Edgar Filing: TELENOR ASA

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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

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

Date: 30th October, 2003, for the 3Q of 2003

TELENOR ASA

(Registrant’s Name)

Snaroyveien 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 [X] Form 40-F [ ]

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

Yes [ ] No [X]

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

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TELENOR ASA THIRD
30.10.03 08:11 TEL QUARTER 2003 RESULTS

Telenor’s revenues increased by 10% to NOK 13,491 million. EBITDA was NOK 4,892 million for the quarter. Operating profit was NOK 2,300 and profit before taxes and minority interests was NOK 2.0 billion. Capex was NOK 1,460 million. Net interest-bearing liabilities were NOK 21.6 billion at the end of the quarter. The Board will consider to propose that an increased share of net income is paid as dividend and will also consider to repurchase shares.

Telenor’s revenues increased by 10% to NOK 13,491 million. Adjusted for the effect of businesses acquired and disposed of and changes in foreign exchange rates, the growth in revenues was approximately 9%. Telenor’s EBITDA margin increased from 31% to 36% and EBITDA was NOK 4,892 million in the third quarter of 2003. The increase was primarily due to good underlying operations in the form of cost savings and increased revenues. The consolidation of Kyivstar also contributed to the increase. Telenor’s consolidated operating profit increased from NOK 488 million to NOK 2,300 million. The increase was affected by the above-mentioned factors as well as write-downs in 2002 of NOK 614 million. Profit before taxes and minority interests increased by NOK 2.1 billion to NOK 2.0 billion. Telenor’s program for improving the efficiency of operations, Delta 4, is progressing better than originally expected. EBITDA in Mobile increased by 23% and operating profit by 33%, to NOK 2,601 million and NOK 1,507 million respectively. The EBITDA margin increased by 1.5 percentage points to 41% in the third quarter of 2003. The EBITDA margin in Telenor Mobile - Norway was 41% in the third quarter of 2003. The EBITDA margin in Fixed increased by 4 percentage points to 34%. The EBITDA margin in Fixed - Norway increased by 4.5

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percentage points to 37%. Telenor’s market share of mobile services in Norway is estimated to be 57% at the end of the third quarter 2003 measured in number of subscriptions. The number of mobile subscriptions increased compared to the end of the second quarter. The market share in the fixed line operations was just above 69% measured in traffic minutes. Broadcast had an operating profit compared to an operating loss in the third quarter of 2002. Capital expenditure was reduced to NOK 1,460 million, compared to NOK 2,169 million in the third quarter of 2002. Net interest-bearing liabilities were NOK 21.6 billion at the end of the third quarter of 2003, a decrease of NOK 3.7 billion since the second quarter.

Outlook: For Telenor as a whole, continued growth is expected in the fourth quarter in revenues and a slight improvement in the EBITDA margin compared to the fourth quarter of 2002. For the year as a whole, this will mean a considerable improvement both in EBITDA and in the operating profit compared to 2002, excluding special items. For 2003 the level of capital expenditure is expected to be significantly lower than in 2002, in spite of the consolidation of Kyivstar, Canal Digital and Pannon GSM. Increased results and lower capital expenditure are expected to give a significant improvement in Telenor’s cash flow from operations (EBITDA-Capex) for 2003 compared to 2002. For the Norwegian fixed network operations the EBITDA margin in the fourth quarter is expected to be in line with the first nine months of the year. Telenor expects that increased revenues from ADSL will be offset by reduced revenues from traffic and Internet. At the same time, it is expected that wholesale of subscriptions will result in reduced revenues as a result of a shift from end user to wholesale revenues, while other services are expected to have a moderate growth. For the Norwegian mobile activities continued strong competitive pressure is expected. Telenor will emphasize securing our current market position. The margin development will in the short run be influenced by the competition and the growth in the market. Telenor will continue to focus on increasing efficiency. For Telenor’s international operations, continued growth in

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revenues is expected in the fourth quarter compared to the fourth quarter of 2002, but this growth is expected to slow down compared to the growth in the first nine months of 2003 as against the same period in 2002. The markets in some of Telenor’s international mobile companies are beginning to mature, and the growth is no longer influenced by the consolidation of new operations. In the separate markets there are different growth and competition, and Telenor seeks to balance the focus on profitability and market share. Compared to the fourth quarter of 2002, it is expected that in the fourth quarter of 2003 the EBITDA margin will improve, but that it will stabilize at a level corresponding approximately to the first nine months of the year. Based on improved earnings and lower investments, the Board of Telenor will consider to propose for the General Meeting that an increased share of net income is paid as dividend and will consider to repurchase shares according to an authority provided by the General Meeting.

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30.10.03 08:53 TEL CLARIFICATION OF OUTLOOK Q4 2003 delårsresultat

In the released outlook for Q4 2003 the statement of ‘slight improvement in EBITDA-margin’, relates to the adjusted EBITDA-margin of 31.5% in Q4 2002.

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Telenor:

Results for the third quarter of 2003

(Oslo/Fornebu, 30 October 2003) Telenor’s revenues increased in the third quarter of 2003 compared to the third quarter of 2002. Capital expenditure and debt were once again reduced and the programme for operational efficiency, Delta 4, progressed better in the third quarter than originally expected. Mobile operations (Mobile) showed an overall good growth, and in the Norwegian market there was a positive development in the number of subscriptions compared to the previous quarter. Fixed network operations (Fixed) showed increased margins and in Broadcast an operating loss in the third quarter of 2002 was turned to an operating profit in the third quarter of 2003.

Telenor’s revenues in the third quarter of 2003 increased by 10 per cent to close to NOK 13.5 billion compared to the corresponding period last year. Operating profit increased from NOK 488 million to NOK 2,300 million. Profit before taxes increased by NOK 2.1 billion to NOK 2.0 billion.

Compared to the third quarter of 2002, the EBITDA margin increased from 31 per cent to 36 per cent in the third quarter of 2003 while EBITDA (operating profit before depreciation, amortization and write-downs) increased from NOK 3,767 billion to near NOK 4,892 billion. The increase is primarily due to improved underlying development in the form of cost reductions and increased revenues. The consolidation of the Ukraine mobile company Kyivstar also contributed positively.

Capital expenditure decreased to NOK 1,460 million in the third quarter compared to NOK 2,169 million in the same period last year. Net interest-bearing liabilities at the end of the third quarter this year was NOK 21.6 billion, which is NOK 3.7 billion lower than at the end of the second quarter this year.

In Mobile, EBITDA increased by 23 per cent and operating profit by 33 per cent to NOK 2,601 million and NOK 1,507 respectively in the third quarter of 2003 compared to the same period last year. This growth came from international mobile operations. In Norway, the estimated market share measured in terms of number of mobile subscriptions was 57 per cent by the end of the third quarter this year.

In Fixed the EBITDA margin increased by four percentage points to 34 per cent while it increased by 4.5 percentage points to 37 per cent in Norway compared to the third quarter last year. The estimated market share for fixed network operations in Norway measured in traffic minutes was just above 69 per cent.

Broadcast reported a positive operating profit, compared to an operating loss in the third quarter of 2002.

“The results after the third quarter are pleasing and we are now beginning to see clear evidence of the effects of our programme for operational efficiency, Delta 4, which progresses better than

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originally expected. We are also pleased to note a good underlying development in both Fixed and Mobile. Telenor has a balance, which puts us in a solid position for further development. On basis of improved revenues and lower capex, the Board of Telenor ASA will consider to propose for the General Meeting to increase the share of net income to be paid as dividend and consider to repurchase shares,” says Telenor CEO Jon Fredrik Baksaas.

Contact:

Chief Press Spokesman Dag Melgaard, tel.: +47 67 89 26 71 or +47 901 92 000

To the editorial staff:

Joint press and analyst’s presentation

Telenor will present their financial results for the second quarter in a joint press and analyst’s presentation, which will be held in the auditorium at the Telenor Expo Visitor Centre at Fornebu on Thursday 30 October at 9:00 am local Norwegian time. Jon Fredrik Baksaas (CEO), Arve Johansen (Senior Executive Vice President) and Torstein Moland (Senior Executive Vice President/CFO) will present the results.

Via Internet

The press and analyst’s presentation will be streamed live via the Internet, and as a recording after the presentation at www.telenor.com/ir

International conference call

On the same day at 3:00 pm local Norwegian time, an international telephone conference pertaining to the second quarter results will take place, intended for investors and analysts. For more information about the conference call, please go to www.telenor.com/ir

Material

The second quarter report and the materials used during the press and analyst presentation will be available at www.telenor.com/ir

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(TELENOR LOGO)

The third quarter of 2003 showed a growth in revenues for the Telenor Group of 10% to NOK 13.5 billion. Profit before taxes and minority interests increased to NOK 2.0 billion.

Telenor ASA third quarter 2003

Page: 1

Telenor ASA third quarter of 2003

KEY POINTS FROM THE THIRD QUARTER OF 2003
COMPARED TO THE THIRD QUARTER OF 2002

•		Telenor’s revenues increased by 10% to NOK 13,491 million. Adjusted for the effect of businesses acquired and disposed of and changes in foreign exchange rates, the growth in revenues was approximately 9%.

•		Telenor’s EBITDA margin increased from 31% to 36% and EBITDA was NOK 4,892 million in the third quarter of 2003. The increase was primarily due to good underlying operations in the form of cost savings and increased revenues. The consolidation of Kyivstar also contributed to the increase.

•		Telenor’s consolidated operating profit increased from NOK 488 million to NOK 2,300 million. The increase was affected by the above-mentioned factors as well as write-downs in 2002 of NOK 614 million. Profit before taxes and minority interests increased by NOK 2.1 billion to NOK 2.0 billion.

