		(5	)		(5	)		(19	)
Sale of software		11			2			23			15			51
Associated companies		92			79			39			58			268
Adjusted gains		20			(6	)		5			15			34
Tax on IFRS adjustments		(21	)		(6	)		(20	)		(8	)		(55	)
Minority interests		(9	)		(16	)		(20	)		(32	)		(76	)
Total adjustments		330			299			284			(594	)		319

Net income (loss) – IFRS		3,131			1,709			1,683			(846	)		5,677


Equity (NOK in millions)		01.01.2004			31.03.2004			30.06.2004			30.09.2004			31.12.2004

Shareholders equity – NGAAP		37,237			40,083			40,130			41,248			37,594
Amortization of goodwill, negative goodwill		343			556			801			1,048			1,282
Depreciation and amortization – other		—			13			6			10			63
Write-down of goodwill		—			—			—			—			(935	)
Business Combinations		—			622			622			786			622
Pensions		(1,825	)		(1,801	)		(1,777	)		(1,754	)		(1,730	)
Asset Retirement Obligations		(296	)		(306	)		(317	)		(329	)		(342	)
Share-based compensation		—			—			—			—			—
Sale of software		(267	)		(256	)		(254	)		(231	)		(216	)
Associated companies		(139	)		(47	)		32			71			129
Adjusted gains and translation differences		—			(57	)		(49	)		(93	)		(66	)
Tax on IFRS adjustments		595			574			568			548			540
Dividends		1,776			1,776			—			—			2,602
Minority interests		226			218			202			182			150
Total adjustments		413			1,292			(166	)		238			2,099

Shareholders equity – IFRS		37,650			41,375			39,964			41,486			39,693

Reconciliation of shareholders’ equity for the Telenor Group from 31 December 2004 to 1 January 2005 due to the implementation of IAS 39.

IAS 39 “Financial Instruments: Recognition and Measurement” was implemented as of 1 January 2005. Up to and including 31 December 2004, Telenor accounted for Financial Instruments according to N GAAP.


(NOK in millions)
Shareholders’ equity 31 December 2004	39,693

Derivative instruments at fair value
– cash flow hedges	13
– derivatives not qualifying as hedges	(289	)
Shares available-for-sale at estimated fair value *)	753
Tax on the changes	(16	)
Minority’s share	(8	)
Total adjustments	453

Shareholders’ equity 1 January 2005	40,146

*) Estimated fair value of shares available-for-sale is increased by NOK 295 million compared to the equity reconciliation presented in Telenor’s first quarter report for 2005 due to new information about conditions as of 1 January 2005.

PROFIT AND LOSS STATEMENT


Telenor group		2nd quarter						1st half-year					Year
(NOK in millions except net income per share)	2005			2004			2005			2004			2004

Revenues		16,542			15,226			31,812			29,471			60,701
Costs of materials and traffic charges		4,355			3,957			8,351			7,582			16,050
Own work capitalized		(186	)		(164	)		(308	)		(288	)		(557	)
Salaries and personnel costs		2,562			2,506			5,098			5,020			9,970
Other operating expenses		4,247			3,398			8,022			6,560			13,871
Other (income) and expenses		(66	)		(169	)		(87	)		(149	)		410
Depreciation and amortization		2,751			2,707			5,455			5,215			10,637
Write-downs		20			1			(3	)		4			3,531

Operating profit		2,859			2,990			5,284			5,527			6,789

Associated companies		494			290			733			515			986
Net financial items		(28	)		(297	)		123			1,974			1,521
Profit before taxes and minority interests		3,325			2,983			6,140			8,016			9,296

Taxes		(997	)		(911	)		(1,842	)		(2,521	)		(2,299	)
Profit before minority interests		2,328			2,072			4,298			5,495			6,997

Minority interests		(287	)		(363	)		(547	)		(655	)		(1,320	)
Net income		2,041			1,709			3,751			4,840			5,677


Net income per share in NOK (basic), excluding treasury shares		1.19			0.97			2.17			2.74			3.25
Net income per share in NOK (diluted), excluding treasury shares		1.19			0.97			2.17			2.74			3.24

US GAAP
Net income		1,904			1,569			3,529			4,560			5,639
Net income per share in NOK (basic), excluding treasury shares		1.11			0.89			2.04			2.58			3.22
Net income per share in NOK (diluted), excluding treasury shares		1.11			0.89			2.04			2.58			3.22

