Edgar Filing: TELENOR ASA

e6vk

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: 26^th October, 2006, for 3^rd 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


SIGNATURES
TELENOR ASA THIRD QUARTER 2006 RESULTS

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: 26^th October, 2006

TELENOR ASA THIRD QUARTER 2006 RESULTS

In the third quarter of 2006, Telenor`s revenues increased by 35 per cent compared to the third quarter of 2005, reaching NOK 23.9 billion. The underlying revenue growth was 12 per cent. The reported EBITDA was NOK 9.1 billion while profit before taxes was NOK 6.1 billion. During the quarter, the total number of mobile subscriptions increased by nine million, reaching 105 million.

Highlights third quarter 2006:

Revenue growth of 35% — underlying growth of 12% Record high EBITDA margin Improved results in Nordic mobile operations Continued impressive performance in Kyivstar Telenor Serbia consolidated from 1 September

Outlook for 2006:

Based upon the strong results and positive development in the third quarter of 2006, the outlook for the full year has been adjusted compared to the report for the second quarter of 2006.

The strong growth in mobile subscriptions gives Telenor a solid foundation for further growth in revenues. We expect a growth in reported revenues of around 35%.

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 around 36%.

We expect high capital expenditure to continue, and capital expenditure as a proportion of revenues is expected to be around 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.

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		2120		2 023		2 170		2 264
Interconnection revenues		378		402		403		430		407		452		441		454		446		474		443
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		2 707

Other mobile revenues		304		405		434		370		362		453		484		526		532		505		624
Total mobile revenues		2 528		2 775		2 881		2 821		2 696		2 908		3 023		3 100		3 001		3 149		3 331

Non-mobile revenues		276		179		128		142		142		141		98		135		104		124		127

Total revenues ¹⁾		2 804		2 954		3 009		2 963		2 838		3 049		3 121		3 235		3 105		3 273		3 458

¹⁾ Of which internal revenues		311		315		311		289		278		313		299		281		266		257		221

EBITDA		1 002		1 081		1 103		1 119		1 001		1 066		1 218		1 186		1 323		1 365		1 513
Depreciation and amortization ¹⁾		239		275		267		281		213		230		224		222		216		215		206
Write-downs ²⁾		—		1		3		11		-2		12		4		2		—		33		—

Operating profit		763		805		833		827		790		824		990		962		1 107		1 117		1 307

¹⁾ Of which amortization of Telenor’s net excess values		—		—		—		1		1		1		1		1		1		1		1
²⁾ 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		43.8
Operating profit/Total revenues (%)		27.2		27.3		27.7		27.9		27.8		27.0		31.7		29.7		35.7		34.1		37.8
Capex		214		255		332		172		194		343		220		461		129		143		220
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		2 711
— of which prepaid		1 091		1 118		1 178		1 228		1 218		1 267		1 285		1 222		1 185		1 133		1 097
Average traffic minutes per subscription per month (AMPU) in the quarter		179		187		187		182		175		191		186		184		186		196		199
Average revenue per subscription per month (ARPU) in the quarter		315		332		328		318		297		308		314		317		305		324		331
— of which contract		464		491		499		491		453		465		475		472		446		461		469
— of which prepaid		147		146		129		119		117		129		133		136		126		141		134

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		693
Interconnection revenues		140			280			274			292			300			328			325			347		348		338		327
Mobile revenues company’s subscriptions		414			776			815			794			871			923			925			942		970		968		1 020

Other mobile revenues		97			161			170			143			143			158			181			156		145		152		169
Total mobile revenues		511			937			985			937			1 014			1 081			1 106			1 098		1 115		1 120		1 189

Non-mobile revenues		159			288			281			306			179			227			250			236		238		227		239

Total revenues ¹⁾		670			1 225			1 266			1 243			1 193			1 308			1 356			1334		1 353		1 347		1 428

¹⁾ Of which internal revenues		4			8			21			20			20			35			43			34		30		48		55

EBITDA		167			238			260			16			253			308			307			308		305		307		390
Depreciation and amortization ¹⁾		189			355			369			277			353			328			308			296		286		271		280
Write-downs ²⁾		—			—			—			3 290			—			—			—			—		—		—		—

Operating profit / (loss)		(22	)		(117	)		(109	)		(3,551	)		(100	)		(20	)		(1	)		12		19		36		110

¹⁾ Of which amortization of Telenor’s net excess values		75			160			160			156			157			134			131			133		137		132		138
²⁾ Of which write-downs of Telenor’s net excess values		—			—			—			3075			—			—			—			—		—		—		—

EBITDA/Total revenues (%)		24.9			19.4			20.5			1.3			21.2			23.5			22.6			23.1		22.5		22.8		27.3
Operating profit/Total revenues (%)	nm			nm			nm			nm			nm			nm			nm				0.9		1.4		2.7		7.7
Capex		66			144			102			76			28			140			137			757		109		170		168
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		1 342
— of which prepaid		250			451			485			462			413			420			420			425		429		436		464
Average traffic minutes per subscription per month (AMPU) in the quarter		147			157			139			151			153			182			183			195		200		209		203
Average revenue per subscription per month (ARPU) in the quarter		250			233			219			207			229			253			243			246		250		248		257
— of which contract		287			291			281			267			284			306			292			285		292		290		306
— of which prepaid		135			111			120			111			126			146			146			166		164		163		161

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			1 050
Interconnection revenues		9			15			13			15			15			18			15			12			206			235			219
Mobile revenues company’s subscriptions		41			49			50			53			52			51			49			38			1 108			1 207			1 269

Other mobile revenues		5			6			11			8			11			14			19			10			89			96			133
Total mobile revenues		46			55			61			61			63			65			68			48			1 197			1 303			1 402

Non-mobile revenues		—			—			—			—			—			—			—			—			104			127			148

Total revenues ¹⁾		46			55			61			61			63			65			68			48			1 301			1 430			1 550

¹⁾ Of which internal revenues		14			21			27			25			28			33			39			24			48			27			42

EBITDA		(25	)		(36	)		(45	)		(619	)		(10	)		(18	)		(139	)		(309	)		170			241			371
Depreciation and amortization ¹⁾		8			7			8			26			—			—			—			—			358			395			435
Write-downs ²⁾		—			—			—			75			—			—			—			—			—			—			6

Operating profit / (loss)		(33	)		(43	)		(53	)		(720	)		(10	)		(18	)		(139	)		(309	)		(188	)		(154	)		(70	)

¹⁾ Of which amortization of Telenor’s net excess values		—			—			—			—			—			—			—			—			52			64			260
²⁾ 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			23.9
Operating profit/Total revenues (%)	nm			nm			nm			nm			nm			nm			nm			nm			nm			nm			nm
Capex		4			4			3			6			—			—			—			—			135			137			112
Investments in businesses		—			—			—			—			—			—			—			—			7739			8			—


No. of mobile subscriptions (in thousands)		84			92			96			105			107			99			97			95			1 660			1 676			1 708
— of which prepaid		48			55			56			57			56			51			50			48			575			571			571
Average traffic minutes per subscription per month (AMPU) in the quarter		73			96			104			108			113			141			144			129			160			185			184
Average revenue per subscription per month (ARPU) in the quarter		169			181			182			169			164			167			164			136			229			242			249
— of which contract		252			262			265			241			215			216			215			183			330			340			346
— of which prepaid		106			122			125			117			121			121			115			90			49			54			58

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		2 321
Interconnection revenues		186		236		319		327		313		428		541		606		528		562		606
Mobile revenues company’s subscriptions		796		939		1 157		1 137		1 120		1 586		1 978		2 326		2 277		2 514		2 927

Other mobile revenues		16		27		54		25		23		30		72		33		36		50		82
Total mobile revenues		812		966		1 211		1 162		1 143		1 616		2 050		2 359		2 313		2 564		3 009

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

Total revenues ¹⁾		825		981		1 229		1 184		1 163		1 643		2 076		2 390		2 329		2 580		3 025

¹⁾ Of which internal revenues		—		—		1		1		1		2		2		1		—		1		5

EBITDA		505		592		772		712		632		911		1 148		1 359		1 432		1 596		1 827
Depreciation and amortization ¹⁾		125		128		145		157		231		331		322		325		379		381		395
Write-downs ²⁾		—		—		—		—		—		—		—		15		—		—		13

Operating profit		380		464		627		555		401		580		826		1 019		1 053		1 215		1 419

¹⁾ Of which amortization of Telenor’s net excess values		24		24		24		21		22		23		24		24		24		23		23
²⁾ 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		60.4
Operating profit/Total revenues (%)		46.1		47.3		51.0		46.9		34.5		35.3		39.8		42.6		45.2		47.1		46.9
Capex		331		566		687		1024		735		919		1 106		890		830		770		992
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		17 709
- of which prepaid		2675		3 031		4 211		5 532		6 892		8 500		10 021		12 901		13 895		14 886		16 535
Average traffic minutes per subscription per month (AMPU) in the quarter		68		74		95		95		91		90		103		108		110		118		123
Average revenue per subscription per month (ARPU) in the quarter		84		93		95		68		53		62		66		64		53		54		57
- of which contract		191		213		223		184		165		187		200		197		175		180		197
- of which prepaid		62		69		72		52		40		49		53		53		43		45		47

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		940
Interconnection revenues		423		443		423		442		430		458		416		431		400		400		415
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		1 355

Other mobile revenues		25		39		46		32		28		44		52		20		23		35		45
Total mobile revenues		1 320		1 354		1 474		1 394		1 338		1 405		1 493		1 411		1 349		1 348		1 400

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

Total revenues ¹⁾		1 401		1 444		1 552		1 510		1 415		1 498		1 583		1 565		1 413		1 427		1 464

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

EBITDA		556		556		561		420		517		484		650		534		540		567		581
Depreciation and amortization ¹⁾		331		326		326		312		316		276		294		285		279		254		251
Write-downs ²⁾		—		—		—		21		—		2		1		4		—		33		—

Operating profit		225		230		235		87		201		206		355		245		261		280		330

¹⁾ Of which amortization of Telenor’s net excess values		89		89		91		89		90		85		86		84		84		79		79
²⁾ 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		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		22.5
Capex		104		121		121		820		109		243		150		261		71		235		168
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		2 981
- of which prepaid		1 977		1 935		1 886		1 991		1 955		1 915		1 894		1 904		1 878		1 854		1 848
Average traffic minutes per subscription per month (AMPU) in the quarter		111		121		127		131		125		143		145		149		143		159		157
Average revenue per subscription per month (ARPU) in the quarter		165		170		184		171		157		162		166		162		150		148		150
- of which contract		399		389		400		356		327		316		314		299		272		254		248
- of which prepaid		92		96		103		96		84		89		89		86		80		86		87