•		Telenor’s program for improving the efficiency of operations, Delta 4, is progressing better than originally expected.

•		EBITDA in Mobile increased by 23% and operating profit by 33%, to NOK 2,601 million and NOK 1,507 million respectively. The EBITDA margin increased by 1.5 percentage points to 41% in the third quarter of 2003. The EBITDA margin in Telenor Mobile – Norway was 41% in the third quarter of 2003.

•		The EBITDA margin in Fixed increased by 4 percentage points to 34%. The EBITDA margin in Fixed – Norway increased by 4.5 percentage points to 37%.

•		Telenor’s market share of mobile services in Norway is estimated to be 57% at the end of the third quarter 2003 measured in number of subscriptions. The number of mobile subscriptions increased compared to the end of the second quarter. The market share in the fixed line operations was just above 69% measured in traffic minutes.

•		Broadcast had an operating profit compared to an operating loss in the third quarter of 2002.

•		Capital expenditure was reduced to NOK 1,460 million, compared to NOK 2,169 million in the third quarter of 2002.

•		Net interest-bearing liabilities were NOK 21.6 billion at the end of the third quarter of 2003, a decrease of NOK 3.7 billion since the second quarter.

Telenor ASA third quarter 2003

Page: 2

KEY FIGURES


	3rd quarter					First three quarters					Year
(NOK in millions)	2003		2002			2003		2002			2002

Revenues		13,491		12,210			39,320		35,784			48,826
Revenues excluding gains		13,469		12,209			39,218		35,666			48,668
Revenues excluding gains – growth (%)		10.3		21.9			10.0		20.0			19.9
EBITDA¹⁾		4,892		3,767			13,419		9,879			13,469
EBITDA/Revenues (%)		36.3		30.9			34.1		27.6			27.6
EBITDA excluding gains and losses ²⁾		4,886		3,778			13,518		9,859			13,458
Operating profit (loss)		2,300		488			5,387		1,781			(320	)
Operating profit/Revenues (%)		17.0		4.0			13.7		5.0			(0.7	)
Associated companies		62		(126	)		1,410		(304	)		(2,450	)
Profit (loss) before taxes and minority interests		2,005		(105	)		5,542		309			(5,136	)
Net income (loss)		1,281		(1,046	)		3,561		278			(4,298	)
Net interest-bearing liabilities							21,584		27,645			26,872
Investments:
- Capex ³⁾		1,460		2,169			4,004		6,209			8,889
- Investments in businesses⁴⁾		9		493			300		11,639			12,411

¹⁾ Operating profit before depreciation, amortization and write-downs of tangible and intangible assets.

²⁾ See table “special items” at the end of this report for further details.

³⁾ Capex is investments in tangible and intangible assets.

⁴⁾ Consists of acquisition of shares and participations including acquisition of subsidiaries and businesses not organized as separate companies.

The table below shows key figures adjusted for special items (gains and losses, expenses for workforce reductions, loss contracts, exit from activities and write-downs) ¹⁾


	3rd quarter								First three quarters									Year
(NOK in millions)	2003		2002			Growth			2003			2002			Growth			2002

Revenues		13,469		12,209			10.3	%		39,218			35,666			10.0	%		48,668			19,9	%
EBITDA		5,004		3,891			28.6	%		13,722			10,377			32.2	%		14,506			52,7	%
EBITDA/Revenues (%)		37,2		31,9						35.0			29.1						29.8
Operating profit		2,425		1,226			97.8	%		5,766			3,028			90.4	%		4,270			89,7	%
Operating profit/Revenues (%)		18,0		10,0						14.7			8.5						8.8
Associated companies		62		(52	)	nm				(98	)		(230	)	nm				(205	)	nm
Profit before taxes and minority interests		2,168		757			186.4	%		4,541			1,725			163.2	%		2,488		nm

¹⁾ See table “special items” at the end of this report for further details.

Telenor ASA third quarter 2003 Page: 3

KEY FIGURES FOR THE BUSINESS AREAS

With effect from 1 January 2003, Telenor has reorganized into three business areas, consisting of mobile operations (Mobile), fixed network operations Fixed) and TV operations (Broadcast), as well as other activities. The figures presented in this report for 2002 are restated to reflect the new structure, as if it had been in place as of 1 January 2002.

Revenues


	3rd quarter									First three quarters									Year
(NOK in millions)	2003			2002			Growth			2003			2002			Growth			2002			Growth

Mobile		6,322			5,320			18.8	%		17,499			14,680			19.2	%		20,346			62.0	%
Fixed		5,152			4,869			5.8	%		15,334			14,937			2.7	%		20,022			1.7	%
Broadcast		1,203			1,059			13.6	%		3,510			2,445			43.6	%		3,605			37.3	%
Other activities		2,495			2,605			(4.2	%)		8,014			8,753			(8.4	%)		11,640			(39.2	%)
Eliminations		(1,681	)		(1,643	)		2.3	%		(5,037	)		(5,031	)		0.1	%		(6,787	)		(14.8	%)

Total revenues		13,491			12,210			10.5	%		39,320			35,784			9.9	%		48,826			6.1	%

EBITDA


	3rd quarter											First three quarters											Year
(NOK in millions)	2003		Margin¹⁾			2002			Margin¹⁾			2003		Margin¹⁾			2002			Margin¹⁾			2002			Margin¹⁾

Mobile		2,601		41.1	%		2,107			39.6	%		7,073		40.4	%		5,398			36.8	%		7,482			36.8	%
Fixed		1,761		34.2	%		1,471			30.2	%		5,043		32.9	%		4,238			28.4	%		5,597			28.0	%
Broadcast		319		26.5	%		181			17.1	%		850		24.2	%		381			15.6	%		499			13.8	%
Other activities		186		7.5	%		90			3.5	%		453		5.7	%		(9	)	nm				(43	)	nm
Eliminations		25	nm				(82	)		5.0	%		—		0.0	%		(129	)		2.6	%		(66	)		1.0	%

Total EBITDA		4,892		18.3	%		3,767			15.6	%		13,419		34.1	%		9,879			27.6	%		13,469			27.6	%
Special items²⁾		112	nm				124		nm				303	nm				498		nm				1,037			1.0	%

EBITDA adjusted for special items		5,004		37.2	%		3,891			31.9	%		13,722		35.0	%		10,377			29.1	%		14,506			29.8	%

¹⁾ EBITDA as a percentage of total revenues.

²⁾ Gains, losses, expenses for workforce reductions, loss contracts and exit from activities. See table “special items” at the end of the report for further details.

³⁾ Margin is EBITDA adjusted as a percentage of revenues excluding gains.

Operating profit (loss)


	3rd quarter												First three quarters												Year
(NOK in millions)	2003			Margin¹⁾			2002			Margin¹⁾			2003			Margin¹⁾			2002			Margin¹⁾			2002			Margin¹⁾

Mobile		1,507			23.8	%		1,134			21.3	%		3,792			21.7	%		2,720			18.5	%		1,414			6.9	%
Fixed		792			15.4	%		9			0.2	%		1,963			12.8	%		594			4.0	%		731			3.7	%
Broadcast		63			5.2	%		(134	)	nm				49			1.4	%		(234	)	nm				(475	)	nm
Other units		(121	)	nm				(516	)	nm				(482	)	nm				(1,293	)	nm				(2,076	)	nm
Eliminations		59		nm				(5	)		0.3	%		65		nm				(6	)		0.1	%		86		nm

Total operating profit		2,300			8.6	%		488			2.0	%		5,387			13.7	%		1,781			5.0	%		(320	)	nm

¹⁾ Operating profit as a percentage of total revenues.

Telenor ASA third quarter 2003 Page: 4

BUSINESS AREAS
MOBILE


	3rd quarter				First three quarters				Year
(NOK in millions)	2003		2002		2003		2002		2002

External revenues
Telenor Mobil		2,511		2,481		7,288		7,094		9,441
Pannon GSM		1,408		1,250		3,904		3,160		4,502
DiGi.Com		825		648		2,290		1,980		2,702
GrameenPhone		424		386		1,102		1,210		1,589
Kyivstar		760		190		1,833		190		708
Other		38		36		103		96		137

Total external revenues		5,966		4,991		16,520		13,730		19,079

Internal revenues		356		329		979		950		1,267
Gains on disposal		—		—		—		—		—

Total revenues		6,322		5,320		17,499		14,680		20,346

		—		—		—		—
EBITDA		2,601		2,107		7,073		5,398		7,482
Depreciation and amortization		1,092		973		3,252		2,565		3,779
Write-downs		2		—		29		113		2,289

Operating profit		1,507		1,134		3,792		2,720		1,414

EBITDA/Total revenues (%)		41.1		39.6		40.4		36.8		36.8
Operating profit/Total revenues (%)		23.8		21.3		21.7		18.5		6.9
Investments:
- Capex		881		853		2,246		2,332		3,731
- Investments in businesses		—		481		5		8,431		8,894

•		Underlying improvements in profit and margins in the international mobile operations contributed to an increase in the EBITDA margin to 41.1% compared to 39.6% in the third quarter of 2002. At the same time revenues increased by 18.8%.

•		Kyivstar was consolidated from 1 September 2002 and Pannon GSM from 4 February 2002.

•		In the third quarter Telenor Mobile, together with eight leading independent European mobile operators formed a Mobile Alliance to provide seamless, enhanced voice and data solutions for business and residential customers across Europe.