BALANCE SHEET


Telenor group	30/06/2005		31.03.2005		30.06.2004		31.12.2004
(NOK in millions)

Deferred tax assets		2,115		2,893		2,471		3,520
Goodwill		12,816		13,378		16,206		13,355
Intangible assets		10,229		10,809		10,992		11,076
Tangible assets		39,292		38,952		37,311		37,543
Associated companies		7,832		6,980		6,916		6,602
Other financial assets		3,505		2,796		2,429		1,250

Total fixed assets		75,789		75,808		76,325		73,346


Accounts receivable		6,523		6,078		7,036		6,104
Other current assets		7,229		7,050		6,189		6,713
Liquid assets		10,900		8,187		5,465		5,398

Total current assets		24,652		21,315		18,690		18,215

Total assets		100,441		97,123		95,015		91,561


Shareholders equity		39,880		41,507		39,964		39,693
Minority interests		4,630		4,289		4,076		3,946

Total equity and minority interests		44,510		45,796		44,040		43,639


Pension obligations		2,302		2,458		2,131		2,313
Deferred tax liabilities		2,050		2,132		1,789		2,292
Other provisions		864		865		885		891

Provisions		5,216		5,455		4,805		5,496


Long-term interest-bearing liabilities		22,359		21,492		22,837		20,602
Long-term non-interest-bearing liabilities		556		572		706		573

Total long-term liabilities		22,915		22,064		23,543		21,175


Short-term interest-bearing liabilities		7,269		3,681		4,602		3,991
Accounts payable		4,471		4,900		3,744		3,806
Short-term non-interest-bearing liabilities		16,060		15,227		14,281		13,454

Total short-term liabilities		27,800		23,808		22,627		21,251

Total equity and liabilities		100,441		97,123		95,015		91,561


USGAAP
Shareholders equity		42,670		43,930		42,410		42,430

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Attributable to equity holders of the parent company


										Cumulative
	Total paid			Other			Retained			translation						Minority
(NOK in millions)	capital			reserves			earnings			differences			Total			interest			Total equity

Balance as of 1 January 2004 - Restated according to IFRS		29,311			(732	)		9,071			—			37,650			3,420			41,070
Translation differences		—			—			—			(768	)		(768	)		(419	)		(1,187	)
Business combinations and increased ownership interests in subsidiaries		—			618			—			—			618			—			618
Equity adjustments in associated companies		—			62			—			—			62			—			62
Tax on items taken directly to or transferred from equity		—			—			—			163			163			—			163
Net income recognized directly in equity		—			680			—			(605	)		75			(419	)		(344	)

Profit for the year 2004		—			—			5,677			—			5,677			1,320			6,997
Total recognized income and expense for the period		—			680			5,677			(605	)		5,752			901			6,653

Dividends		—			—			(1,764	)		—			(1,764	)		(373	)		(2,137	)
Share buy back		(2,020	)		—			—			—			(2,020	)		—			(2,020	)
Sale of shares, share issue, and share options to employees		59			16			—			—			75			3			78
Transactions with shareholders in subsidiaries		—			—			—			—			—			(5	)		(5	)
Balance as of 31 December 2004		27,350			(36	)		12,984			(605	)		39,693			3,946			43,639

Total changes in accounting policy (IAS 39)		—			661			(208	)		—			453			8			461
Adjusted equity as of 1 January 2005		27,350			625			12,776			(605	)		40,146			3,954			44,100

Translation differences		—			—			—			(540	)		(540	)		303			(237	)
Available-for-sale investments:
- Valuation gains (losses) taken to equity		—			1,336			—			—			1,336			—			1,336
- Transferred to profit or loss on sale		—			(371	)		—			—			(371	)		(8	)		(379	)
Cash flow hedges:
- Valuation gains (losses) taken to equity		—			(161	)		—			—			(161	)		—			(161	)
- Transferred to profit or loss for the period		—			(13	)		—			—			(13	)		—			(13	)
Tax on items taken directly to or transferred from equity		—			142			—			—			142			—			142
Net income (loss) recognized directly in equity		—			933			—			(540	)		393			295			688

Profit for the period		—			—			3,751			—			3,751			547			4,298
Total recognized income and expenses for the period		27,350			1,558			16,527			(1,145	)		44,290			4,796			49,086