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		211
EBITDA		—		—		45		46			55		60		98		47		55		65		122
Operating profit ¹⁾²⁾		—		—		26		(2	)		12		18		58		7		16		27		84
¹⁾ Of which amortization of Telenor’s net excess values		—		—		7		25			20		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		24


No. of mobile subscriptions (in thousands)		—		—		340		279			279		303		394		310		324		363		479
- of which prepaid		—		—		297		234			235		263		352		265		276		309		424
Average traffic minutes per subscription per month (AMPU) in the quarter		—		—		113		87			91		105		109		92		104		121		120
Average revenue per subscription per month (ARPU) in the quarter		—		—		139		107			115		129		126		95		111		120		125
- of which contract		—		—		309		284			288		338		339		269		284		297		303
- of which prepaid		—		—		111		79			82		97		103		71		81		90		100

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		1 887
Interconnection revenues		—		—		—		—		—		—		—		25		33		33		41
Mobile revenues company’s subscriptions		—		—		—		—		—		—		—		1 099		1 885		1 793		1 928

Other mobile revenues		—		—		—		—		—		—		—		74		131		85		93
Total mobile revenues		—		—		—		—		—		—		—		1 173		2 016		1 878		2 021

Non-mobile revenues		—		—		—		—		—		—		—		18		16		15		20

Total revenues ¹⁾		—		—		—		—		—		—		—		1 191		2 032		1 893		2 041

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

EBITDA		—		—		—		—		—		—		—		445		719		698		732
Depreciation and amortization ¹⁾		—		—		—		—		—		—		—		220		337		335		356
Write-downs ²⁾		—		—		—		—		—		—		—		—		—		—		—

Operating profit		—		—		—		—		—		—		—		225		382		363		376

¹⁾ Of which amortization of Telenor’s net excess values		—		—		—		—		—		—		—		35		51		50		51
²⁾ Of which write-downs of Telenor’s net excess values		—		—		—		—		—		—		—		—		—		—		—

EBITDA/Total revenues (%)		—		—		—		—		—		—		—		37.4		35.4		36.9		35.9
Operating profit/Total revenues (%)		—		—		—		—		—		—		—		18.9		18.8		19.2		18.4
Capex		—		—		—		—		—		—		—		146		605		543		565
Investments in businesses		—		—		—		—		—		—		—		2 664		85		31		—


No. of mobile subscriptions (100% in thousands)		—		—		—		—		—		—		—		8 677		9 823		10 622		11 241
- of which prepaid		—		—		—		—		—		—		—		7 212		8 185		8 806		9 274
Average traffic minutes per subscription per month (AMPU) in the quarter		—		—		—		—		—		—		—		231		295		327		314
Average revenue per subscription per month (ARPU) in the quarter		—		—		—		—		—		—		—		66		69		59		58
- of which contract		—		—		—		—		—		—		—		141		150		126		123
- of which prepaid		—		—		—		—		—		—		—		51		53		45		44

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		1 355
Interconnection revenues		147		137		144		143		137		143		155		159		166		127		138
Mobile revenues company’s subscriptions		789		799		895		882		929		1 067		1 190		1 357		1 445		1 458		1 493

Other mobile revenues		17		18		17		13		14		15		18		18		21		20		33
Total mobile revenues		806		817		912		895		943		1 082		1 208		1 375		1 466		1 478		1 526

Non-mobile revenues		130		141		136		109		91		79		77		77		80		66		58

Total revenues ¹⁾		936		958		1 048		1 004		1 034		1 161		1 285		1 452		1 546		1 544		1 584

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

EBITDA		426		410		453		443		451		499		560		632		700		700		721
Depreciation and amortization ¹⁾		229		226		231		215		257		253		255		273		252		227		296
Write-downs ²⁾		—		—		—		—		1		—		1		3		—		7		1

Operating profit		197		184		222		228		193		246		304		356		448		466		424

¹⁾ Of which amortization of Telenor’s net excess values		19		18		18		17		17		17		13		4		4		4		3
²⁾ 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		45.5
Operating profit/Total revenues (%)		21.0		19.2		21.2		22.7		18.7		21.2		23.7		24.5		29.0		30.2		26.8
Capex		103		162		228		427		108		178		310		574		226		199		371
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		5 590
- of which prepaid		2 301		2 453		2 653		3 067		3 259		3 525		3 880		4 441		4 704		5 018		5 126
Average traffic minutes per subscription per month (AMPU) in the quarter		167		164		170		165		163		170		175		169		162		163		162
Average revenue per subscription per month (ARPU) in the quarter		113		107		110		98		92		99		100		102		97		93		90
- of which contract		312		312		297		238		233		216		192		174		172		180		163
- of which prepaid		104		97		100		90		84		93		93		97		92		86		84

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		1 032
Interconnection revenues		9		20		26		35		34		39		52		63		73		78		94
Mobile revenues company’s subscriptions		479		520		591		564		632		698		767		832		944		989		1 126

Other mobile revenues		7		6		5		6		5		5		6		6		6		5		3
Total mobile revenues		486		526		596		570		637		703		773		838		950		994		1 129

Non-mobile revenues		3		3		2		—		3		2		2		12		5		3		4

Total revenues ¹⁾		489		529		598		570		640		705		775		850		955		997		1 133

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

EBITDA		283		309		383		338		329		334		441		455		659		488		645
Depreciation and amortization ¹⁾		34		51		58		72		77		89		107		166		159		148		169
Write-downs ²⁾		—		—		—		3		—		—		—		—		—		—		—

Operating profit		249		258		325		263		252		245		334		289		500		340		476

¹⁾ Of which amortization of Telenor’s net excess values		—		—		—		—		—		—		—		—		—		—		—
²⁾ 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		56.9
Operating profit/Total revenues (%)		50.9		48.8		54.3		46.1		39.4		34.8		43.1		34.0		52.4		34.1		42.0
Capex		160		258		418		482		496		357		590		1 153		389		516		435
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		9 404
- of which prepaid		1 258		1 501		1 730		2 092		2 625		3 375		3 860		5 159		6 030		8 015		8 904
Average traffic minutes per subscription per month (AMPU) in the quarter		239		246		249		241		237		223		223		250		196		213		214
Average revenue per subscription per month (ARPU) in the quarter		120		106		103		87		81		69		65		56		51		45		41
- of which contract		331		287		302		257		288		284		282		258		258		234		220
- of which prepaid		71		69		67		60		54		47		45		39		37		33		31

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			333
EBITDA		—		(13	)		(20	)		(45	)		(133	)		(172	)		(134	)		(133	)		(77	)		(117	)		(87	)
Operating profit / (loss) ¹⁾²⁾		—		(13	)		(20	)		(45	)		(147	)		(232	)		(201	)		(218	)		(175	)		(220	)		(199	)
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			701


No. of mobile subscriptions (in thousands)		—		—			—			—			344			836			1,200			1,868			2,527			3,205			4,597
- of which prepaid		—		—			—			—			342			829			1,183			1,836			2,495			3,165			4,555
Average traffic minutes per subscription per month (AMPU) in the quarter		—		—			—			—			—			74			93			131			136			146			123
Average revenue per subscription per month (ARPU) in the quarter		—		—			—			—			—			22			25			30			32			30			27
- of which contract		—		—			—			—			—			154			99			72			59			59			51
- of which prepaid		—		—			—			—			—			21			24			29			31			30			27

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			3,796
Other operations		469			474			419			467			436			418			840			887			919			1,047			1,056
Eliminations		(29	)		(24	)		(26	)		(39	)		(28	)		(32	)		(27	)		(48	)		(30	)		(31	)		(11	)

Total revenues ¹⁾		4,923			4,877			4,675			4,781			4,571			4,753			4,964			5,025			5,067			4,999			4,841

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			1,671
Depreciation and amortization ¹⁾		954			897			855			867			783			729			874			850			761			733			769
Write-downs ²⁾		—			—			—			40			(22	)		2			(2	)		609			—			15			9

Operating profit		678			734			660			653			647			773			558			84			798			819			893

¹⁾ Of which amortization of Telenor’s net excess values		—			—			1			6			1			2			69			(6	)		33			41			44
²⁾ 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			34.5
Operating profit/Total revenues (%)		13.8			15.1			14.1			13.7			14.2			16.3			11.2			1.7			15.7			16.4			18.4
Capex		378			385			419			609			381			556			602			1,237			617			643			561
Investments in businesses		86			10			—			9			43			1			5,792			(20	)		461			75			2

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		1,501
xDSL/Internet		426		417		444		466		461			508		534			536			568		581		579
Data services		247		267		259		249		232			243		250			238			215		199		204
Other revenues		456		386		428		386		342			400		357			366			357		315		285

Total retail revenues		3,312		3,187		3,090		3,110		2,906			3,018		2,884			2,891			2,843		2,722		2,569

Wholesale revenues		1,171		1,240		1,192		1,243		1,257			1,349		1,267			1,295			1,335		1,261		1,227

Total revenues ¹⁾		4,483		4,427		4,282		4,353		4,163			4,367		4,151			4,186			4,178		3,983		3,796

¹⁾ Of which internal revenues		438		454		428		522		463			522		582			623			545		510		517

EBITDA		1,631		1,606		1,523		1,570		1,438			1,532		1,354			1,377			1,390		1,417		1,460
Depreciation and amortization ¹⁾		880		819		778		774		705			658		652			692			602		561		540
Write-downs ²⁾		—		—		—		2		(22	)		—		(2	)		(1	)		—		13		—

Operating profit		751		787		745		794		755			874		704			686			788		843		920

¹⁾ Of which amortization of Telenor’s net excess values		—		—		1		1		—			—		—			—			—		—		—
²⁾ 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		38.5
Operating profit/Total revenues (%)		16.8		17.8		17.4		18.2		18.1			20.0		17.0			16.4			18.9		21.2		24.2
Capex		355		315		346		457		337			503		412			917			479		371		354
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		1,513
- of which PSTN subscriptions		1,248		1,219		1,196		1,182		1,165			1,139		1,118			1,089			1,054		1,017		991
- of which ISDN subscriptions		684		667		642		618		592			562		538			509			479		454		434
- of which VoIP subscriptions		—		—		—		—		—			4		8			24			44		74		88
No. of xDSL subscriptions (in thousands)		208		235		270		326		385			415		444			475			511		527		542
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		1,721
Wholesale market
No. of Telephony subscriptions (in thousands)		227		266		285		301		309			316		316			314			316		308		296
- of which PSTN subscriptions		151		170		180		188		192			200		202			202			203		201		194
- of which ISDN subscriptions		76		96		105		113		117			116		114			112			113		107		102
No. of xDSL subscriptions (in thousands)		76		86		90		91		77			87		97			109			117		123		130
No. of LLUB (in thousands)		96		108		123		145		172			192		209			235			254		265		276