Telenor ASA third quarter 2003 Page: 5

Telenor Mobil – Norway


	3rd quarter				First three quarters				Year
(NOK in millions)	2003		2002		2003		2002		2002

Subscriptions and connections		289		331		911		1,000		1,350
Traffic		1,457		1,497		4,120		4,190		5,489
SMS and content services		379		398		1,166		1,123		1,530
Other revenues		386		255		1,091		781		1,072

Total external revenues		2,511		2,481		7,288		7,094		9,441

Internal revenues		323		328		952		940		1,254
Gains on disposal		—		—		—		—		—

Total revenues		2,834		2,809		8,240		8,034		10,695

EBITDA		1,157		1,239		3,280		3,323		4,330
Depreciation and amortization		284		304		871		899		1,207
Write-downs		—		—		—		96		115

Operating profit		873		935		2,409		2,328		3,008

EBITDA/Total revenues (%)		40.8		44.1		39.8		41.4		40.5
Operating profit/Total revenues (%)		30.8		33.3		29.2		29.0		28.1
Capex		79		170		264		618		750
ARPU (GSM) – monthly (NOK)		354		359		343		348		346
No. of subscriptions (in thousand)						2,364		2,409		2,382

•		Increased revenues compared to the third quarter of 2002 was largely due to increased sales to other service providers and a slight increase in terminated traffic. Revenues from subscriptions and connections were reduced due to a reduction in the number of mobile subscriptions and changes in composition of the various subscription types. Revenues from SMS and content services, as well as outgoing voice traffic were reduced, primarily as a result of price reductions in the second quarter of 2003. Compared to the third quarter of 2002 internal revenues decreased due to the net reporting of Directory Enquiry services from the third quarter of 2003.

•		From 16 June 2003 Telenor Mobil introduced simplified pricing plans and lower average traffic fees. SMS prices were reduced as of 6 May 2003. These reductions are equivalent to approximately NOK 240 million in annual reduced revenues based on unchanged volumes. As of 1 July 2003 Telenor Mobil reduced end user prices further as a result of reduced prices of traffic terminated in NetCom’s network.

•		Average revenue per GSM subscription (ARPU) decreased compared to the third quarter of 2002 as a result of lower prices for traffic and SMS, the effect of net reporting as described above and changed composition of various subscription types. This was partially offset by increased traffic minutes and increased use of SMSs per subscription.

•		Competition was also strong in the third quarter. Increased marketing efforts by Telenor contributed to an increase in the number of subscriptions by 34,000 compared to the second quarter of 2003, of which 10,000 were GSM contract subscriptions. The estimated market share for GSM measured in the number of subscriptions at the end of the third quarter of 2003 was approximately 57% compared to 58% in the second quarter of 2003. Mobile penetration was estimated to approximately 89% and 87% in the second quarter of 2003.

•		The reduced EBITDA margin compared to the third quarter of 2002 was primarily a result of increased costs for marketing activities due to the competitive situation, higher traffic costs as a result of increased traffic to other mobile networks and changed subscription composition and price reductions. This was partially offset by

Telenor ASA third quarter 2003 Page: 6

		cost reductions in other areas, especially costs related to consultants and external personnel as well as salaries and personnel costs.

•		Depreciation and amortization decreased compared to the third quarter of 2002, primarily as a result of lower investments in recent years.

•		Reduced capital expenditure compared to the third quarter of 2002 was primarily due to lower investments in coverage and capacity in the GSM network. There was no significant capital expenditure related to UMTS expansion in 2003.

•		In July 2003 the Norwegian Post and Telecommunications Authority (NPT) recommended that the mobile operators in Norway reduce their termination charges by January 2004. For Telenor’s part this means a reduction from NOK 0.68 to NOK 0.63 per minute. Telenor has agreed to the recommendation under certain conditions.

Pannon GSM – Hungary


	3rd quarter				First three quarters				Year
(NOK in millions)	2003		2002		2003		2002		2002

Mobile related revenues		1,308		1,165		3,679		2,955		4,187
Other revenues		101		85		227		206		318

Total revenues		1,409		1,250		3,906		3,161		4,505

EBITDA		508		427		1,489		1,132		1,586
Depreciation and amortization		230		192		658		497		700
Write-downs		—		—		6		—		15

Operating profit		278		235		825		635		871

EBITDA/Total revenues (%)		36.1		34.2		38.1		35.8		35.2
Operating profit/Total revenues (%)		19.7		18.8		21.1		20.1		19.3
Capex		195		189		444		564		825
ARPU (GSM) – monthly (NOK)		170		177		163		181		180
No. of subscriptions (in thousand)						2,564		2,311		2,450

The table above shows figures from the time of consolidation as of 4 February 2002. Telenor’s ownership interest in Pannon GSM is 100%.

•		Pannon GSM’s estimated market share was 37% at the end of the third quarter of 2003, compared to 39% at the end of the third quarter of 2002. Compared to the third quarter of 2002, the estimated mobile penetration in Hungary increased from 63% to 75%.

•		The increased number of subscriptions contributed to a growth measured in local currency of 9% in revenues and 14% in EBITDA compared to the third quarter of 2002. The number of subscriptions increased by 11% from the third quarter of 2002. ARPU dropped by 6% compared to the third quarter of 2002, primarily due to price reductions and changes in the calling pattern.

•		Increased EBITDA compared to the third quarter of 2002 was related to increased revenues and lower provisions for Universal Services Funds.

•		Pannon GSM has increased its total number of subscriptions in a highly competitive market. Compared to the second quarter of 2003 the number of subscriptions increased by 50,000, of which 12,000 were GSM contract subscriptions. Related costs contributed to a reduction in the EBITDA margin compared to the second quarter of 2003.

•		Depreciation and amortization increased compared to the third quarter of 2002, as a result of higher investments in the subsequent quarters.

Telenor ASA third quarter 2003 Page: 7

•

In the first quarter of 2003, Pannon GSM was determined to have a significant market power in the national interconnection market. Pannon GSM has appealed the decision, which for the time being has been suspended until a final decision is made. The hearing before the Supreme Court in Hungary is scheduled for November 2003. The effect of an unfavorable decision in the case is difficult to quantify, but may lead to a requirement to reduce interconnection fees. As of 1 October 2003 Pannon GSM has reduced its interconnection fees by approximately 6%.

Digi.Com – Malaysia


	3rd quarter				First three quarters				Year
(NOK in millions)	2003		2002		2003		2002		2002

Mobile related revenues		707		531		1,961		1,646		2,273
Other revenues		119		119		333		343		442

Total revenues		826		650		2,294		1,989		2,715

EBITDA		319		222		909		707		1,022
Depreciation and amortization		202		179		579		358		579
Write-downs		5		—		15		13		12

Operating profit		112		43		315		336		431

EBITDA/Total revenues (%)		38.6		34.2		39.6		35.5		37.6
Operating profit/Total revenues (%)		13.6		6.6		13.7		16.9		15.9
Capex		240		302		513		832		1,457
ARPU (GSM) – monthly (NOK)		117		138		117		155		152
No. of subscriptions (100% in thousand)						2,055		1,454		1,616

Telenor’s ownership interest in DiGi.Com was 61.0% at the end of the third quarter of 2003.

•		DiGi.Com’s estimated market share was 19% at the end of the third quarter of 2003, compared to 17% at the end of the third quarter of 2002. Compared to the third quarter of 2002, the estimated mobile penetration in Malaysia increased from 34% to 45%.

•		Measured in local currency revenues increased by 35% compared to the third quarter of 2002, primarily as a result of an increased number of subscriptions. ARPU measured in local currency fell by 5% compared to the third quarter of 2002, primarily because new subscriptions on average generated lower traffic, and price reductions in the form of free calltime and loyalty programmes.

•		Increased EBITDA margin was due to the increased revenues and more efficient operations. Measured in local currency EBITDA increased by 52% compared to the third quarter of 2002, and by 44% measured in Norwegian Kroner.

•		Depreciation and amortization increased compared to the third quarter of 2002, as a result of higher capital expenditure in the subsequent quarters.

•		Capital expenditure (capex) increased compared to the level in the first half of 2003, primarily as a result of postponed activities in previous quarters. A further increase in the level of capital expenditure is expected in the fourth quarter.

•		DiGi.Com has been granted temporary relief to the end of the year from the required 25% level of free flow of shares on the Kuala Lumpur Stock Exchange.

Telenor ASA third quarter 2003 Page: 8

Kyivstar – Ukraine


	3rd quarter				First three quarters				Year
(NOK in millions)	2003		2002		2003		2002		2002

Mobile related revenues		744		183		1,783		183		681
Other revenues		16		7		50		7		27

Total revenues		760		190		1,833		190		708

EBITDA		465		118		1,066		118		403
Depreciation and amortization		90		26		248		26		98
Write-downs		—		—		—		—		—

Operating profit		375		92		818		92		305

EBITDA/Total revenues (%)		61.2		62.1		58.2		62.1		56.9
Operating profit/Total revenues (%)		49.3		48.4		44.6		48.4		43.1
Capex		290		94		720		94		329
ARPU (GSM) – monthly (NOK)		106		113		93		113		107
No. of subscriptions (100% in thousand)						2,512		1,659		1,856

The table above shows figures from the time of consolidation as of 1 September 2002. Telenor’s ownership interest at the end of the third quarter of 2003 was 55.35%. The discussion and analysis presented below for Kyivstar is based upon Kyivstar’s own profit and loss statement for the third quarter of 2002, adjusted to comply with Telenor’s accounting principles, as Kyivstar was not consolidated for the whole of the third quarter of 2002.