Dividends		—			—			(2,595	)		—			(2,595	)		(169	)		(2,764	)
Share buy back		(1,842	)		—			—			—			(1,842	)		—			(1,842	)
Sale of shares, share issue, and share options to employees		24			3			—			—			27			2			29
Transactions with shareholders in subsidiaries		—			—			—			—			—			1			1
Balance as of 30 June 2005		25,532			1,561			13,932			(1,145	)		39,880			4,630			44,510

Attributable to equity holders of the parent company


									Cumulative
	Total paid			Other			Retained		translation					Minority
(NOK in millions)	capital			reserves			earnings		differences		Total			interest			Total equity

Balance as of 1 January 2004 - Restated according to IFRS		29,311			(732	)		9,071		—		37,650			3,420			41,070
Translation differences		—			—			—		453		453			101			554
Business combinations and increased ownership interests in subsidiaries		—			622			—		—		622			—			622
Net income recognized directly in equity		—			622			—		453		1,075			101			1,176

Profit for the period		—			—			4,840		—		4,840			655			5,495
Total recognized income and expenses for the period		—			622			4,840		453		5,915			756			6,671

Share buy back		(1,869	)		—			—		—		(1,869	)		—			(1,869	)
Dividends					(1,764	)						(1,764	)					(1,764	)
Sale of shares, share issue, and share options to employees		23			9			—		—		32			—			32
Transactions with shareholders in subsidiaries		—			—			—		—		—			(100	)		(100	)
Balance as of 30 June 2004		27,465			(1,865	)		13,911		453		39,964			4,076			44,040


CASH FLOW STATEMENT

Telenor group	2nd quarter				1st half-year				Year
(NOK in millions)	2005		2004		2005		2004		2004

Profit before taxes and minority interests	3,325		2,983		6,140		8,016		9,296
Taxes paid	(203	)	(404	)	(434	)	(572	)	(1,516	)
Net (gains) losses, including write-downs and change in fair value of financial items	(118	)	(349	)	(584	)	(2,967	)	(3,161	)
Depreciation, amortization and write-downs	2,771		2,708		5,452		5,219		14,168
Associated companies	(494	)	(290	)	(733	)	(515	)	(986	)
Difference between expensed and paid pensions	(127	)	23		42		136		267
Currency (gains) losses not related to operating activities	(187	)	(6	)	(162	)	29		57
Change in other accruals	(449	)	(290	)	4		(536	)	866
Net cash flow from operating activities	4,518		4,375		9,725		8,810		18,991


Payments on purchase of tangible and intangible assets	(3,267	)	(3,340	)	(5,538	)	(4,891	)	(11,613	)
Payments on purchase of subsidiaries and associated companies, net of cash received	(106	)	(286	)	(109	)	(4,710	)	(6,281	)
Proceeds from sale of tangible and intangible assets and businesses, net of cash transferred	682		267		741		478		1,112
Proceeds from sale of and payments for other investments	310		52		1,078		3,129		3,751
Net cash flow from investment activities	(2,381	)	(3,307	)	(3,828	)	(5,994	)	(13,031	)


Proceeds from and payments of interest-bearing liabilities	3,421		(2,269	)	2,735		(2,546	)	(4,311	)
Issuance of shares and repayment of equity	2		15		24		22		33
Share buy back	(328	)	(495	)	(657	)	(1,115	)	(2,020	)
Dividends paid to minority interests	(184	)	(1	)	(209	)	(1	)	(193	)
Dividends paid to Telenor’s shareholders	(2,460	)	(1,691	)	(2,460	)	(1,691	)	(1,764	)
Net cash flow from financing activities	451		(4,441	)	(567	)	(5,331	)	(8,255	)


Effect on cash and cash equivalents of changes in foreign exchange rates	83		(38	)	130		37		(268	)
Net change in cash and cash equivalents	2,671		(3,411	)	5,460		(2,478	)	(2,563	)

Cash and cash equivalents at the beginning of the period	7,870		8,577		5,081		7,644		7,644
Cash and cash equivalents at the end of the period	10,541		5,166		10,541		5,166		5,081


ANALYTICAL INFORMATION		2003							2004									2005
	Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4			Q1		Q2