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			893
Internal revenues		23			26			26			22			25			32			32			26			3			(10	)		(36	)

Tota revenues		426			430			376			422			392			374			654			676			727			866			857


EBITDA		(3	)		24			(9	)		(3	)		(29	)		(27	)		31			183			109			100			128
Depreciation and amortization ¹⁾		61			65			65			71			64			63			165			124			113			115			172
Write-downs ²⁾		—			—			—			36			—			—			—			608			—			2			9

Operating profit / (loss)		(64	)		(41	)		(74	)		(110	)		(93	)		(90	)		(134	)		(549	)		(4	)		(17	)		(53	)

¹⁾ Of which amortization of Telenor’s net excess values		—			—			—			5			1			2			69			(25	)		23			32			35
²⁾ Of which write-downs of Telenor’s net excess values		—			—			—			(24	)		—			—			—			12			—			—			—

EBITDA/Total revenues (%)	nm				5.6		nm			nm			nm			nm				4.7			27.1			15.0			11.5			14.9
Operating profit/Total revenues (%)	nm			nm			nm			nm			nm			nm			nm			nm			nm			nm			nm
Capex		15			72			58			134			40			48			142			255			83			230			155
Investments in businesses		78			9			—			6			—			—			4,479			(27	)		460			75			2


Bredbandsbolaget
No. of xDSL subscriptions (in thousands)		—			—			—			—			—			—			200			214			229			242			264
No. of LAN subscriptions (in thousands)		—			—			—			—			—			—			156			155			156			158			165
No. of VoIP subscriptions (in thousands)		—			—			—			—			—			—			91			104			119			134			147
Glocalnet
No. of xDSL subscriptions (in thousands)		—			—			—			—			—			—			—			—			113			117			119
No. of PSTN subscriptions (in thousands)		—			—			—			—			—			—			—			—			285			284			273

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		197
Internal revenues		—		—		—		—		—		—		—		—		—		1		2

Tota revenues		—		—		—		—		—		—		142		164		174		181		199


EBITDA		—		—		—		—		—		—		48		49		55		59		61
Depreciation and amortization ¹⁾		—		—		—		—		—		—		46		22		43		57		56
Write-downs ²⁾		—		—		—		—		—		—		—		—		—		—		—

Operating profit		—		—		—		—		—		—		2		27		12		2		5

¹⁾ Of which amortization of Telenor’s net excess values		—		—		—		—		—		—		—		19		10		9		9
²⁾ Of which write-downs of Telenor’s net excess values		—		—		—		—		—		—		—		—		—		—		—

EBITDA/Total revenues (%)		—		—		—		—		—		—		33.8		29.9		31.6		32.6		30.7
Operating profit/Total revenues (%)		—		—		—		—		—		—		1.4		16.5		6.9		1.1		2.5
Capex		—		—		—		—		—		—		40		57		55		42		52
Investments in businesses		—		—		—		—		—		—		1,313		7		—		—		—


No. of xDSL subscriptions (in thousands)		—		—		—		—		—		—		109		122		138		152		164
No. of VoIP subscriptions (in thousands)		—		—		—		—		—		—		18		26		37		41		52

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			1,350
Satellite Services		601			616			595			573			589			592			610			637			607			596			632
Venture		217			245			213			226			116			125			123			126			133			146			140
Corporate functions and Group activities		529			552			515			558			582			603			517			564			522			568			507
Other		70			62			28			14			18			9			(1	)		(1	)		—			1			19
Eliminations		(94	)		(106	)		(97	)		(64	)		(69	)		(72	)		(46	)		(46	)		(45	)		(45	)		(43	)

Total revenues ¹⁾		2,370			2,413			2,296			2,461			2,467			2,542			2,420			2,538			2,552			2,715			2,605

¹⁾ Of which internal revenues		734			710			717			768			788			803			647			669			638			657			613

EBITDA
EDB Business Partner		138			456			188			196			177			187			224			197			191			141			39
Satellite Services		125			103			84			97			68			90			115			120			77			88			116
Venture		(3	)		1			62			70			6			(1	)		7			(14	)		(17	)		(4	)		10
Corporate functions and Group activities		(95	)		(75	)		(79	)		(168	)		(6	)		(34	)		67			(104	)		(104	)		(131	)		(63	)
Other/eliminations		16			24			(52	)		26			(3	)		(11	)		11			(5	)		(11	)		(10	)		(19	)

Total EBITDA		181			509			203			221			242			232			423			194			136			84			83

Depreciation and amortization ¹⁾		232			260			240			243			250			262			258			263			243			277			280
Write-downs ²⁾		3			1			37			2			—			—			—			10			—			—			—

Operating profit / (loss)		(54	)		248			(74	)		(24	)		(8	)		(30	)		165			(79	)		(107	)		(193	)		(197	)

Of which
EDB Business Partner		89			396			121			130			81			80			120			96			99			37			(67	)
Satellite Services		55			36			17			25			4			26			48			47			14			25			51
Venture		(14	)		(7	)		55			63			2			(6	)		3			(22	)		(25	)		(13	)		3
Corporate functions and Group activities		(181	)		(182	)		(178	)		(268	)		(92	)		(120	)		(16	)		(192	)		(182	)		(229	)		(161	)
Other/eliminations		(3	)		5			(89	)		26			(3	)		(10	)		10			(8	)		(13	)		(13	)		(23	)

¹⁾ Of which amortization of Telenor’s net excess values		2			2			2			2			2			2			3			1			3			3			4
²⁾ Of which write-downs of Telenor’s net excess values		2			—			—			1			—			—			—			5			—			—			—

Capex		88			241			99			269			125			193			193			321			156			203			291
Investments in businesses		22			441			104			762			7			263			15			47			658			616			301

PROFIT AND LOSS STATEMENTS


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			23,868
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			6,008
Own work capitalized		(124	)		(164	)		(103	)		(166	)		(122	)		(186	)		(141	)		(255	)		(175	)		(123	)		(121	)
Salaries and personnel costs		2,514			2,506			2,212			2,738			2,536			2,562			2,412			2,726			3,075			3,044			2,639
Other operating expenses		3,162			3,398			3,658			3,653			3,775			4,247			4,211			5,373			5,431			5,876			6,045
Other (income) and expenses		20			(169	)		17			(20	)		(21	)		(66	)		220			109			64			27			224
EBITDA		5,048			5,698			5,655			5,134			5,106			5,630			6,378			6,722			7,856			7,930			9,073

Depreciation and amortization		2,508			2,707			2,719			2,703			2,704			2,751			2,902			3,187			3,546			3,543			3,749
Write-downs		3			1			41			3,486			(23	)		20			4			586			3			88			29
Operating profit		2,537			2,990			2,895			(1,055	)		2,425			2,859			3,472			2,949			4,307			4,299			5,295

Associated companies		225			290			331			140			239			494			435			65			312			362			562
Net financial items		2,271			(297	)		(238	)		(215	)		151			(28	)		(122	)		(348	)		1,206			(724	)		193
Profit before taxes		5,033			2,983			2,988			(1,130	)		2,815			3,325			3,785			2,666			5,825			3,937			6,050

Taxes		(1,610	)		(911	)		(926	)		986			(845	)		(997	)		(1,136	)		(475	)		(1,573	)		(1,063	)		(1,633	)
Profit from continuing operations		3,423			2,072			2,062			(144	)		1,970			2,328			2,649			2,191			4,252			2,874			4,417

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			4,417


Attributable to:
Non-controlling interests (Minority interests)		292			363			379			286			260			287			449			492			580			590			636
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			3,781


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			2.25
Diluted		1.77			0.97			0.97			(0.25	)		0.99			1.19			1.29			1.00			2.17			1.35			2.25
From total operations:
Basic		1.77			0.97			0.97			(0.25	)		0.99			1.19			1.30			1.00			2.15			1.35			2.25
Diluted		1.77			0.97			0.97			(0.25	)		0.99			1.19			1.29			1.00			2.15			1.35			2.25


US GAAP
Net income		2,991			1,569			1,649			(570	)		1,625			1,904			2,225			1,673			3,621			2,352			3,744
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			2.23
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			2.23

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		1,481
Goodwill		13,378		12,816		18,273		20,700		22,648		22,969		31,415
Intangible assets		10,809		10,229		11,389		21,245		23,178		22,735		27,613
Tangible assets		38,952		39,292		40,688		43,958		49,132		48,767		52,994
Associated companies		6,980		7,832		8,320		7,424		7,501		7,616		8,303
Other financial assets		2,679		3,388		3,161		2,129		2,407		2,337		3,119
Total non-current assets		75,688		75,508		83,148		98,508		107,367		106,332		124,925


Accounts receivable		6,078		6,523		7,146		6,921		7,404		8,191		9,160
Other current assets		7,050		7,229		8,205		10,970		10,248		10,391		10,837
Assets held for sale		—		—		—		667		—		—		—
Liquid assets		8,187		10,900		6,444		7,191		9,691		7,983		17,255

Total current assets		21,315		24,652		21,795		25,749		27,343		26,565		37,252

Total assets		97,003		100,160		104,943		124,257		134,710		132,897		162,177


Shareholders equity		41,936		40,309		42,714		46,399		47,583		44,359		50,940
Minority interests		4,289		4,630		5,198		7,134		7,621		7,457		8,082

Total equity and minority interests		46,225		44,939		47,912		53,533		55,204		51,816		59,022


Pension obligations		2,443		2,286		2,403		2,440		2,645		2,543		2,461
Deferred tax liabilities		2,293		2,050		2,290		2,669		3,611		3,336		4,036
Other provisions		748		748		787		790		811		873		1,074

Provisions		5,484		5,084		5,480		5,899		7,067		6,752		7,571


Non-current interest-bearing liabilities		21,492		22,359		22,406		27,139		25,397		26,654		52,201
Non-current non-interest-bearing liabilities		572		556		542		580		590		583		568

Total non-current liabilities		22,064		22,915		22,948		27,719		25,987		27,237		52,769