•		The number of subscriptions in Kyivstar increased by 51% compared to the third quarter of 2002. Kyivstar’s estimated market share was 48% at the end of the third quarter of 2003, compared to 49% at the end of the third quarter of 2002. The reduction was a result of increased competition, especially in the prepaid segment. Compared to the third quarter of 2002, the estimated mobile penetration in the Ukraine increased from 7% to 11%.

•		Measured in US Dollars, revenues in Kyivstar increased by 50% compared to the third quarter of 2002, as a result of an increase in the number of subscriptions. At the same time EBITDA increased by 48% measured in US Dollars. Increased revenues compared to the previous quarters in 2003 was related to more subscriptions and higher ARPU.

•		Despite strong growth in the number of subscriptions and the increased share of prepaid subscriptions, Kyivstar maintained ARPU at the same level as in the third quarter of 2002 measured in US Dollars. Compared to the second quarter of 2003 ARPU increased by 12% measured in US Dollars as a result of increased traffic minutes per subscription, primarily related to seasonal variations.

•		Continued high EBITDA margin reflected cost effective operations and a low level of sales and acquisition costs.

•		Depreciation and amortization measured in US Dollars increased compared to the third quarter of 2002, as a result of higher capital expenditure in the subsequent quarters.

•		From 19 September 2003 it is no longer permitted to charge own customers for incoming calls from other networks. In accordance with guidelines set by the authorities Kyivstar has entered into interconnection agreements with the fixed network operators. Overall this is a positive development for the mobile operators.

Telenor ASA third quarter 2003 Page: 9

GrameenPhone – Bangladesh


	3rd quarter				First three quarters				Year
(NOK in millions)	2003		2002		2003		2002		2002

Mobile related revenues		424		314		1,097		891		1,203
Other revenues¹⁾		—		72		6		319		386

Total revenues		424		386		1,103		1,210		1,589

EBITDA		274		208		692		584		757
Depreciation and amortization		43		35		117		114		126
Write-downs		—		—		—		—		—

Operating profit		231		173		575		470		631

EBITDA/Total revenues (%)		64.6		53.9		62.7		48.3		47.6
Operating profit/Total revenues (%)		54.5		44.8		52.1		38.8		39.7
Capex		77		96		240		203		342
ARPU (GSM) – monthly (NOK)		143		167		137		177		172
No. of subscriptions (100% in thousand)						1,047		704		769

The ownership interest was 46.4% and Telenor owned 51% of the voting shares at the end of the third quarter of 2003.


¹⁾		With effect from the third quarter of 2002, fees collected by GrameenPhone on behalf of the authorities have been deducted from revenues. With effect from the first quarter of 2003, sales of handsets in GrameenPhone are treated as commission sales, and are therefore excluded from revenues and cost of materials from this time. These effects contributed to low “other revenues” and cost of materials in 2003, but had no effect on profits.

•		GrameenPhone’s estimated market share was 67% at the end of the third quarter of 2003, compared to 71% at the end of the third quarter of 2002, while the estimated mobile penetration in Bangladesh increased from 0.7% to 1.2%.

•		Increased numbers of subscriptions contributed to an increase measured in local currency in mobile related revenues by 46%, compared to the third quarter of 2002, and by 35% measured in Norwegian Kroner.

•		Measured in Norwegian Kroner ARPU decreased by 14% while the reduction measured in local currency was only 1% compared to the third quarter of 2002, despite the strong growth in the number of prepaid subscriptions. ARPU increased compared to previous quarters in 2003.

•		Measured in local currency EBITDA increased by 42% compared to the third quarter of 2002, primarily due to increased mobile related revenues and more efficient operations. The increase was 32% measured in Norwegian Kroner.

Telenor ASA third quarter 2003 Page: 10

Other units in Mobile (including eliminations and amortization and write-downs of net excess values)¹⁾


	3rd quarter						First three quarters						Year
(NOK in millions)	2003			2002			2003			2002			2002

EBITDA		(122	)		(107	)		(363	)		(466	)		(616	)
Depreciation and amortization¹⁾		243			237			779			671			1,069
Write-downs²⁾		(3	)		—			8			4			2,147

Operating (loss)		(362	)		(344	)		(1,150	)		(1,141	)		(3,832	)

¹⁾ Includes amortization of Telenor’s net excess values by		239			203			713			568			935
²⁾ Includes write-downs of Telenor’s net excess values by		—			—			—			—			2,138
Capex		—			2			65			21			28


^*)		Net excess values are the differences between Telenor’s acquisition cost and Telenor’s share of equity at acquisition of subsidiaries.

•		Other units in Mobile include the mobile activities in Sweden, costs related to the management and administration of the company’s international mobile operations, and amortization and write-downs of Telenor’s net excess values.

•		The EBITDA loss increased somewhat in relation to the third quarter of 2002 primarily due to increased activity in Sweden. The EBITDA loss in Sweden was NOK 37 million compared to a loss of NOK 6 million in the third quarter of 2002. Net costs related to management and administration of the company’s international mobile portfolio decreased compared to the third quarter of 2002.

•		Increased amortization of Telenor’s net excess values compared to the third quarter of 2002 was due to the consolidation of Kyivstar and allocation of excess values in Pannon GSM completed as of 31 December 2002. This was partially offset by lower amortization of goodwill related to DiGi.Com, as a result of the write-down recorded as of 31 December 2002.

Associated companies and joint ventures in Mobile


	3rd quarter						First three quarters						Year
(NOK in millions)	2003			2002			2003			2002			2002

Telenors share of¹⁾
Net income after taxes		252			214			533			696			612
Amortization of Telenor’s net excess values		(157	)		(199	)		(457	)		(617	)		(798	)
Write-downs of Telenor’s excess values		—			(3	)		—			(3	)		(1,884	)
Gains on disposal of ownership interests		—			—			1,580			—			40

Net result from associated companies		95			12			1,656			76			(2,030	)


¹⁾		The figures are partly based on management’s estimates in connection with the preparation of the consolidated financial statements. The consolidated profit and loss statement contains only the line “net result from associated companies”. The table includes Telenor’s share of the results in Pannon GSM up to 4 February 2002 and Kyivstar up to 1 September 2002. Subsequent to these dates these companies are consolidated as subsidiaries. Cosmote was included as an associated company through April 2003. Net excess values are the differences between Telenor’s acquisition cost and Telenor’s share of equity at acquisition of associated companies.

Telenor ASA third quarter 2003 Page: 11

•		From the end of the second quarter there has been a significant growth in the overall subscription base for the associated companies. The growth was especially high in VimpelCom in Russia and DTAC in Thailand. In Sonofon in Denmark however, there was a reduction in the number of subscriptions due to strong competition.

•		The reduction in profits due to companies that are no longer associated companies was more than offset by the positive development in several of the remaining associated companies, primarily VimpelCom.

•		Reduced amortization of Telenor’s net excess values compared to the third quarter of 2002 was due to write-downs made in 2002 and to associated companies that have become subsidiaries.

FIXED


	3rd quarter					First three quarters					Year
(NOK in millions)	2003			2002		2003			2002		2002

External revenues
Norway		4,087			4,054		12,349			12,354		16,532
Sweden		393			220		1,086			761		983
Russia		204			167		556			500		677
Other countries		40			35		118			108		146

Total external revenues		4,724			4,476		14,109			13,723		18,338

Internal revenues		428			393		1,224			1,214		1,670
Gains on disposal		—			—		1			—		14

Total revenues		5,152			4,869		15,334			14,937		20,022

		—			—		—			—
EBITDA		1,761			1,471		5,043			4,238		5,597
Depreciation and amortization ¹⁾		969			1,111		3,073			3,275		4,366
Write-downs ²⁾		—			351		7			369		500

Operating profit		792			9		1,963			594		731

¹⁾ Includes amortization of Telenor’s net excess values by		(74	)		33		(52	)		128		157
²⁾ Includes write-downs of Telenor’s net excess values by		—			89		—			89		160
EBITDA/Total revenues (%)		34.2			30.2		32.9			28.4		28.0
Operating profit/Total revenues (%)		15.4			0.2		12.8			4.0		3.7
Investments:
- Capex		438			978		1,283			2,472		3,260
- Investments in businesses		1			—		218			12		270

•

Reduced operating expenses contributed to the increase in the EBITDA margin to 34.2% while at the same time capital expenditure was significantly reduced compared to the third quarter of 2002.

Telenor ASA third quarter 2003 Page: 12

Fixed – Norway


	3rd quarter				First three quarters				Year
(NOK in millions)	2003		2002		2003		2002		2002

Subscriptions and connections – PSTN and ISDN		1,069		1,132		3,269		3,251		4,361
ADSL and Internet subscriptions		277		187		766		533		737
Internet traffic		126		147		432		512		690
Other traffic		1,204		1,326		3,837		4,175		5,564

Total PSTN/ISDN, ADSL and Internet		2,676		2,792		8,304		8,471		11,352

Leased lines		88		97		249		267		341
Datacommunication (frame relay, atm, lan-lan, datapak)		209		197		618		625		828
Managed services		168		171		535		487		679
Other retail products		115		67		303		277		388

Total other retail revenues		580		532		1,705		1,656		2,236

Total retail revenues		3,256		3,324		10,009		10,127		13,588

Domestic interconnect		227		163		635		542		736
International interconnect		94		94		255		258		340
Transit traffic		275		265		778		797		1,027
Leased lines		158		149		474		492		647
Other wholesale revenues		77		59		198		138		194

Total wholesale market revenues		831		730		2,340		2,227		2,944

Total external revenues		4,087		4,054		12,349		12,354		16,532

Internal revenues		446		412		1,279		1,265		1,749
Gains on disposal		—		—		1		—		—

Total revenues – Norway		4,533		4,466		13,629		13,619		18,281

EBITDA		1,677		1,450		4,904		4,162		5,489
Depreciation and amortization ¹⁾		940		1,010		2,811		2,929		3,919
Write-downs ²⁾		—		349		—		367		413

Operating profit		737		91		2,093		866		1,157

¹⁾ Includes amortization of Telenor’s net excess values by		6		7		7		19		23
²⁾ Includes write-downs of Telenor’s net excess values by		—		89		—		89		89
EBITDA/Total revenues (%)		37.0		32.5		36.0		30.6		30.0
Operating profit/Total revenues (%)		16.3		2.0		15.4		6.4		6.3
Investments:
- Capex		365		902		1,086		2,203		2,919
- Investments in businesses		—		—		—		10		11

Telenor ASA third quarter 2003 Page: 13

•		External revenues from PSTN and ISDN subscriptions and connections were reduced compared to the third quarter of 2002 due to the transition to wholesale of subscriptions and a drop in the number of subscriptions in the market. Increased external revenues from ADSL and Internet subscriptions was due to the growth in the number of ADSL subscriptions. The number of ADSL subscriptions (residential and business) at the end of the third quarter of 2003 was approximately 150,000, an increase of nearly 87,000 compared to the third quarter of 2002 and 16,000 compared to the end of the second quarter of 2003. Telenor maintained its market leading position.