Revenues (NOK in millions)		—		—		—		—		14,245		15,226		15,608		15,622			15,270		16,542
EBITDA (NOK in millions)		—		—		—		—		5,048		5,698		5,655		4,556			5,106		5,630
Operating profit (loss) (NOK in millions)		—		—		—		—		2,537		2,990		2,895		(1,633	)		2,425		2,859
Profit (loss) before taxes and minority interests (NOK in millions)		—		—		—		—		5,033		2,983		2,988		(1,708	)		2,815		3,325
Equity ratio including minority interests (%)		—		—		—		—		46.8		46.3		48.8		47.7			47.2		44.3
Net interest-bearing liabilities (NOK in millions)		26,139		25,317		21,584		17,817		19,297		21,973		20,596		19,195			15,933		17,814
Net interest-bearing liabilities/EBITDA excluding gains and losses last 12 months		1.8		1.6		1.3		1.0		1.0		1.1		1.0		0.9			0.8		0.9
Capex (NOK in millions)		1,230		1,314		1,460		2,450		1,471		4,012		3,140		4,122			3,360		2,923
Investments in businesses (NOK in millions)		23		268		9		263		3,749		294		644		1,122			50		264
No. of man-years		21,200		21,150		20,300		19,450		20,600		20,200		20,700		20,900			21,900		22,400
- of which outside Norway		8,700		8,700		8,100		7,450		8,650		8,750		9,450		9,500			10,600		11,100

*MOBILE )**
Telenor Mobil - Norway
No. of mobile subscriptions (NMT + GSM) (in thousands)		2,342		2,330		2,364		2,364		2,378		2,451		2,562		2,645			2,635		2,687
No. of GSM subscriptions (in thousands)		2,294		2,285		2,324		2,327		2,346		2,422		2,536		2,623			2,635		2,687
- of which prepaid (in thousands)		1,093		1,091		1,120		1,099		1,091		1,118		1,178		1,228			1,218		1,267
Average traffic minutes per subscription per month (AMPU) in the quarter		168		179		182		176		179		187		187		182			175		191
Average revenue per subscription per month (ARPU) in the quarter		317		330		335		310		315		332		328		318			297		308
- of which contract		459		476		489		452		464		491		499		491			453		465
- of which prepaid		158		166		167		155		147		146		129		119			117		129
No. of SMS/MMS and content messages (in millions)		566		594		619		630		611		656		726		792			818		838
Sonofon - Denmark
No. of mobile subscriptions (in thousands)		—		—		—		—		987		1,203		1,253		1,275			1,232		1,250
- of which prepaid (in thousands)		—		—		—		—		250		451		485		462			413		420
Average traffic minutes per subscription per month (AMPU) in the quarter		—		—		—		—		147		157		139		151			153		182
Average revenue per subscription per month (ARPU) in the quarter		—		—		—		—		250		233		219		207			229		253
- of which contract		—		—		—		—		287		291		281		267			284		306
- of which prepaid		—		—		—		—		135		111		120		111			126		146
No. of SMS/MMS and content messages (in millions)		—		—		—		—		479		545		588		687			722		716
Telenor Mobile Sweden
No. of mobile subscriptions (in thousands)		52		59		65		81		84		92		96		105			107		99
- of which prepaid (in thousands)		26		23		28		44		48		55		56		57			56		51
Average traffic minutes per subscription per month (AMPU) in the quarter		28		38		49		69		73		96		104		108			113		141
Average revenue per subscription per month (ARPU) in the quarter		120		155		172		175		169		181		182		169			164		167
- of which contract		195		239		252		248		252		262		265		241			215		216
- of which prepaid		45		49		56		103		106		122		125		117			121		121
Kyivstar - Ukraine
No. of mobile subscriptions (100% in thousands)		2,012		2,205		2,512		3,037		3,221		3,610		4,856		6,252			7,662		9,335
- of which prepaid (100% in thousands)		1,614		1,768		2,037		2,503		2,675		3,031		4,211		5,532			6,892		8,500
Average traffic minutes per subscription per month (AMPU) in the quarter		42		51		57		72		68		74		95		95			91		90
Average revenue per subscription per month (ARPU) in the quarter		77		87		98		93		84		93		95		68			53		62
- of which contract		168		176		203		200		191		213		223		184			165		187
- of which prepaid		55		65		73		70		62		69		72		52			40		49
Pannon - Hungary
No. of mobile subscriptions (in thousands)		2,514		2,514		2,564		2,618		2,596		2,588		2,595		2,770			2,792		2,824
- of which prepaid (in thousands)		1,989		1,981		2,019		2,023		1,977		1,935		1,886		1,991			1,955		1,915
Average traffic minutes per subscription per month (AMPU) in the quarter		104		110		113		116		111		121		127		131			125		143
Average revenue per subscription per month (ARPU) in the quarter		151		161		165		170		165		170		184		171			157		162
- of which contract		388		414		416		412		399		389		400		356			327		316
- of which prepaid		86		92		97		99		92		96		103		96			84		89
DiGi.Com - Malaysia
No. of mobile subscriptions (100% in thousands)		1,802		1,944		2,053		2,205		2,413		2,583		2,804		3,239			3,461		3,765
- of which prepaid (100% in thousands)		1,709		1,850		1,953		2,101		2,301		2,453		2,653		3,067			3,259		3,525
Average traffic minutes per subscription per month (AMPU) in the quarter		174		173		177		175		167		164		170		165			163		170
Average revenue per subscription per month (ARPU) in the quarter		121		110		115		115		113		107		110		98			92		99
- of which contract		294		309		326		318		312		312		297		238			233		216
- of which prepaid		111		99		105		105		104		97		100		90			84		93
GrameenPhone - Bangladesh
No. of mobile subscriptions (100% in thousands)		835		928		1,047		1,141		1,520		1,795		2,024		2,388			2,928		3,704
- of which prepaid (100% in thousands)		631		725		820		899		1,258		1,501		1,730		2,092			2,625		3,375
Average traffic minutes per subscription per month (AMPU) in the quarter		221		225		233		230		239		246		249		241			237		223
Average revenue per subscription per month (ARPU) in the quarter		133		132		141		128		120		106		103		87			81		69
- of which contract		274		282		332		319		331		287		302		257			288		284
- of which prepaid		86		87		88		76		71		69		67		60			54		47
Telenor Pakistan
No. of mobile subscriptions (in thousands)		—		—		—		—		—		—		—		—			344		836
ProMonte GSM - Montenegro
No. of mobile subscriptions (in thousands)		—		—		—		—		—		—		340		279			279		303
- of which prepaid (in thousands)		—		—		—		—		—		—		297		234			235		263
Average traffic minutes per subscription per month (AMPU) in the quarter		—		—		—		—		—		—		113		87			91		105
Average revenue per subscription per month (ARPU) in the quarter		—		—		—		—		—		—		139		107			115		129
- of which contract		—		—		—		—		—		—		309		284			288		338
- of which prepaid		—		—		—		—		—		—		111		79			82		97
Associated companies
No. of mobile subscriptions (100% in thousands)		17,158		15,105		17,035		19,478		21,028		24,594		28,662		33,763			38,645		42,328