Current interest-bearing liabilities		3,681		7,269		6,592		11,908		20,024		20,069		13,418
Accounts payable		4,900		4,471		5,402		6,215		6,448		6,572		7,404
Current non-interest-bearing liabilities		14,649		15,482		16,609		18,696		19,980		20,451		21,993
Current non-interest-bearing liabilities (held for sale)		—		—		—		287		—		—		—

Total current liabilities		23,230		27,222		28,603		37,106		46,452		47,092		42,815

Total equity and liabilities		97,003		100,160		104,943		124,257		134,710		132,897		162,177


Equity ratio including minority interests (%)		47.7		44.9		45.7		43.1		41.0		39.0		36.4

USGAAP
Shareholders equity		43,930		42,670		44,900		47,457		48,536		45,669		52,093

No. of man-years		21,900		22,400		23,400		27,600		30,450		31,750		33,250
- of which outside Norway		10,600		11,100		12,400		16,700		19,400		21,000		22,500

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			15,812
Taxes paid		(231	)		(434	)		(728	)		(1,369	)		(638	)		(1,162	)		(1,708	)
Net (gains) losses, including write-downs and change in fair value of financial items		(466	)		(584	)		(738	)		(929	)		(1,817	)		(1,605	)		(2,486	)
Depreciation, amortization and write-downs		2,681			5,452			8,358			12,131			3,549			7,180			10,958
Associated companies		(239	)		(733	)		(1,168	)		(1,233	)		(312	)		(674	)		(1,236	)
Difference between expensed and paid pensions		169			42			203			211			156			52			(65	)
Currency (gains) losses not related to operating activities		25			(162	)		(203	)		(18	)		109			95			278
Change in other accruals		453			4			532			956			(100	)		(561	)		11
Net cash flows from operating activities		5,207			9,725			16,181			22,340			6,772			13,087			21,564


Purchases of property, plant and equipment and intangible assets		(2,271	)		(5,538	)		(9,078	)		(14,213	)		(4,097	)		(8,562	)		(13,473	)
Purchases of subsidiaries and associated companies, net of cash received		(3	)		(109	)		(5,653	)		(8,128	)		(8,578	)		(9,425	)		(21,761	)
Sales of property, plant and equipment, intangible assets and businesses, net of cash transferred		59			741			1,161			1,279			438			472			589
Sales and purchases of other investments		768			1,078			1,000			1,064			2,196			1,707			2,131
Net cash flows from investing activities		(1,447	)		(3,828	)		(12,570	)		(19,998	)		(10,041	)		(15,808	)		(32,514	)


Proceeds from and repayments of interest-bearing liabilities		(686	)		2,735			2,210			4,175			6,185			7,399			25,759
Proceeds from issuance of shares, including from minorities in subsidiaries		22			24			47			74			61			86			91
Share buy-back		(329	)		(657	)		(2,267	)		(2,267	)		—			(87	)		(864	)
Dividends paid and repayment of equity to minority interests in subsidiaries		(25	)		(209	)		(209	)		(219	)		—			(426	)		(665	)
Dividends paid to Telenor’s shareholders		—			(2,460	)		(2,595	)		(2,595	)		—			(3,202	)		(3,389	)
Net cash flows from financing activities		(1,018	)		(567	)		(2,814	)		(832	)		6,246			3,770			20,932


Effect on cash and cash equivalents of changes in foreign exchange rates		47			130			155			215			(100	)		(321	)		11
Net change in cash and cash equivalents		2,789			5,460			952			1,725			2,877			728			9,993

Cash and cash equivalents at the beginning of the period		5,081			5,081			5,081			5,081			6,806			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			16,799

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			1
DTAC — Thailand		—		—			—			—			—			—			—			—			—			—			1
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			(1	)
Corporate functions and Group activities		2		59			3			35			22			57			58			26			5			12			3
Eliminations		—		—			—			—			—			—			—			4			—			—			—

Total gains on disposal of fixed assets and operations		8		358			75			121			31			120			94			75			31			39			4


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			(4	)
Kyivstar — Ukraine		—		—			—			—			—			—			—			—			—			1			—
Pannon — Hungary		—		—			3			—			4			1			17			(3	)		2			2			2
DTAC — Thailand		—		—			—			—			—			—			—			—			—			—			—
DiGi — Malaysia		—		—			—			—			—			—			5			—			—			—			—
GrameenPhone — Bangladesh		—		—			4			4			—			—			10			—			—			1			19
Other mobile operations		—		—			—			—			—			—			—			1			—			—			—
Fixed		—		2			24			(1	)		—			—			—			65			(12	)		1			4
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			1
Eliminations		—		—			(16	)		1			—			—			—			1			—			—			—

Total losses on disposal of fixed assets and operations		3		26			50			(5	)		8			32			40			72			3			37			22


Expenses for workforce reductions and loss contracts
Telenor Mobile — Norway		4		(4	)		—			24			(1	)		—			—			(1	)		9			3			1
Sonofon — Denmark		—		—			—			28			—			3			—			9			3			2			37
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			17
Broadcast		—		1			1			3			—			—			—			—			—			—			—
EDB Business Partner		—		27			16			(10	)		—			5			—			13			—			—			144
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			6
Eliminations		—		—			—			(562	)		—			(1	)		(2	)		(242	)		—			(1	)		1
Total workforce reductions and loss contracts		25		163			42			106			2			22			274			112			92			29			206

Total other (income) and expenses		20		(169	)		17			(20	)		(21	)		(66	)		220			109			64			27			224


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			—			—			—			—			—			—			6
Kyivstar — Ukraine		—			—			—			—			—			—			—			15			—			—			13
Pannon — Hungary		—			—			—			21			—			2			1			4			—			33			—
DTAC — Thailand		—			—			—			—			—			—			—			—			—			—			—
DiGi — Malaysia		—			—			—			—			1			—			1			3			—			7			1
GrameenPhone — Bangladesh		—			—			—			3			—			—			—			—			—			—			—
Other mobile operations		—			—			—			—			—			—			—			—			—			—			—
Fixed		—			—			—			40			(22	)		2			(2	)		609			—			15			9
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			29


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			(5	)

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			4,417
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			4,417
Taxes		(1,610	)		(911	)		(926	)		986			(845	)		(997	)		(1,136	)		(475	)		(1,573	)		(1,063	)		(1,633	)
Profit before taxes		5,033			2,983			2,988			(1,130	)		2,815			3,325			3,785			2,666			5,825			3,937			6,050
Net financial items		2,271			(297	)		(238	)		(215	)		151			(28	)		(122	)		(348	)		1,206			(724	)		193
Associated companies		225			290			331			140			239			494			435			65			312			362			562
Depreciation and amortization		2,508			2,707			2,719			2,703			2,704			2,751			2,902			3,187			3,546			3,543			3,749
Write-downs		3			1			41			3,486			(23	)		20			4			586			3			88			29
EBITDA		5,048			5,698			5,655			5,134			5,106			5,630			6,378			6,722			7,856			7,930			9,073


EBITDA		5,048			5,698			5,655			5,134			5,106			5,630			6,378			6,722			7,856			7,930			9,073
Other (income) and expenses		20			(169	)		17			(20	)		(21	)		(66	)		220			109			64			27			224
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			9,297


Operating profit		2,537			2,990			2,895			(1,055	)		2,425			2,859			3,472			2,949			4,307			4,299			5,295
Write-downs		3			1			41			3,486			(23	)		20			4			586			3			88			29
Other (income) and expenses		20			(169	)		17			(20	)		(21	)		(66	)		220			109			64			27			224
Adjusted operating profit		2,560			2,822			2,953			2,411			2,381			2,813			3,696			3,644			4,374			4,414			5,548


Profit before taxes		5,033			2,983			2,988			(1,130	)		2,815			3,325			3,785			2,666			5,825			3,937			6,050
Net (gains) losses and write-downs financial items		(2,613	)		(17	)		(22	)		(21	)		(417	)		(67	)		(3	)		(31	)		(1,815	)		15			(5	)
(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			29
Other (income) and expenses		20			(169	)		17			(20	)		(21	)		(66	)		220			109			64			27			224
Adjusted profit before taxes		2,443			2,789			3,016			2,300			2,354			3,209			4,013			3,499			4,077			4,072			6,298

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			220
Sonofon — Denmark		66		144			102			76		28			140			137			757			109			170			168
Telenor Mobile — Sweden		4		4			3			6		—			—			—			—			135			137			112
Kyivstar — Ukraine		331		566			687			1,024		735			919			1,106			890			830			770			992
Pannon — Hungary		104		121			121			820		109			243			150			261			71			235			168
Telenor — Serbia		—		—			—			—		—			—			—			—			—			—			49
Promonte — Montenegro		—		—			3			13		5			4			8			21			4			7			24
DTAC — Thailand		—		—			—			—		—			—			—			146			605			543			565
DiGi — Malaysia		103		162			228			427		108			178			310			574			226			199			371
GrameenPhone — Bangladesh		160		258			418			482		496			357			590			1,153			389			516			435
Telenor — Pakistan		—		1,821			19			153		1,139			(91	)		299			496			351			754			701
Fixed — Norway		355		315			346			457		337			503			412			917			479			371			354
Fixed Sweden		15		72			58			134		40			48			142			255			83			230			155
Fixed Denmark		—		—			—			—		—			—			40			57			55			42			52
Fixed — Other/Fixed Eliminations		8		(2	)		15			18		4			5			8			8			—			—			—
Broadcast		23		70			716			71		47			96			116			133			92			106			157
Other units		88		241			99			269		125			193			193			321			156			203			291
Eliminations		—		(15	)		(7	)		—		(7	)		(15	)		(11	)		(14	)		(11	)		(4	)		2

Total capex		1,471		4,012			3,140			4,122		3,360			2,923			3,720			6,436			3,703			4,422			4,816

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		—		—			—		—		—		—		—		—			—		—		—
Telenor — Serbia		—		—			—		—		—		—		—		—			—		—		11,980
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		2
Fixed Denmark		—		—			—		—		—		—		1,313		7			—		—		—
Fixed — Other/Fixed Eliminations		8		—			—		2		—		—		—		—			—		—		—
Broadcast		—		—			—		—		—		—		17		25			—		98		50
Other units		22		441			104		762		7		263		15		47			658		616		301
Eliminations		—		(337	)		—		—		—		—		—		—			—		—		—

Total investments in businesses		3,749		294			644		1,122		50		264		5,824		2,720			8,943		828		12,333

PRESENTATION MATERIAL

Q3 2006

In the third quarter of 2006, Telenor’s revenues amounted to NOK 23.9 billion, which was an increase of 35% compared to the third quarter of 2005. Profit before taxes was NOK 6.1 billion.