•		External traffic revenues were lower than in the third quarter of 2002 due to an approximately 7% decline in total traffic measured in minutes in Telenor’s network and reduced market share. The reduction in total traffic resulted from the migration of fixed voice traffic to mobile traffic and of data traffic from dial-up Internet to ADSL. Telenor’s market share measured in traffic minutes was 69% at the end of the third quarter of 2003 compared to 73% at the end of the third quarter of 2002 and 70% at the end of the previous quarter.

•		Increased external wholesale revenues was primarily due to wholesale of subscriptions, increased national interconnection traffic and increased sales of operator access.

•		Increased EBITDA compared to the third quarter of 2002 was primarily related to an increased contribution margin (revenues less cost of materials and traffic charges) and reduced operating expenses. The increased contribution margin was related to revenue growth and change in the product mix towards products with higher margins. In the third quarter of 2003 provisions for workforce reductions initiated in 2002 totalling NOK 28 million were reversed, while in the third quarter of 2002 NOK 66 million was expensed, primarily related to loss contracts within operating services.

•		In the third quarter of 2002 write-downs totalling NOK 349 million were made, mainly within operating services. Depreciation and amortization was lower than in the third quarter of 2002 due to low levels of investment in 2002 and 2003, in addition to the effect of write-downs made in 2002. With effect from 1 July 2003 Telenor reduced the depreciation period for a billing system due to the decision to invest in a new system. This contributed to increased depreciation of NOK 25 million in the third quarter of 2003.

•		The reduction in capital expenditure compared to the third quarter of 2002 was due to the efficient utilization of earlier investments, lower demand for fixed network services and lower equipment prices.

Fixed – Sweden


	3rd quarter						First three quarters						Year
(NOK in millions)	2003			2002			2003			2002			2002

External revenues		393			220			1,086			761			983
Internal revenues		19			18			62			60			76
Gains on disposal		—			—			—			—			14

Total revenues		412			238			1,148			821			1,073

EBITDA		14			(28	)		(48	)		(74	)		(100	)
Depreciation and amortization ¹⁾		(25	)		46			105			175			218
Write-downs ¹⁾		—			—			4			—			15

Operating profit (loss)		39			(74	)		(157	)		(249	)		(333	)

¹⁾ Include amortization and write-downs of Telenor’s net excess values by		(97	)		1			(108	)		30			31
Investments:
- Capex		7			20			26			68			84
- Investments in businesses		—			—			—			—			257

Telenor ASA third quarter 2003 Page: 14

•		The activities in Fixed – Sweden are significantly different compared to 2002. As of 31 December 2002, the customer base in Telenordia Privat AB was sold in exchange for 37.2% of the shares in the listed Swedish company Glocalnet AB. In December 2002 Telenor acquired 90% of the listed Swedish company Utfors AB, and the company was consolidated as a subsidiary as of 31 December 2002.

•		In addition to the effect of the consolidation of Utfors revenues increased compared to the third quarter of 2002 due to new wholesale agreements with the associated company Glocalnet AB. In the third quarter of 2002, Telenordia Privat had external revenues of NOK 57 million and an EBITDA loss of NOK 18 million.

•		In the third quarter of 2003 the allocation of net excess values related to the acquisition of Utfors AB was finalized. This resulted in negative goodwill. Part of this negative goodwill was related to expected losses at the time of the acquisition, and is taken to income in line with the losses. The rest of the negative goodwill is recognized as income over 14 years, and is included in depreciation and amortization.

Fixed – Russia


	3rd quarter				First three quarters				Year
(NOK in millions)	2003		2002		2003		2002		2002

External revenues		204		167		556		500		677
Internal revenues		—		2		2		4		5
Gains on disposal		—		—		—		—		—

Total revenues		204		169		558		504		682

		—		—		—		—
EBITDA		79		59		207		170		228
Depreciation and amortization ¹⁾		42		37		118		118		158
Write-downs		—		2		—		2		—

Operating profit		37		20		89		50		70

¹⁾ Include amortization of Telenor’s net excess values by		17		17		49		56		73
EBITDA/Total revenues (%)		38.7		34.9		37.1		33.7		33.4
Operating profit/Total revenues (%)		18.1		11.8		15.9		9.9		10.3
Investments:
- Capex		55		39		141		145		181
- Investments in businesses		1		—		218		2		2

•		Measured in Norwegian Kroner, revenues in Fixed – Russia increased by 21% compared to the third quarter of 2002, which was an increase of 29% measured in US Dollars. The increase was related to increased voice traffic, increased number of ASDL subscriptions and increased sales of high-speed connections.

•		The increase in the operating profit was primarily related to the growth in revenues.

•		In the third quarter an agreement was entered into regarding the sale of the shares in Comincom in exchange for a 19.5% stake in the listed company Golden Telecom, Inc. The transaction is, among other things, dependent on approval by the authorities in both the USA and Russia. The transaction is expected to be completed this year.

Fixed – other countries

•

Fixed – Other Countries comprises activities in the Czech Republic and Slovakia. Revenues increased to NOK 41 million compared to NOK 36 million in the third quarter of 2002. EBITDA increased by NOK 10 million to zero in the third quarter of 2003.

Telenor ASA third quarter 2003 Page: 15

BROADCAST


	3rd quarter					First three quarters					Year
(NOK in millions)	2003		2002			2003		2002			2002

External revenues
Distribution		945		778			2,728		1,303			2,148
Transmission		202		211			609		882			1,110
Other		8		18			31		83			108

Total external revenues		1,155		1,007			3,368		2,268			3,366

Internal revenues		39		52			122		177			241
Gains on disposal		9		—			20		—			(2	)

Total revenues		1,203		1,059			3,510		2,445			3,605

		—		—			—		—
EBITDA		319		181			850		381			499
Depreciation and amortization ¹⁾		251		297			792		595			844
Write-downs ¹⁾		5		18			9		20			130

Operating profit (loss)		63		(134	)		49		(234	)		(475	)

¹⁾ Include amortization of Telenor’s net excess values by		67		84			194		121			161
EBITDA/Total revenues (%)		26.5		17.1			24.2		15.6			13.8
Investments:
- Capex		56		74			119		215			384
- Investments in businesses		4		8			14		2,377			2,385

•

Canal Digital was consolidated as of 1 July 2002. The figures for the third quarter in all material respects include the same operations as for the third quarter of 2002, and reflects the development in these operations.

Telenor ASA third quarter 2003 Page: 16

Broadcast – Distribution


	3rd quarter						First three quarters						Year
(NOK in millions)	2003			2002			2003			2002			2002

Satellite dish		636			515			1,826			515			1,099
Cable-TV		226			191			655			549			742
Small antenna TV-networks		83			77			241			187			252
Other		—			(5	)		6			52			55

Total external revenues		945			778			2,728			1,303			2,148

Internal revenues		3			1			9			4			16
Gains on disposal		9			—			20			—			(2	)

Total revenues		957			779			2,757			1,307			2,162

EBITDA		174			45			458			(5	)		19
Depreciation and amortization ¹⁾		189			226			578			372			541
Write-downs ¹⁾		—			7			2			8			56

Operating (loss)		(15	)		(188	)		(122	)		(385	)		(578	)

¹⁾ Include amortization of Telenor’s net excess values by		67			84			194			120			160
EBITDA/Total revenues (%)		18.2			5.8			16.6			(0.4	)		0.9
Investments:
- Capex		20			43			54			130			235
- Investments in businesses		—			—			—			2,369			2,369

•		Revenues in Distribution increased compared to the third quarter of 2002 due primarily to more subscriptions, foreign currency fluctuations, price increases for cable-TV, and changes in accruals of card fees for satellite dish which showed an effect between the third and fourth quarter in 2002. Gains on disposals were related to sales of local cable TV-networks.

•		EBITDA in Distribution increased compared to the third quarter of 2002 as a result of increased revenues and the effects of restructuring measures implemented in the fourth quarter of 2002. Towards the end of the third quarter customer acquisition costs increased, and is expected to increase further in the fourth quarter. The reduced EBITDA compared to the second quarter of 2003 was related to the fact that the second quarter was positively affected by items relating to previous periods.

•		A restructuring and workforce reduction will be carried out in Distribution in the fourth quarter.

•		Reduced depreciation and amortization compared to the third quarter of 2002 was mainly due to the reallocation of excess values in Canal Digital in the fourth quarter of 2002.