FIXED - Norway
Retail market
No. of PSTN subscriptions (in thousands)		1,449		1,427		1,381		1,308		1,248		1,219		1,196		1,182			1,165		1,139
No. of ISDN subscriptions (lines in thousands)		1,816		1,800		1,755		1,682		1,600		1,548		1,498		1,449			1,394		1,335
PSTN/ISDN generated traffic (mill. minutes)		4,268		3,876		3,454		3,787		3,725		3,279		2,851		3,171			2,848		2,644
Market share of PSTN/ISDN generated traffic (%)		68		68		68		68		67		68		67		67			67		67
No. of Online subscriptions residential market (in thousands)		315		304		301		294		286		276		263		241			215		197
No. of ADSL subscriptions residential market (in thousands)		114		124		139		163		191		214		245		286			339		364
No. of ADSL subscriptions business market Norway (in thousands)		7		10		11		14		17		21		25		40			46		51
Wholesale market
No. of PSTN subscriptions (in thousands)		11		12		42		104		151		170		180		188			192		200
No. of ISDN subscriptions (lines in thousands)		14		17		52		126		188		215		234		250			256		259
No. of ADSL subscriptions (in thousands)		21		31		41		56		76		86		90		91			77		87
No. of LLUB (in thousands)		53		59		68		80		96		108		123		145			172		192