Strong financial performance

Highlights third quarter 2006:

•		Revenue growth of 35% – underlying growth of 12%

•		Record high EBITDA margin

•		Improved results in Nordic mobile operations

•		Continued impressive performance in Kyivstar

•		Telenor Serbia consolidated from 1 September

‘I’m very happy to present a strong operational and financial quarter. We have achieved excellent results with continued high growth in subscriptions and revenues, combined with a record high EBITDA margin. Most of our operations improved their margins compared to last year. We are especially satisfied with the performance of our Nordic mobile operations where we are seeing good improvement. At the same time Kyivstar and GrameenPhone continue to impress, delivering solid performances.

We have expanded our footprint in the Balkans and are pleased to now include Telenor Serbia in the Group. We are looking forward to developing the company together with our other operations in this region’, said President and CEO of Telenor, Jon Fredrik Baksaas.

Key Figures


	3rd quarter				First three quarters				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 have adjusted the outlook for the full year. For 2006, Telenor expects a revenue growth of around 35% with an EBITDA margin before other income and expenses of around 36%. Capital expenditure, as a proportion of revenues, is expected to be around 20%.

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

Telenor’s Operations

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

Nordic Mobile Operations

Telenor Mobile — Norway


	3rd quarter				First three quarters				Year
(NOK in millions)	2006		2005		2006		2005		2005

Subscription and traffic		2 264		2 098		6 457		6 028		8 148
Interconnection revenues		443		441		1 363		1 300		1 754
Mobile revenues company’s subscriptions		2 707		2 539		7 820		7 328		9 902

Other mobile revenues		624		484		1 661		1 299		1 825
Total mobile revenues		3 331		3 023		9 481		8 627		11 727

Non-mobile revenues		127		98		355		381		516
Total revenues 1)		3 458		3 121		9 836		9 008		12 243

1) Of which internal revenues		221		299		744		890		1 171

EBITDA		1 513		1 218		4 201		3 285		4 471
Depreciation and amortization 2)		206		224		637		667		889
Write-downs		—		4		33		14		16
Operating profit		1 307		990		3 531		2 604		3 566

2) Of which amortization of Telenor’s net excess values		1		1		3		3		4

EBITDA/Total revenues (%)		43.8		39.0		42.7		36.5		36.5
Operating profit/Total revenues (%)		37.8		31.7		35.9		28.9		29.1
Capex		220		220		492		757		1 218
ARPU – monthly (NOK)		331		314		320		306		309
No. of subscriptions(in thousands)						2 711		2 736		2 731

•		The number of subscriptions increased by 2,000, while the estimated market share remained stable at 55% compared to the previous quarter.

•		The increase in ARPU was mainly related to increased average usage per subscription (AMPU).

•		Total mobile revenues increased by 10%. Mobile revenues from own subscriptions were positively affected by increase in ARPU, partially offset by price regulation of mobile termination charges introduced from 1 July 2006. Other mobile revenues increased due to increased sales of capacity on a wholesale basis and were also positively affected by a reversal of provision of NOK 107 million related to the Sense case mentioned below.

•		Non-mobile revenues increased due to higher sales of customer equipment.

•		Adjusted for the provision related to Sense and for a NOK 43 million positive one-time effect related to change of pension plan (see page 9), the EBITDA margin was 41%. The increase in EBITDA margin was mainly driven by higher revenues.

•		Capital expenditure was stable compared to the third quarter last year, but increased from the previous quarter due to higher investments related to UMTS, GSM and IS/IT.

•		The Reitan Group/Sense case against Telenor Mobil for charging excessive reseller prices was rejected by the Supreme Court 15 September 2006.

Sonofon — Denmark


	3rd quarter					First three quarters					Year
(NOK in millions)	2006		2005			2006		2005			2005

Subscription and traffic		693		600			1 945		1 766			2 361
Interconnection revenues		327		325			1 013		953			1 300
Mobile revenues company’s subscriptions		1 020		925			2 958		2 719			3 661

Other mobile revenues		169		181			466		482			638
Total mobile revenues		1 189		1 106			3 424		3 201			4 299

Non-mobile revenues		239		250			704		656			892
Total revenues 1)		1 428		1 356			4 128		3 857			5 191

1) Of which internal revenues		55		43			133		98			132

EBITDA		390		307			1 002		868			1 176
Depreciation and amortization 2)		280		308			837		989			1 285
Operating profit (loss)		110		(1	)		165		(121	)		(109	)

2) Of which amortization of Telenor’s net excess values		138		131			407		422			555

EBITDA/Total revenues (%)		27.3		22.6			24.3		22.5			22.7
Operating profit/Total revenues (%)		7.7	nm				4.0	nm			nm
Capex		168		137			447		305			1 062
Investments in businesses		—		—			—		—			4
ARPU – monthly (NOK)		257		243			251		242			243
No. of subscriptions (in thousands)							1 342		1 261			1 284

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

	•		In the third quarter of 2006 the number of subscriptions increased by 32,000.

	•		Sonofon’s estimated market share remained stable at 27% compared to the previous quarter.

	•		ARPU in local currency increased by 4% mainly driven by higher AMPU partially offset by lower average prices.

	•		Total revenues in local currency increased by 4%. Revenues from Subscription and traffic increased as a result of a higher subscription base and increased average usage. This was partially offset by the price regulation of mobile termination charges introduced from 1 May 2006.

	•		EBITDA measured in local currency increased by 25% primarily driven by higher revenues and contribution from the larger customer base combined with cost efficiency initiatives and lower costs related to sales and marketing activities.

	•		Sonofon terminated its backbone agreement with Telia and is now using its own fibre network. NOK 36 million have been expensed due to terminating the agreement, however the termination will have a positive effect on costs going forward.

	•		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 3G network.

	•		At the end of September Sonofon launched 3G services and is now offering high-speed mobile data connections, 10 months after purchasing the licence.

Telenor Mobile — Sweden


	3rd quarter						First three quarters						Year
(NOK in millions)	2006			2005			2006			2005			2005

Subscription and traffic		1 050			34			2 924			104			130
Interconnection revenues		219			15			660			48			60
Mobile revenues company’s subscriptions		1 269			49			3 584			152			190

Other mobile revenues		133			19			318			44			54
Total mobile revenues		1 402			68			3 902			196			244

Non-mobile revenues		148			—			379			—			—
Total revenues 1)		1 550			68			4 281			196			244

1) Of which internal revenues		42			39			117			100			124

EBITDA		371			(139	)		782			(167	)		(476	)
Depreciation and amortization 2)		435			—			1 188			—			—
Write-downs		6			—			6			—			—
Operating loss		(70	)		(139	)		(412	)		(167	)		(476	)

2) Of which amortization of Telenor’s net excess values		260			—			376			—			—

EBITDA/Total revenues (%)		23.9		nm				18.3		nm			nm
Capex		112			—			384			—			—
Investments in businesses		—			—			7 747			—			—
ARPU – monthly (NOK)		249			164			240			165			158
No. of subscriptions (in thousands)								1 708			97			95

Mobile Sweden is consolidated with effect from 5 January 2006. Compared to the third quarter of 2005, the Norwegian Krone depreciated against the Swedish Krone by approximately 3% in the third quarter of 2006.

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

•		The number of subscriptions increased by 32,000.

•		Mobile Sweden’s estimated market share remained stable at 17% compared to the previous quarter.

•		Total revenues in local currency increased by 6% due to increased share of contract subscriptions and stronger seasonal roaming revenues.

•		The increase in EBITDA margin was due to higher revenues and lower costs related to sales and marketing activities. EBITDA in local currency increased by 51%.

Central Eastern European Operations

Kyivstar – Ukraine

3rd quarter

First three quarters

Year

(NOK in millions)

2006

2005

2006

2005

Subscription and traffic

2 321

1 437

6 022

3 402

5 122

Interconnection revenues

606

541

1 696

1 282

1 888

Mobile revenues company’s subscriptions

2 927

1 978

7 718

4 684

7 010

Other mobile revenues

168

125

158

Total mobile revenues

3 009

2 050

7 886

4 809

7 168

Non-mobile revenues

104

Total revenues 1)

3 025

2 076

7 934

4 882

7 272


	3rd quarter				First three quarters				Year
(NOK in millions)	2006		2005		2006		2005		2005

1) Of which internal revenues		5		2		6		5		6

EBITDA		1 827		1 148		4 855		2 691		4 050
Depreciation and amortization 2)		395		322		1 155		884		1 209
Write-downs		13		—		13		—		15
Operating profit		1 419		826		3 687		1 807		2 826

2) Of which amortization of Telenor’s net excess values		23		24		70		69		93

EBITDA/Total revenues (%)		60.4		55.3		61.2		55.1		55.7
Operating profit/Total revenues (%)		46.9		39.8		46.5		37.0		38.9
Capex		992		1 106		2 592		2 760		3 650
ARPU – monthly (NOK)		57		66		55		60		61
No. of subscriptions (100% in thousands)						17 709		10 943		13 925

At the end of the third quarter of 2006, Telenor’s ownership interest in Kyivstar was 56.5%. Compared to the third quarter of 2005, the Norwegian Krone appreciated against the Ukrainian Hryvnia by approximately 4% in the third quarter of 2006.

	•		The number of subscriptions increased by 1.7 million during the third quarter of 2006 and by 6.8 million compared to the third quarter of 2005.

	•		Kyivstar maintained its position as market leader with an estimated market share of 44%, in line with the previous quarter.

	•		ARPU in local currency decreased by 10% compared to the third quarter of 2005 mainly due to lower average prices as a result of increased competition and penetration.

	•		The steady increase in AMPU has partially offset the drop in average prices compared to last year. Average prices have however remained stable over the last three quarters.

	•		Total revenues in local currency increased by 48% due to a significant increase in the number of subscriptions, partially offset by lower ARPU.

	•		The EBITDA margin increased by 5.1 percentage points mainly due to increased revenues, while operating expenses in proportion of revenues decreased. EBITDA in local currency increased by 62%, primarily due to higher revenues.