•		The reduction in capital expenditure compared to the third quarter of 2002 was related to the reduced investments in the network upgrade within cable-TV operations and the development of platforms within interactive TV.

Telenor ASA third quarter 2003 Page: 17

Broadcast – Transmission


	3rd quarter				First three quarters				Year
(NOK in millions)	2003		2002		2003		2002		2002

External revenues		202		211		609		882		1,110
Internal revenues		111		147		351		238		347
Gains on disposal		—		—		—		—		—

Total revenues		313		358		960		1,120		1,457

EBITDA		144		148		410		454		581
Depreciation and amortization		60		70		206		213		290
Write-downs		5		11		5		12		41

Operating profit		79		67		199		229		250

EBITDA/Total revenues (%)		46.0		41.3		42.7		40.5		39.9
Operating profit/Total revenues (%)		25.2		18.7		20.7		20.4		17.2
Investments:
- Capex		25		30		51		80		115
- Investments in businesses		—		—		—		—		—

•		Reduced revenues in Transmission compared to the third quarter of 2002 was related to the reduced sales of analogue transmissions via satellite.

•		Increased operating profit in Transmission compared to the third quarter 2002 was related to reduced prices on the leasing of satellite capacity, costs reductions and lower depreciation and write-downs, which more than offset reduced revenues. Reduced depreciation and amortization was a result of fully depreciated fixed assets.

Broadcast – Other

•

Reduced external revenues in Broadcast – Other compared to the third quarter of 2002 was related to lower sales of access equipment in Conax.

Telenor ASA third quarter 2003 Page: 18

OTHER ACTIVITIES
EDB BUSINESS PARTNER


	3rd quarter					First three quarters						Year
(NOK in millions)	2003			2002		2003			2002			2002

External revenues		768			741		2,380			2,466			3,383
Internal revenues		240			260		777			748			955
Gains on disposal		—			—		19			1			3

Total revenues		1,008			1,001		3,176			3,215			4,341

		—			—		—			—
EBITDA		11			127		222			266			348
Depreciation and amortization		96			96		277			287			393
Write-downs		6			—		17			4			364

Operating profit (loss)		(91	)		31		(72	)		(25	)		(409	)

EBITDA/Total revenues (%)		1.1			12.7		7.0			8.3			8.0
Investments:
- Capex		17			50		145			138			167
- Investments in businesses		—			1		95			6			88

Operations that were transferred to Itworks AS are not included in the figures for EDB Business Partner. This creates a divergence in relation to the figures presented by EDB Business Partner ASA for 2002.

•		Revenues were on level with the third quarter of 2002. This reflects a relatively flat market development. There was growth within the Operations area related to sales of outsourcing services, while Bank & Finance experienced reductions in software sales. Revenues within Telecom increased as a result of acquired operations. The Consultancy area was wound up as of 1 July 2003. Parts of the operation have been transferred to the other business areas within EDB Business Partner.

•		In the third quarter of 2003 provisions of NOK 142 million were made for costs for workforce reductions and loss contracts, including estimated losses on property lease contracts. There were no similar charges in the third quarter of 2002. The operating margin (operating profit in per cent of revenues) before the above-mentioned provisions increased as a result of considerable cost savings. In the third quarter of 2003 the Bank & Finance area was reorganized so as to create a more market-oriented organization.

•		Write-downs of goodwill of NOK 6 million were recorded within Bank & Finance with respect to two smaller items.

•		Capital expenditure was low in the third quarter of 2003 as a consequence of a generally low level of investment and because two large investments within the Operation area were completed during the first half of the year.

Telenor ASA third quarter 2003 Page: 19

OTHER BUSINESS UNITS


Revenues	3rd quarter						First three quarters						Year
(NOK in millions)	2003			2002			2003			2002			2002

Satellite Services		499			507			1,539			1,712			2,153
Satellite Networks		136			131			404			458			611
Teleservice		175			176			538			578			756
Nextra International		3			173			256			565			725
Software Services		13			17			48			86			185
Itworks		—			—			—			188			188
Other		133			99			364			296			438
Eliminations		(3	)		(5	)		(8	)		(14	)		(16	)

Revenues		956			1,098			3,141			3,869			5,040

Gains on disposal		2			—			16			—			—

Total revenues		958			1,098			3,157			3,869			5,040

EBITDA		111			29			176			92			178
Depreciation and amortization ¹⁾		108			125			344			443			582
Write-downs ¹⁾		—			295			14			293			332

Operating profit (loss)		3			(391	)		(182	)		(644	)		(736	)

¹⁾ Include amortization and write downs of Telenor’s net excess values by		9			14			29			45			99
Operating profit (loss)

Satellite Services		55			30			174			90			100
Satellite Networks		3			6			—			27			39
Teleservice		(12	)		(18	)		(2	)		(110	)		(93	)
Nextra International		(15	)		(50	)		(254	)		(157	)		(260	)
Software Services		(25	)		(340	)		(83	)		(415	)		(372	)
Itworks		—			—			—			(22	)		(23	)
Other		(3	)		(19	)		(17	)		(57	)		(127	)

Total operating profit (loss)		3			(391	)		(182	)		(644	)		(736	)

Investments:
- Capex		39			37			139			136			301
- Investments in businesses		1			2			17			755			771

Satellite Services

•		Reduced revenues in Satellite Services compared to the third quarter of 2002 were primarily due to the strengthening of the Norwegian Krone against the US Dollar and reduced sales of low-margin services, partially offset by increased sales of high-speed data traffic and launching of new products.

•		Increased operating profit compared to the third quarter of 2002 was related to increased sales of high margin products, the discontinuance of costs related to the liquidated Eik-cooperation, as well as the exploitation of synergy effects following the coordination of units.

Telenor ASA third quarter 2003 Page: 20

Satellite Networks

•		Increased revenues in Satellite Networks compared to the third quarter of 2002 was primarily related to increased sales connected to contracts in the Norwegian and Slovakian satellite operations, which were partially offset by reduced revenues in Taide and reduced activity in Poland in 2003.

•		The reduced operating profit compared to the third quarter of 2002 was related to costs connected to the winding up of operations in Poland. Taking this into consideration, the development was positive in terms of increased revenues and lower operating expenses.

Teleservice

•		Reduced revenues from directory enquiry services compared to the second quarter of 2002 was a consequence of a reduced market share and a general decline in demand for directory enquiry services which were offset by increased revenues from new units in Sweden.

•		The reduced operating loss compared to the third quarter of 2002 was largely related to lower expenses for workforce reductions. In the third quarter of 2002 a provision of NOK 40 million was made for workforce reductions compared to NOK 18 million during the third quarter of 2003.

Software Services

•		Reduced revenues compared to the third quarter of 2002 was related to lower sales of software and consultancy services, partly a consequence of the reduced scope of the operation.

•		In the third quarter of 2002 write-downs of NOK 295 million on CA software were made. Apart from this write-down, the operating loss was reduced compared to the third quarter of 2002 due to lower costs connected to reduced activities and reduced amortizations due to the write-downs in 2002.

CORPORATE FUNCTIONS AND GROUP ACTIVITIES


	3rd quarter						First three quarters						Year
(NOK in millions)	2003			2002			2003			2002			2002

External revenues		46			47			158			170			247
Internal revenues		472			458			1,477			1,383			1,869
Gains on disposal		11			1			46			116			143

Total revenues		529			506			1,681			1,669			2,259

EBITDA		64			(66	)		55			(367	)		(569	)
Depreciation and amortization		97			90			283			257			362
Write-downs		—			—			—			—			—

Operating (loss)		(33	)		(156	)		(228	)		(624	)		(931	)

Investments:
- Capex		36			198			91			938			1,064
- Investments in businesses		4			(1	)		10			56			56

•		Increased internal revenues from sales of services related to the centralization of accounting functions and moving into new buildings with expanded services were partially offset by reduced revenues from internal outsourcing of personnel since this operation was transferred to Mobile in the third quarter of 2003.

•		EBITDA increased as a consequence of lower costs in strategic group projects and general cost reductions, reduced expenses for lease of properties and increased gains on sale of properties.

•		Increased depreciation and amortization and reduced capital expenditure were related to investments in new buildings in 2002.

Telenor ASA third quarter 2003 Page: 21

OTHER PROFIT AND LOSS ITEMS FOR THE GROUP

Depreciation, amortization and write-downs


	3rd quarter				First three quarters				Year
(NOK in millions)	2003		2002		2003		2002		2002

Depreciation of tangible assets		2,156		2,170		6,557		6,028		8,272
Amortization of goodwill ^*)		119		259		524		743		1,002
Amortization of other intangible assets ^*)		304		236		875		578		962

Total depreciation and amortization		2,579		2,665		7,956		7,349		10,236
Write-downs of tangible and other intangible assets		7		576		60		708		921
Write-downs of goodwill		6		38		16		41		2,632

Total write-downs		13		614		76		749		3,553

Total depreciation, amortization and write-downs		2,592		3,279		8,032		8,098		13,789

^*) See specification below.

•

Compared to the third quarter of 2002 depreciation of tangible assets in the Mobile business area increased by NOK 55 million. The international mobile operations had an increase of NOK 101 million primarily as a result of investments in the subsequent quarters. Mobile’s other activities had a reduction as a consequence of lower investments in the subsequent quarters and because some fixed assets were fully depreciated. In the Fixed business area there was a reduction of NOK 48 million. This reduction was related to write-downs undertaken in 2002 and lower investments in the subsequent quarters, which were partially offset by the consolidation of Utfors AB and shorter estimated useful life on certain fixed assets. In the Broadcast business area there was a reduction of NOK 28 million, which was primarily related to lower investments in the subsequent quarters and that some fixed assets were fully depreciated.