BROADCAST
No. of television subscribers in the Nordic region
- DTH pay-TV subscribers (in thousands)		713		708		726		763		778		782		800		824			851		853
- Cable TV subscribers (in thousands)		575		590		594		604		605		611		614		624			616		619
- Households in small antenna TV-networks (in thousands)		1,130		1,049		1,100		1,098		1,132		1,161		1,190		1,212			1,197		1,205
- Cable TV Internet access (in thousands)		24		26		28		31		34		35		38		44			48		50

*) ARPU for 2003 has not been restated to comply with IFRS


																																		Profit (loss)
																																		before taxes
THE OPERATIONS SECOND QUARTER	Total																	Operating profit						Associated				Net financial						and minority
	revenues						of which external					EBITDA						(loss)						companies				items						interests
(NOK in millions)	2005			2004			2005			2004		2005			2004			2005			2004			2005		2004		2005			2004			2005			2004

Telenor Mobil — Norway		3,049			2,954			2,736			2,639		1,066			1,081			824			805			8		1		17			24			849			830
Sonofon — Denmark		1,308			1,225			1,273			1,217		308			238			(20	)		(117	)		—		—		(39	)		(45	)		(59	)		(162	)
Kyivstar — Ukraine		1,643			981			1,641			981		911			592			580			464			—		—		62			(34	)		642			430
Pannon GSM — Hungary		1,498			1,444			1,496			1,442		484			556			206			230			—		—		20			4			226			234
DiGi.Com — Malaysia		1,161			958			1,161			957		499			410			246			184			—		—		(8	)		(31	)		238			153
GrameenPhone — Bangladesh		705			529			705			529		334			309			245			258			—		—		(9	)		(4	)		236			254
Other mobile operations		236			55			196			34		(130	)		(49	)		(232	)		(56	)		430		223		4			(4	)		202			163
Fixed		4,753			4,877			4,231			4,420		1,504			1,631			773			734			14		23		(105	)		(121	)		682			636
Broadcast		1,401			1,335			1,366			1,302		411			392			274			218			35		6		(35	)		(128	)		274			96
Other operations		2,542			2,413			1,739			1,703		232			509			(30	)		248			6		32		145			—			121			280
Eliminations		(1,754	)		(1,545	)		(2	)		2		11			29			(7	)		22			1		5		(80	)		42			(86	)		69

Total		16,542			15,226			16,542			15,226		5,630			5,698			2,859			2,990			494		290		(28	)		(297	)		3,325			2,983


																																				Profit (loss)
																																				before taxes
THE OPERATIONS FIRST HALF-YEAR	Total																	Operating profit						Associated						Net financial						and minority
	revenues						of which external					EBITDA						(loss)						companies						items						interests
(NOK in millions)	2005			2004			2005			2004		2005			2004			2005			2004			2005			2004			2005			2004			2005			2004

Telenor Mobil — Norway		5,887			5,758			5,296			5,132		2,067			2,083			1,614			1,568			9			2			35			36			1,658			1,606
Sonofon — Denmark		2,501			1,895			2,446			1,883		561			405			(120	)		(139	)		—			—			(81	)		(70	)		(201	)		(209	)
Kyivstar — Ukraine		2,806			1,806			2,803			1,806		1,543			1,097			981			844			—			—			(33	)		(69	)		948			775
Pannon GSM — Hungary		2,913			2,845			2,909			2,842		1,001			1,112			407			455			—			—			39			1			446			456
DiGi.Com — Malaysia		2,195			1,894			2,194			1,892		950			836			439			381			—			—			(36	)		(59	)		403			322
GrameenPhone — Bangladesh		1,345			1,018			1,345			1,018		663			592			497			507			—			—			(16	)		1			481			508
Other mobile operations		404			101			336			66		(218	)		(74	)		(377	)		(89	)		689			447			18			(11	)		330			347
Fixed		9,324			9,800			8,341			8,911		2,912			3,263			1,420			1,412			24			41			(213	)		(292	)		1,231			1,161
Broadcast		2,791			2,641			2,728			2,573		791			741			510			380			47			24			268			(266	)		825			138
Other operations		5,009			4,783			3,418			3,339		474			690			(38	)		194			(37	)		(1	)		264			2,907			189			3,100
Eliminations		(3,363	)		(3,070	)		(4	)		9		(8	)		1			(49	)		14			1			2			(122	)		(204	)		(170	)		(188	)

Total		31,812			29,471			31,812			29,471		10,736			10,746			5,284			5,527			733			515			123			1,974			6,140			8,016