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

Pannon — Hungary


	3rd quarter				First three quarters				Year
(NOK in millions)	2006		2005		2006		2005		2005

Subscription and traffic		940		1 025		2 779		2 808		3 768
Interconnection revenues		415		416		1 215		1 304		1 735
Mobile revenues company’s subscriptions		1 355		1 441		3994		4 112		5 503

Other mobile revenues		45		52		103		124		144
Total mobile revenues		1 400		1 493		4 097		4 236		5 647

Non-mobile revenues		64		90		207		260		414
Total revenues1)		1 464		1 583		4 304		4 496		6 061

1) Of which internal revenues		3		2		8		6		10

EBITDA		581		650		1 688		1 651		2 185
Depreciation and amortization 2)		251		294		784		886		1 171
Write-downs		—		1		33		3		7
Operating profit		330		355		871		762		1 007

2) Of which amortization of Telenor’s net excess values		79		86		242		261		345

EBITDA/Total revenues (%)		39.7		41.1		39.2		36.7		36.1
Operating profit/Total revenues (%)		22.5		22.4		20.2		16.9		16.6
Capex		168		150		474		502		763
ARPU – monthly (NOK)		150		166		151		162		162
No. of subscriptions (in thousands)						2 981		2 856		2 929

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

	•		In the third quarter of 2006 the number of subscriptions increased by 34,000.

	•		Pannon’s market share remained stable at 33% compared to the previous quarter.

	•		ARPU in local currency decreased slightly. Higher AMPU partially offset lower average prices.

	•		Total mobile revenues in local currency increased by 2%. Lower traffic revenues, mainly as a result of price erosion, were more than offset by the effect from a higher share of contract subscriptions and higher interconnection revenues.

	•		Non-mobile revenues decreased due to lower sale of handsets.

	•		The EBITDA margin declined by 1.3 percentage points primarily due to higher interconnection costs in the third quarter of 2006 and positive one-time adjustments in the third quarter of 2005. Measured in local currency, EBITDA decreased by 3%.

	•		4 October 2006, the Hungarian regulator (NHH) published a decision regarding mobile interconnection charges. According to the decision all mobile operators must implement symmetric cost based termination rates of HUF 16.84 by 1 January 2009. The charges for Pannon should be reduced to HUF 24.4, from HUF 29.44, when the decision enters into force in February 2007 and to HUF 20.29 from 1 January 2008. The operators must either accept the fees calculated by NHH or build their own model according to requirements made by the regulator. For 2007, the estimated effect on EBITDA is limited.

Telenor — Serbia


	3rd quarter				First three quarters				Year
(NOK in millions)	2006		2005		2006		2005		2005

Total revenues		175		—		175		—		—
EBITDA		103		—		103		—		—
Operating profit 1)		86		—		86		—		—

Capex		49		—		49		—		—
Investments in businesses		11 980		—		11 980		—		—
No. of subscriptions (in thousands)						2 284		—		—
1) Includes amortization of Telenor’s net excess values		5		—		5		—		—

31 August 2006 Telenor acquired 100% of the shares in Mobi 63, now renamed Telenor, for NOK 11.98 billion. Telenor – Serbia is consolidated from 1 September 2006. Telenor – Serbia is part of ’Other mobile operations’ in the table on page 17. For further information, please refer to the section Business Combinations on page 20. The preceding table shows figures from the time of consolidation.

•

The high EBITDA margin was a result of limited activities in September.

Promonte — Montenegro


	3rd quarter				First three quarters				Year
(NOK in millions)	2006		2005		2006		2005		2005

Total revenues		211		180		464		407		519
EBITDA		122		98		242		213		260
Operating profit 1)		84		58		127		88		95

Capex		24		8		35		17		38
No. of subscriptions (in thousands)						479		394		310
1) Includes amortization of Telenor’s net excess values		20		20		60		60		80

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

	•		In the third quarter of 2006 the number of subscriptions increased by 116,000, leading to an estimated market share of 61%, an increase of 1 percentage point compared to the previous quarter. The growth in subscriptions was mainly related to the tourist season.

	•		Promonte delivered a strong quarter with high revenue growth and improved EBITDA margin.

Asian Operations

DTAC — Thailand


	3rd quarter				First three quarters				Year
(NOK in millions)	2006		2005		2006		2005		2005

Subscription and traffic		1 887		—		5 499		—		1 074
Interconnection revenues		41		—		107		—		25
Mobile revenues company’s subscriptions		1 928		—		5 606		—		1 099

Other mobile revenues		93		—		309		—		74
Total mobile revenues		2 021		—		5 915		—		1 173

Non-mobile revenues		20		—		51		—		18
Total revenues 1)		2 041		—		5 966		—		1 191

1) Of which internal revenues		6		—		25		—		6

EBITDA		732		—		2 149		—		445
Depreciation and amortization 2)		356		—		1 028		—		220
Operating profit		376		—		1 121		—		225

2) Of which amortization of Telenor’s net excess values		51		—		152		—		35

EBITDA/Total revenues (%)		35.9		—		36.0		—		37.4
Operating profit/Total revenues (%)		18.4		—		18.8		—		18.9
Capex		565		—		1 713		—		146
Investments in businesses		—		—		116		—		2 664
ARPU – monthly (NOK)		58		—		61		—		66
No. of subscriptions (100% in thousands)						11 241		—		8 677

ARPU has been adjusted for the periods from the fourth quarter of 2005 to the second quarter of 2006.

At the end of the third quarter of 2006, Telenor’s economic stake in DTAC was 73.1%. Compared to the second quarter of 2006, the Norwegian Krone depreciated against the Thai Baht by approximately 1% in the third 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 second quarter of 2006.

•		DTAC continued to grow its subscriptions in the third quarter of 2006 by 619,000 and is estimated to have maintained its market share at around 31%, in spite of the fierce competition.

•		ARPU in local currency declined by 3%, however total revenues in local currency increased by 5% which was primarily driven by the increase in total number of subscriptions.

•		Capital expenditure remained in line with the first and second quarter following continuous investments in network capacity and network expansion to accommodate the increasing subscription base.

•		The National Telecommunications Commission (NTC) in Thailand has approved DTAC’s Reference Interconnect Offer and, on 4 October 2006, DTAC requested bilateral negotiations with the other fixed and mobile operators in Thailand. According to NTC regulations, the bilateral interconnect negotiations must be completed within 90 days from when the requested party receives notification. If the operators cannot reach an agreement within the 90 days, the NTC will force an interim rate.

•

DTAC has a concession agreement whereby the Communication Authorities of Thailand (CAT Telecom) has granted DTAC the right to build, transfer and operate a mobile network in Thailand. The revenue share, which DTAC is required to pay on a material part of its services, to CAT Telecom, increased as scheduled from 20% to 25% from 16 September 2006.

DiGi — Malaysia


	3rd quarter				First three quarters				Year
(NOK in millions)	2006		2005		2006		2005		2005

Subscription and traffic		1 355		1 035		3 965		2 751		3 949
Interconnection revenues		138		155		431		435		594
Mobile revenues company’s subscriptions		1 493		1 190		4 396		3 186		4 543

Other mobile revenues		33		18		74		47		65
Total mobile revenues		1 526		1 208		4 470		3 233		4 608

Non-mobile revenues		58		77		204		247		324
Total revenues 1)		1 584		1 285		4 674		3 480		4 932

1) Of which internal revenues		2		1		5		2		4

EBITDA		721		560		2 121		1 510		2 142
Depreciation and amortization 2)		296		255		775		765		1 038
Write-downs		1		1		8		2		5
Operating profit		424		304		1 338		743		1 099

2) Of which amortization of Telenor’s net excess values		3		13		11		47		51

EBITDA/Total revenues (%)		45.5		43.6		45.4		43.4		43.4
Operating profit/Total revenues (%)		26.8		23.7		28.6		21.4		22.3
Capex		371		310		796		596		1 170
ARPU – monthly (NOK)		90		100		93		97		98
No. of subscriptions (100% in thousands)						5590		4 187		4 795

At the end of the third quarter of 2006, Telenor’s ownership interest in DiGi was 61.0%. Compared to the third quarter of 2005, the Norwegian Krone appreciated against the Malaysian Ringgit by approximately 1% in the third quarter of 2006.

	•		The number of subscriptions increased by 150,000 in the third quarter of 2006 and by 1.4 million compared to the third quarter of 2005.

	•		DiGi’s market share was estimated around 25%.

	•		ARPU measured in local currency decreased by 9% primarily due to lower outgoing traffic combined with a reduction in interconnect access pricing.

	•		Total revenues measured in local currency increased by 23% driven by a 34% increase in the subscription base.

	•		The EBITDA margin improved by 2 percentage points mainly due to improved gross margin as a result of higher on-net traffic and lower costs related to sales and marketing activities. Measured in local currency EBITDA increased by 28%.

	•		Depreciation and amortization increased primarily due to accelerated depreciation resulting from the re-assessment of assets useful lives with effect from 1 July 2006.

	•		Increased capital expenditure was related to investments in the network due to increased traffic, a higher subscription base and improved coverage.

	•		The regulatory body of Malaysia has introduced mandatory prepaid registration to be implemented by 15 December 2006. Operators are required to disconnect non-registered users from their networks by year end. As most of these represent multiple SIM-cards, the action will have limited effect on revenue, but will imply a correction of penetration level, subscription base, ARPU and AMPU.

GrameenPhone — Bangladesh


	3rd quarter				First three quarters				Year
(NOK in millions)	2006		2005		2006		2005		2005

Subscription and traffic		1 032		715		2814		1 972		2 741
Interconnection revenues		94		52		245		125		188
Mobile revenues company’s subscriptions		1 126		767		3 059		2 097		2 929

Other mobile revenues		3		6		14		16		22
Total mobile revenues		1 129		773		3 073		2 113		2 951

Non-mobile revenues		4		2		12		7		19
Total revenues 1)		1 133		775		3 085		2 120		2 970

1) Of which internal revenues		—		—		1		—		1

EBITDA		645		441		1 792		1 104		1 559
Depreciation and amortization		169		107		476		273		439
Operating profit		476		334		1 316		831		1 120


EBITDA/Total revenues (%)		56.9		56.9		58.1		52.1		52.5
Operating profit/Total revenues (%)		42.0		43.1		42.7		39.2		37.7
Capex		435		590		1 340		1 443		2 596
ARPU – monthly (NOK)		41		65		45		72		68
No. of subscriptions (100% in thousands)						9 404		4 215		5 542

At the end of the third quarter of 2006, Telenor’s ownership interest in GrameenPhone was 62.0%. Compared to the third quarter of 2005, the Norwegian Krone appreciated against the Bangladeshi Taka by approximately 8% in the third quarter of 2006.

	•		The number of subscriptions increased by almost 1 million in the third quarter of 2006 and by 5.2 million from the third quarter of 2005.