^*) Specification of amortization of goodwill and other intangible assets (including amortization of Telenor’s net excess values)¹⁾


	3rd quarter					First three quarters					Year
(NOK in millions)	2003			2002		2003			2002		2002

DiGi.Com		34			73		99			235		304
Pannon GSM		227			172		672			465		765
Kyivstar		65			15		185			15		87
Other Mobile		13			14		39			40		58

Total Mobile		339			274		995			755		1,214
Fixed		(59	)		37		(13	)		147		193
Broadcast		71			85		204			120		165
EDB Business Partner		40			41		115			123		169
Other units		32			58		98			176		223

Total		423			495		1,399			1,321		1,964

¹⁾ Net excess values are the differences between Telenor’s acquisition cost and Telenor’s share of equity at acquisition of subsidiaries.

Telenor ASA third quarter 2003 Page: 22

•

Reduced amortization of goodwill and other intangible assets in DiGi.Com compared to the third quarter of 2002 was related to the write-down of goodwill undertaken in the fourth quarter of 2002. The increase in Pannon GSM was related to the allocation of excess values completed as of 31 December 2002. Kyivstar was consolidated as of 1 September 2002, and consequently amortization in the third quarter of 2003 was higher than in the same quarter in 2002. In Fixed negative goodwill was taken to income in connection with the completion of the allocation of net excess values of Utfors AB in the third quarter of 2003.

Associated companies


	3rd quarter						First three quarters						Year
(NOK in millions)	2003			2002			2003			2002			2002

Telenors share of ¹⁾
Net income after taxes		222			165			394			443			341
Amortization of Telenor’s net excess values		(160	)		(217	)		(481	)		(673	)		(862	)
Write-downs of Telenor’s excess values		—			(74	)		(11	)		(74	)		(1,965	)
Gains on disposal of ownership interests		—			—			1,508			—			36

Net result from associated companies		62			(126	)		1,410			(304	)		(2,450	)


¹⁾		The figures are partly based on management’s estimates in connection with the preparation of the consolidated financial statements. The consolidated profit and loss statement contains only the line “net result from associated companies”. Net excess values are the differences between Telenor’s acquisition cost and Telenor’s share of equity at acquisition of associated companies

•		An increased net income after taxes from associated companies compared to the third quarter of 2002 was due to an improved profitability in several companies, of which VimpelCom accounted for the largest improvement.

•		Reduced amortization of Telenor’s net excess values on associated companies compared to the third quarter of 2002 was related to write-downs in 2002 and companies which have become subsidiaries.

•		Write-downs of excess values in the third quarter of 2002 was primarily related to Otrum.

•		In October 2003 Telenor was released from the financial guarantee to Svensk Eksportkreditt of SEK 331 million related to the associated company Bravida.

Financial items


	3rd quarter						First three quarters						Year
(NOK in millions)	2003			2002			2003			2002			2002

Financial income		84			151			413			417			567
Financial expenses		(444	)		(610	)		(1,595	)		(1,326	)		(1,833	)
Net foreign currency gain (loss)		41			42			55			(164	)		(311	)
Net gains (losses) and write-downs		(38	)		(50	)		(128	)		(95	)		(789	)

Net financial items		(357	)		(467	)		(1,255	)		(1,168	)		(2,366	)
Gross interest expenses		(437	)		(637	)		(1,593	)		(1,437	)		(1,901	)
Net interest expenses		(342	)		(516	)		(1,258	)		(1,089	)		(1,425	)

•		Reduced financial income compared to the third quarter of 2002 was to a large extent due to the lower interest rate in Norway.

•		In the third quarter of 2003 the financial expenses included a reversal of previously expensed interest of NOK 73 million connected to the dispute with WR Com Enterprises Ltd., discussed under “Disputes” below. In the third quarter of 2002 and 2003 approximately NOK 75 million was expensed as interest on the tax claim related to Sonofon, discussed under “Taxes” below. Telenor chose as of 30 September 2003 to pay the tax

Telenor ASA third quarter 2003 Page: 23

		claim instead of continuing to provide the guarantee for the claim. Telenor will therefore in subsequent quarters not expense 12 per cent as interest on the claim. Capitalized interest was reduced as a result of general lower investment levels.

•		Reduced interest expenses compared to the third quarter 2002 were due to lower debt. In addition we are starting to see the effects of lower interest rates.

•		Net losses and write-downs in the third quarter 2003 were primarily related to write-downs of shares in Venture companies.

Taxes

•		The income tax rate in Norway is 28%. The effective tax rate for the Telenor group for 2003 is estimated at 32% of profit before taxes and minority interests. The estimated effective tax rate for 2003 increased from 31% in the second quarter of 2003. The settlement with WR Com Enterprises Ltd., discussed below, contributed to reducing estimated tax, which was more than offset by other changes in estimates.

•		To a large extent, Telenor has not made provisions for tax on retained profits in subsidiaries outside of Norway. If dividends are paid from some of these companies it will result in tax on such dividends.

•		The effective tax rate for Telenor is higher than the nominal tax rate of 28% due to losses from associated companies and subsidiaries abroad, as well as the amortization of goodwill where deferred tax assets have not been recognized. In 2003 the estimated tax rate was reduced due to the tax loss that is expected to be realized upon liquidation of Telenor Business Solutions UK subsequent to the sale of the operations in the company in July 2003. The estimated tax rate is based on assumptions of the profit for the year, and the actual tax rate for the year may differ from the estimated rate, particularly for changes in the estimates related to the above-mentioned factors, as well as other special conditions. In previous years, the tax rate for Telenor has also been affected by the realization of considerable tax losses. As a result of the challenge of the tax return for 2001, Telenor made a provision and increased its tax expenses in the third quarter of 2002 by NOK 2.4 billion, as such amount was recorded as a reduction in taxes in 2001.

BALANCE SHEET AND CASH FLOW

•		The reduction in total assets compared to the end of the last quarter was primarily related to depreciation and amortization of fixed assets and intangible assets beyond capital expenditure and a reduction in deferred tax assets as a consequence of the tax expense on the third quarter result.

•		Net interest-bearing liabilities were reduced by NOK 3.7 billion from the end of the second quarter to NOK 21.6 billion at the end of the third quarter of 2003. The reduction was primarily due to cash flow from operations in excess of investments. The settlement with WR Com Enterprises Ltd. reduced interest-bearing liabilities by approximately NOK 0.3 billion. Currency fluctuations decreased net interest-bearing liabilities measured in Norwegian Kroner by approximately NOK 0.2 billion compared to the second quarter of 2003.

•		In 2002 Telenor chose to provide a parent company guarantee for a tax claim of NOK 2.4 billion. Due to the significant reduction in short-term interest rates and no corresponding reduction in interest rates on overdue payments, Telenor decided to pay this tax claim on 30 September 2003. The decision to pay the tax claim carries no indication that Telenor has not changed the view that the tax return for 2001 was correct in all respects. The payment has not affected net interest-bearing liabilities, but has reduced gross interest-bearing liabilities and liquid assets.

•		In the third quarter of 2003 the allocation of net excess values related to the acquisition of the remaining 25% of the shares in Comincom and the acquisition of Utfors AB was finalized. For Comincom the increase in net excess values beyond goodwill has been charged directly to equity by NOK 35 million in accordance with Norwegian GAAP.

•		Translation adjustments have resulted in a net increase in equity during the third quarter of NOK 252 million, which was primarily related to Pannon GSM as a consequence of the strengthening of the Hungarian Forint against the Norwegian Krone during the quarter.

Telenor ASA third quarter 2003 Page: 24

DISPUTES

•		In October Telenor agreed to a settlement with WR Com Enterprises Ltd. which entailed Telenor paying WR Com Enterprises Ltd. a total of EUR 33.6 million. The dispute was discussed in note 24 of the annual report for 2002. The settlement stipulates that all legal proceedings are terminated and the previous arrest of Telenor’s shares in Cosmote shall be rescinded. As a result of the settlement Telenor reversed accruals of approximately NOK 200 million after taxes, primarily in the profit and loss line items for tax and interest expenses.

•		In October Telenor received a claim from Sense Communications ASA for repayment for alleged overcharging in the service provider agreement for the period 2000 to 2002. This claim has not yet been quantified. Telenor disputes the claim.

US GAAP

•

Telenor had net income in accordance with Generally Accepted Accounting Principles in the United States (US GAAP) of NOK 4,177 million in the first nine months of 2003 compared to net income in accordance with Norwegian accounting principles of NOK 3,561 million. The main reason for the difference is that goodwill is not amortized according to US GAAP, but is subject to an annual impairment test.

OUTLOOK

•		For Telenor as a whole, continued growth is expected in the fourth quarter in revenues and a slight improvement in the EBITDA margin compared to the fourth quarter of 2002. For the year as a whole, this will mean a considerable improvement both in EBITDA and in the operating profit compared to 2002, excluding special items.

•		For 2003 the level of capital expenditure is expected to be significantly lower than in 2002, in spite of the consolidation of Kyivstar, Canal Digital and Pannon GSM. Increased results and lower capital expenditure are expected to give a significant improvement in Telenor’s cash flow from operations (EBITDA-Capex) for 2003 compared to 2002.

•		For the Norwegian fixed network operations the EBITDA margin in the fourth quarter is expected to be in line with the first nine months of the year. Telenor expects that increased revenues from ADSL will be offset by reduced revenues from traffic and Internet. At the same time, it is expected that wholesale of subscriptions will result in reduced revenues as a result of a shift from end user to wholesale revenues, while other services are expected to have a moderate growth.