	•		GrameenPhone’s estimated market share remained stable at 63% compared to the previous quarter.

	•		ARPU in local currency decreased by 31% primarily due to decrease in average prices and dilution due to subscription growth.

	•		Measured in local currency, total revenues increased by 57% mainly due to the higher number of subscriptions. This was partially offset by reduction in ARPU.

	•		The EBITDA margin remained stable, while EBITDA in local currency increased by 57%.

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

	•		The decrease in capital expenditure was primarily a result of lower prices from suppliers.

Telenor — Pakistan


	3rd quarter						First three quarters						Year
(NOK in millions)	2006			2005			2006			2005			2005

Total revenues		333			76			813			125			265
EBITDA		(87	)		(134	)		(281	)		(439	)		(572	)
Operating loss		(199	)		(201	)		(594	)		(580	)		(798	)

Capex		701			299			1 806			1 347			1 843
No. of subscriptions (in thousands)								4 597			1 200			1 868

Compared to the third quarter of 2005, the Norwegian Krone appreciated against the Pakistani Rupi by approximately 5% in the third quarter of 2006. Telenor – Pakistan is part of ‘Other mobile operations’ in the table on page 17.

	•		Telenor – Pakistan experienced a significant growth in the number of subscriptions with net additions of 1.4 million during this quarter alone.

	•		Telenor – Pakistan’s estimated market share increased further by 1 percentage point to 11% from the previous quarter.

	•		ARPU in local currency decreased by 9% compared to the second quarter of 2006 primarily due to a reduction of interconnect charges from 1 July 2006.

	•		Compared to the second quarter of 2006, total revenues in local currency increased by 25% mainly due to subscription growth partially offset by reduction in ARPU.

	•		Compared to the second quarter of 2006 there was a positive development in EBITDA, mainly due to higher revenues.

	•		The increase in capital expenditure was related to the roll-out of the mobile network.

	•		1 July 2006, following a decision made by the regulator, the interconnection charges of mobile operators were reduced from PKR 1.6 to PKR 1.25 per minute. At the same time the charging principle was changed from per minute to per second charging.

Fixed


	3rd quarter						First three quarters						Year
(NOK in millions)	2006			2005			2006			2005			2005

Revenues
Norway		3 796			4 151			11 957			12 681			16 867
Other operations		1 056			840			3 022			1 694			2 581
Eliminations		(11	)		(27	)		(72	)		(87	)		(135	)
Total revenues 1)		4 841			4 964			14 907			14 288			19 313

1) Of which internal revenues		470			588			1 459			1 571			2 173

EBITDA		1 671			1 430			4 797			4 342			5 885
Depreciation and amortization 2)		769			874			2 263			2 386			3 236
Write-downs 3)		9			(2	)		24			(22	)		587
Operating profit		893			558			2 510			1 978			2 062

2) Of which amortization of Telenor’s net excess values		44			69			118			72			66
3) Of which write-downs of Telenor’s net excess values		—			(3	)		—			(34	)		(24	)

EBITDA/Total revenues (%)		34.5			28.8			32.2			30.4			30.5
Operating profit/Total revenues (%)		18.4			11.2			16.8			13.8			10.7
Capex		561			602			1 821			1 539			2 776
Investments in businesses		2			5 792			538			5 836			5 816

Fixed — Norway


	3rd quarter					First three quarters					Year
(NOK in millions)	2006		2005			2006		2005			2005

Revenues
Telephony		1 501		1 743			4 831		5 481			7 232
xDSL/Internet		579		534			1 728		1 503			2 039
Data services		204		250			618		725			963
Other revenues		285		357			957		1 099			1 465
Total retail revenues		2 569		2 884			8 134		8 808			11 699

Wholesale revenues		1 227		1 267			3 823		3 873			5 168
Total revenues 1)		3 796		4 151			11 957		12 681			16 867

1) Of which internal revenues		517		582			1 572		1 567			2 190

EBITDA		1 460		1 354			4 267		4 324			5 701
Depreciation and amortization		540		652			1 703		2 015			2 707
Write-downs 2)		—		(2	)		13		(24	)		(25	)
Operating profit		920		704			2 551		2 333			3 019

2) Of which write-downs of Telenor’s net excess values		—		(3	)		—		(34	)		(36	)

EBITDA/Total revenues (%)		38.5		32.6			35.7		34.1			33.8
Operating profit/Total revenues (%)		24.2		17.0			21.3		18.4			17.9
Capex		354		412			1 204		1 252			2 169
Investments in businesses		—		—			1		44			44
No. of subscriptions (in thousands):
Telephony							1 513		1 664			1 622
– of which PSTN							991		1 118			1 089
– of which ISDN							434		538			509
– of which VoIP							88		8			24
xDSL subscriptions							542		444			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 slightly reduced to 57% compared to the previous quarter. Measured in traffic minutes, Telenor’s estimated market share was 65%, in line with the second quarter of 2006.

	•		Total revenues decreased by 8.6%. Adjusted for the sale of contractor business in the second quarter of 2006, total revenues decreased by 6.5%, partially as a result of price reductions and slower growth of xDSL subscriptions. Adjusted total revenues in the first nine months of 2006 decreased by 4.4% compared to the first nine months of 2005.

	•		Revenues from telephony decreased due to a reduction in the number of subscriptions, lower traffic volumes and price reductions implemented from 1 September. The number of subscriptions decreased primarily due to migration to VoIP telephony with other fixed network operators. Lower traffic volumes were due to the decrease in the number of telephony subscriptions and the number of minutes per subscription. The latter was mainly due to migration of 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 dial-up 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.

	•		The decrease in Other revenues was mainly related to lower intra-group sales and lower revenues from large installation contracts.

	•		Wholesale revenues, adjusted for the outsourcing of contractor activities from 1 April 2006, increased mainly as a result of increased number of subscriptions partially offset by price reductions.

	•		The increase in EBITDA margin was mainly due to reduced operating expenses as a result of reduction in the number of man-years and lower operation and maintenance costs. In addition, in the third quarter of 2006, there was a positive one-time effect related to change of pension plan of NOK 98 million. Further, the third quarter of 2006 included costs of NOK 18 million for workforce reduction compared to NOK 115 million in the third quarter of 2005.

	•		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 primarily due to reduced investments in broadband coverage and IS/IT.

	•		6 October 2006, the Ministry of Transport and Communications in Norway published the final decision in the appeal process regarding the price for unbundled access to the local loop. According to the decision, the price for full access will remain at current level of NOK 105 per month also after 1 January 2007.

Fixed — ther operations


	3rd quarter						First three quarters						Year
(NOK in millions)	2006			2005			2006			2005			2005

Revenues
Fixed Sweden		857			654			2 450			1420			2 096
Fixed Denmark		199			142			554			142			306
Other countries/eliminations		—			44			18			132			179
Total revenues 1)		1 056			840			3 022			1 694			2 581

1) Of which internal revenues		(34	)		33			(40	)		91			118

EBITDA
Fixed Sweden		128			31			337			(25	)		158
Fixed Denmark		61			48			175			48			97
Other countries/eliminations		(1	)		(5	)		9			(4	)		(70	)
Total EBITDA		188			74			521			19			185

Depreciation and amortization 2)		229			222			560			370			528
Write-downs 3)		9			—			11			3			617
Operating loss		(50	)		(148	)		(50	)		(354	)		(960	)

Of which:
Fixed Sweden		(53	)		(134	)		(74	)		(317	)		(866	)
Fixed Denmark		5			2			19			2			29
Other countries/eliminations		(2	)		(16	)		5			(39	)		(123	)
2) Of which amortization of Telenor’s net excess values		44			69			118			72			66
3) Of which write-downs of Telenor’s net excess values		—			—			—			—			12

Capex
Fixed Sweden		155			142			468			230			485
Fixed Denmark		52			40			149			40			97
Other countries		—			8			—			17			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 September 2006 Telenor’s ownership interest in Glocalnet was 98.8%. Fixed Denmark consists of Cybercity, which is consolidated with effect from 5 July 2005. Compared to the third quarter of 2005, the Norwegian Krone appreciated against the Swedish Krone by approximately 3% and against the Danish Krone by approximately 3% in the third quarter of 2006. Operations in Other countries were sold with effect from 30 January 2006.

Fixed Sweden

	•		Revenues adjusted for the acquisition of Glocalnet were in line with the third quarter of 2005.

	•		EBITDA adjusted for Glocalnet increased due to higher gross margin for voice traffic and xDSL partially offset by increased 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. EBITDA in the third quarter of 2005 also included NOK 20 million related to workforce reduction.

	•		Total depreciation and amortization increased due to higher capital expenditure and increased amortization of prepaid lease.

	•		The number of xDSL and LAN subscriptions in Bredbandsbolaget increased by 29,000 to 429,000 in the third quarter of 2006, and the number of VoIP subscriptions increased by 13,000 to 147,000.

•

The number of xDSL subscriptions in Glocalnet increased by 2,000 to 119,000 in the third quarter of 2006, and the number of telephony subscriptions decreased by 11,000 to 273,000.

Fixed Denmark

	•		Revenues increased due to growth in the number of xDSL and VoIP subscriptions, partially offset by lower ARPU on xDSL subscriptions.

	•		EBITDA increased mainly due to higher revenues.

	•		In the third quarter of 2006, the number of xDSL subscriptions increased by 12,000 to 164,000, and the number of VoIP subscriptions increased by 11,000 to 52,000.

Broadcast


	3rd quarter						First three quarters						Year
(NOK in millions)	2006			2005			2006			2005			2005

Revenues
Distribution		1 291			1 139			3 841			3 425			4 615
Transmission		319			299			948			894			1 207
Other/Eliminations		(37	)		(46	)		(135	)		(136	)		(173	)
Total revenues 1)		1 573			1 392			4 654			4 183			5 649

1) Of which internal revenues		39			33			112			96			131

EBITDA Distribution		268			216			753			671			818
Transmission		199			181			565			530			713
Other/Eliminations		18			(3	)		12			(16	)		(15	)
Total EBITDA		485			394			1 330			1 185			1 516

Depreciation and amortization 2)		147			133			454			410			554
Write-downs 3)		—			—			3			4			(53	)
Operating profit		338			261			873			771			1 015

Of which:
Distribution		214			159			575			481			494
Transmission		117			111			316			324			564
Other/Eliminations		7			(9	)		(18	)		(34	)		(43	)
2) Of which amortization of Telenor’s net excess values		4			14			25			42			56
3) Of which write-downs of Telenor’s net excess values		—			—			—			—			75

EBITDA/Total revenues (%)		30.8			28.3			28.6			28.3			26.8
Operating profit/Total revenues (%)		21.5			18.8			18.8			18.4			18.0
Capex		157			116			355			259			392
Investments in businesses		50			17			148			17			42
No. of subscribers (in thousands):
DTH pay TV								929			876			906
Cable TV								691			636			681
Households in satellite master antenna TV networks								1 154			1 184			1 177
Cable TV Internet access								84			53			73

	•		The number of DTH pay TV subscribers increased by 8,000 in the third quarter of 2006, the number of Cable TV subscribers increased by 4,000, 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, higher revenues from satellite in Transmission, and higher revenues from the sale of cards and other services related to Pay TV access control.

	•		The increase in EBITDA was primarily due to higher revenues and lower costs related to DTH sales, partially offset by increased content cost in Distribution. In the third quarter of 2006 EBITDA was positively affected by NOK 18 million due to a one-time effect related to change of pension plan.

	•		Capital expenditure increased due to start-up of the construction of the Norwegian digital terrestrial TV (DTT) network through Norges televisjon AS (NTV) and NTV Pluss AS.

Other Units


	3rd quarter						First three quarters						Year
(NOK in millions)	2006			2005			2006			2005			2005

Revenues
EDB Business Partner		1 350			1 217			4 134			3 733			4 991
Satellite Services		632			610			1 835			1 791			2 428
Venture		140			123			419			364			490
Corporate functions and Group activities		507			517			1 597			1 702			2 266
Other		19			(1	)		20			26			25
Eliminations		(43	)		(46	)		(133	)		(187	)		(233	)
Total revenues 1)		2 605			2 420			7 872			7 429			9 967

1) Of which internal revenues		613			647			1 908			2 238			2 907

EBITDA
EDB Business Partner		39			224			371			588			785
Satellite Services		116			115			281			273			393
Venture		10			7			(11	)		12			(2	)
Corporate functions and Group activities		(63	)		67			(298	)		27			(77	)
Other/eliminations		(19	)		10			(40	)		(3	)		(8	)
Total EBITDA		83			423			303			897			1 091

Depreciation and amortization 2)		280			258			800			770			1 033
Write-downs 3)		—			—			—			—			10
Operating profit (loss)		(197	)		165			(497	)		127			48

Of which
EDB Business Partner		(67	)		120			69			281			377
Satellite Services		51			48			90			78			125
Venture		3			3			(35	)		(1	)		(23	)
Corporate functions and Group activities		(161	)		(16	)		(572	)		(228	)		(420	)
Other/eliminations		(23	)		10			(49	)		(3	)		(11	)
2) Of which amortization of Telenor’s net excess values		4			3			10			7			8
3) Of which write-downs of Telenor’s net excess values		—			—			—			—			5

Capex		291			193			650			511			832
Investments in businesses		301			15			1 575			285			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.

	•		EBITDA decreased mainly due to lower sales of maintenance contracts and costs of NOK 144 million for workforce reduction. This was partially offset by positive effects from acquired operations.

Satellite Services

•

Revenues increased primarily due to growth within the VSAT business, partially offset by decreased revenues in the Inmarsat segment as a result of lower volume and prices.

Venture

•

Revenues increased mainly due to acquisition of new business within Opplysningen in 2005.

Corporate Functions and Group Activities

•

The increased EBITDA loss is largely due to gain on sales of properties in 2005 and higher costs related to our international mobile activities. In the third quarter of 2006 EBITDA was positively affected by NOK 16 million due to a one-time effect related to change of pension plan.

Other Profit and Loss Items for the Group

Depreciation, amortization and write-downs


	3rd quarter					First three quarters					Year
(NOK in millions)	2006		2005			2006		2005			2005

Depreciation 1)		2 216		2 120			6 670		6 075			8 083
Amortization 2)		1 533		782			4 168		2 282			3 461
Total depreciation and amortization		3 749		2 902			10 838		8 357			11 544

Write-downs 1)		27		7			104		35			488
Write-downs of goodwill		—		(3	)		—		(34	)		46
Write-downs 2)		2		—			16		—			53
Total write-downs		29		4			120		1			587

Total depreciation, amortization and write-downs		3 778		2 906			10 958		8 358			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


	3rd quarter						First three quarters						Year
(NOK in millions)	2006			2005			2006			2005			2005

Telenor’s share of 1)
Profit after taxes		565			454			1 251			1 214			1 452
Amortization of Telenor’s net excess values		(3	)		(12	)		(10	)		(42	)		(46	)
Write-downs of Telenor’s net excess values		—			—			(11	)		—			(172	)
Gains (losses) on disposal of ownership interests		—			(7	)		6			(4	)		(1	)
Net result from associated companies		562			435			1 236			1 168			1 233

1)		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 26 October 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 third 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 September 2006, was NOK 24 billion. According to telecom analysts, VimpelCom had approximately 52 million mobile subscriptions at the end of the third quarter of 2006.

Financial items


	3rd quarter						First three quarters						Year
(NOK in millions)	2006			2005			2006			2005			2005

Financial income		153			84			384			299			447
Financial expenses		(672	)		(356	)		(1 867	)		(1 073	)		(1 639	)
Net foreign currency gains (losses)		(187	)		50			(316	)		202			84
Change in fair value of financial instruments		894			97			669			86			243
Net gains (losses) and write-downs		5			3			1 805			487			518
Net financial items		193			(122	)		675			1			(347	)


Gross interest expenses		(669	)		(367	)		(1 854	)		(1 104	)		(1 594	)
Net interest expenses		(549	)		(308	)		(1 568	)		(913	)		(1 309	)

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

	•		Net foreign currency losses were primarily related to liabilities in other currencies than the functional currencies.

	•		Change in fair value of financial instruments was related to marketable instruments and 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 14% of profit before taxes. The gain on sale of shares in Inmarsat in the first quarter of 2006 of NOK 1.8 billion is not taxable. Tax income of NOK 2.4 billion related to the Sonofon case will be recognised in the fourth quarter of 2006 and is included in the estimation for the effective tax rate for the full year. Adjusted for these effects, the effective tax rate for 2006 is estimated at approximately 30%. The effective tax rate for the third quarter is estimated at approximately 27%. 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

	•		Total assets as of 30 September 2006 increased by NOK 29.3 billion compared to 30 June 2006, primarily due to the acquisition of Mobi 63 on 31 August 2006. For more information regarding the preliminary allocation of net assets and goodwill related to this acquisition, see further explanation under Business Combinations on page 20.

	•		Net interest-bearing liabilities increased by NOK 9.1 billion in the quarter to NOK 47.3 billion as of 30 September 2006, mainly due to the NOK 11.98 billion acquisition of Mobi 63.

	•		As a consequence of the acquisition of Mobi 63 Telenor was downgraded from A- to BBB+ by Standard & Poor’s.

	•		In accordance with the resolution from the Annual General Meeting of 23 May 2006, the share capital was reduced by NOK 158 million to NOK 10.082 million in the third quarter. This was done by cancelling 12.1 million of Telenor’s own shares and by redeeming 14.2 million shares owned by the Kingdom of Norway.

			The total number of outstanding shares was 1,680,274,570. As of 30 September 2006, Telenor did not own any treasury shares.

	•		Translation differences increased equity in the third quarter of 2006 by NOK 2.7 billion, due to the depreciation of the Norwegian Krone compared to most of the functional currencies of Telenor’s foreign subsidiaries and associated companies as of 30 September 2006, compared to 30 June 2006. No other significant transactions have been taken directly to equity during the third quarter of 2006.

Change in pension plan

•

In 2005 Telenor decided to close the defined benefit plan for new members of Telenor Pension Fund in Norway from 1 January 2006, and to offer existing members to switch to a defined contribution plan from 3 July 2006. More than 2000 employees chose to switch to a defined contribution plan. The voluntarily change of pension plan resulted in a one-time cost reduction for Telenor of NOK 193 million in the third quarter of 2006, which were allocated to the different segments affected. The cost reduction is mainly related to the difference between pension obligations recognised for these employees for accounting purposes and the paid up policy received by the employees accepting the plan.

Outlook for 2006

	•		Based upon the strong results and positive development in the third quarter of 2006, the outlook for the full year has been adjusted compared to the report for the second quarter of 2006.

	•		The strong growth in mobile subscriptions gives Telenor a solid foundation for further growth in revenues. We expect a growth in reported revenues of around 35%.

	•		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 around 36%.

	•		We expect high capital expenditure to continue, and capital expenditure as a proportion of revenues is expected to be around 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.

Telenor (the Group) consists of Telenor ASA (the Company) and its subsidiaries. Telenor ASA is a limited company incorporated in Norway. The condensed consolidated interim financial statements consist of the Group and the Group’s interest in associated companies and joint ventures.

These condensed consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) IAS34 Interim Financial Reporting. They do not include all of the information required for full annual consolidated financial statements, and should be read in conjunction with consolidated

financial statements of the Group as at and for the year ended 31 December 2005. These condensed consolidated interim financial statements are unaudited.

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, 25 October 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.

Business Combinations

One significant business combination has been effected in the third quarter of 2006.

Telenor – Serbia

On 31 August 2006, Telenor acquired 100% of the issued share capital of Mobi 63 d.o.o. in Serbia for a cash consideration of NOK 11.98 billion. The value was set based on an auction of 100% of Mobi 63 and a 10 year licence for GSM 900/1800 and 3G. The transaction has been accounted for by the acquisition method of accounting.

Telenor – Serbia offers high quality mobile services to residential and business customers in Serbia.

The initial purchase price allocation has been determined provisionally due to completed valuation by independent financial experts of the fair values of assets acquired and liabilities assumed has not been completed yet. The preliminary net assets acquired in the transaction, and the goodwill arising, are as follows:


(NOK in millions)	Estimated fair value

Customer base		380
Licence		2 572
Software		106
Property, plant and equipment		968
Current assets excluding cash and cash equivalents		81
Bank and cash balances		—

Deferred tax liability		(38	)
Non-current assets		—
Current assets		(50	)

Net assets		4 019

Goodwill		7 961
Total consideration, satisfied by cash		11 980

The goodwill arising on the acquisition of Telenor — Serbia is attributable to the anticipated profitability of its operations.

Telenor — Serbia contributed NOK 175 million in revenues and a profit of NOK 83 million to the Telenor Group’s profit before tax for the period between the date of acquisition and 30 September 2006. This includes the results from the company and amortization of fair value adjustments, but does not include Telenor’s interest expenses related to the financing of the acquisition.