•		For the Norwegian mobile activities continued strong competitive pressure is expected. Telenor will emphasize securing our current market position. The margin development will in the short run be influenced by the competition and the growth in the market.

•		Telenor will continue to focus on increasing efficiency.

•		For Telenor’s international operations, continued growth in revenues is expected in the fourth quarter compared to the fourth quarter of 2002, but this growth is expected to slow down compared to the growth in the first nine months of 2003 as against the same period in 2002. The markets in some of Telenor’s international mobile companies are beginning to mature, and the growth is no longer influenced by the consolidation of new operations. In the separate markets there are different growth and competition, and Telenor seeks to balance the focus on profitability and market share. Compared to the fourth quarter of 2002, it is expected that in the fourth quarter of 2003 the EBITDA margin will improve, but that it will stabilize at a level corresponding approximately to the first nine months of the year.

•		Based on improved earnings and lower investments, the Board of Telenor will consider to propose for the General Meeting that an increased share of net income is paid as dividend and will consider to repurchase shares according to an authority provided by the General Meeting.

The unaudited interim consolidated financial statements according to Norwegian accounting principles have been prepared on a basis consistent with Telenor’s financial statements as of year-end 2002, and in accordance with the Norwegian accounting standard for interim reporting.

Telenor ASA third quarter 2003 Page: 25

The accounts submitted with the report have not been audited. This report contains statements regarding the future in connection with Telenor’s growth initiatives, profit figures, outlook, strategies and objectives. In particular, the section “Outlook” contains forward-looking statements regarding the group’s expectations for 2003. 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 Annual Report 2002 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, 29 October 2003
The Board of Directors of Telenor ASA

Telenor ASA third quarter 2003 Page: 26

Profit and loss statement
Telenor group


	3rd quarter						First three quarters						Year
(NOK in millions except net income per share)	2003			2002			2003			2002			2002

Revenues		13,469			12,209			39,218			35,666			48,668
Gains on disposal of fixed assets and operations		22			1			102			118			158
Total revenues		13,491			12,210			39,320			35,784			48,826

Costs of materials and traffic charges		3,391			3,150			9,836			9,472			12,485
Own work capitalized		(122	)		(104	)		(398	)		(397	)		(567	)
Salaries and personnel costs		2,148			2,325			7,011			7,380			10,104
Other operating expenses		3,166			3,060			9,251			9,352			13,188
Losses on disposal of fixed assets and operations		16			12			201			98			147
Depreciation and amortization		2,579			2,665			7,956			7,349			10,236
Write-downs		13			614			76			749			3,553
Total operating expenses		11,191			11,722			33,933			34,003			49,146

Operating profit (loss)		2,300			488			5,387			1,781			(320	)

Associated companies		62			(126	)		1,410			(304	)		(2,450	)
Net financial items		(357	)		(467	)		(1,255	)		(1,168	)		(2,366	)
Profit (loss) before taxes and minority interests		2,005			(105	)		5,542			309			(5,136	)

Taxes		(676	)		(854	)		(1,772	)		14			480
Minority interests		(48	)		(87	)		(209	)		(45	)		358
Net income (loss)		1,281			(1,046	)		3,561			278			(4,298	)

Net income (loss) per share in NOK - basic and diluted		0.72			(0.59	)		2.01			0.16			(2.42	)
US GAAP
Net income (loss)		1,469			(742	)		4,177			1,512			(3,658	)
Net income (loss) per share in NOK - basic and diluted		0.83			(0.42	)		2.35			0.85			(2.06	)

BALANCE
Telenor group



(NOK in millions)	30.09.2003			30.06.2003			30.09.2002			31.12.2002

Deferred tax assets		3,858			4,587			3,572			4,866
Intangible assets		14,371			14,614			18,312			15,045
Tangible assets		38,064			39,176			40,584			41,002
Associated companies		8,940			8,925			11,552			9,489
Other financial assets		4,914			4,640			4,379			3,760

Total fixed assets		70,147			71,942			78,399			74,162

Other current assets		10,659			10,732			11,020			9,772
Cash and interest-bearing investments		5,614			5,305			3,688			5,524

Total current assets		16,273			16,037			14,708			15,296

Total assets		86,420			87,979			93,107			89,458

Paid-in equity		29,285			29,285			29,266			29,285
Other equity		10,794			9,548			12,633			7,268
Cumulative translation adjustments		(2,299	)		(2,551	)		(2,266	)		(2,868	)

Shareholders equity		37,780			36,282			39,633			33,685

Minority interests		3,699			3,725			3,865			3,603

Total equity and minority interests		41,479			40,007			43,498			37,288

		1,543			1,557			1,419			1,176
Long-term interest-bearing liabilities		26,580			27,352			28,027			28,805
Long-term non-interest-bearing liabilities		989			616			547			473

Total long-term liabilities		27,569			27,968			28,574			29,278

Short-term interest-bearing liabilities		618			3,270			3,306			3,591
Short-term non-interest-bearing liabilities		15,211			15,177			16,310			18,125

Total current assets		15,829			18,447			19,616			21,716

Total assets		86,420			87,979			93,107			89,458

USGAAP
Shareholders equity		41,188			39,365			41,539			35,799

CHANGE IN SHAREHOLDERS EQUITY


	01.01.2003			01.01.2003		01.01.2002			01.01.2002
(NOK in millions)	- 30.09.2003			- 30.06.2003		- 30.09.2002			31.12.2002

Shareholders equity as of 1 January		33,685			33,685		42,144			42,144
Net income		3,561			2,280		278			(4,298	)
Dividends		—			—		—			(799	)
Employee share issue		—			—		—			19
Consolidation Canal Digital		—			—		(668	)		(658	)
Acquisition Comincom		(35	)		—		—			—
Translation adjustments		569			317		(2,121	)		(2,723	)

Shareholders equity		37,780			36,282		39,633			33,685

CASH FLOW STATEMENT
Telenor group


	First three quarters						Year
(NOK in millions)	2003			2002			2002

Profit before taxes and minority interests		5,542			309			(5,136	)
Taxes paid		(2,882	)		(1,366	)		(2,050	)
Net (gains) losses including write-downs of financial items		227			75			778
Depreciation, amortization and write-downs		8,032			8,098			13,789
Associated companies		(1,410	)		304			2,450
Difference between expensed and paid pensions		(154	)		147			359
Currency (gains) losses not relating to operating activities		(49	)		142			391
Change in other accruals		(545	)		911			2,277
Net cash flow from operating activities		8,761			8,620			12,858

Payments on purchase of tangible and intangible assets		(4,159	)		(6,144	)		(9,098	)
Payments on purchase of subsidiaries and associated companies, net of cash received		(235	)		(11,746	)		(12,232	)
Proceeds from sale of tangible and intangible assets and businesses, net of cash payed		2,515			315			401
Proceeds from sale of and payments for other investments		8			(765	)		(798	)
Net cash flow from investment activities		(1,871	)		(18,340	)		(21,727	)

Proceeds and payments interest-bearing liabilities		(6,069	)		8,093			9,062
Proceeds from issuance of shares including from minorities in subsidiaries		29			75			200
Payment of dividends		(799	)		(621	)		(621	)
Net cash flow from financing activities		(6,839	)		7,547			8,641

Effect on cash and cash equivalents of changes in foreign exchange rates		42			(190	)		(347	)
Net change in cash and cash equivalents		93			(2,363	)		(575	)

Cash and cash equivalents 01.01.		5,264			5,839			5,839
Cash and cash equivalents by the end of the period		5,357			3,476			5,264

ANALYTICAL INFORMATION


			2001
			Q1		Q2			Q3			Q4

Revenues (NOK in millions)				10,001		10,055			10,064			15,920
EBITDA excluding gains and losses (NOK in millions)				2,293		2,201			2,096			2,287
Operating profit (loss) (NOK in millions)				986		(309	)		(1,912	)		4,412
Profit (loss) before taxes and minority interests (NOK in millions)				10,666		1,428			(2,547	)		708
Equity ratio including minority interests (%)				51.9		51.5			55.1			55.3
Net interest bearing liabilities (NOK in millions)				20,502		10,866			16,358			13,171
Net interest bearing liabilities/EBITDA excluding gains and losses last 12 months				2.3		1.2			2.0			1.5
Capex (NOK in millions)				2,395		2,666			2,724			3,849
Investments in businesses (NOK in millions)				714		999			4,218			1,281
No. of man-years				20,450		21,300			23,200			21,000
	- of which abroad			5,300		5,900			7,600			6,300
MOBILE
	Telenor Mobil (Norway)
	No. of mobile subscriptions (NMT + GSM) (in thousands)			2,189		2,233			2,289			2,307
	No. of GSM subscriptions (in thousands)			2,098		2,147			2,211			2,237
		- of which prepaid (in thousands)		938		969			1,023			1,027
	Traffic minutes per GSM subscription per month, generated and terminated			171		175			182			177
	Average revenue per GSM subscription per month in the quarter (ARPU):			333		337			357			331
		- of which contract		479		492			526			479
		- of which prepaid		152		146			159			159
	No. of SMS and content messages (in millions)			315		323			359			376
	Pannon (Hungary)
	No. of mobile subscriptions (in thousands)			—		—			—			—
		- of which prepaid (in thousands)		—		—			—			—
	Traffic minutes per GSM subscription per month, generated and terminated			—		—			—			—
	Average revenue per GSM subscription per month in the quarter (ARPU):			—		—			—			—
		- of which contract		—		—			—			—
		- of which prepaid		—		—			—			—
	DiGi.Com (Malaysia)
	No. of mobile subscriptions (100% in thousands)			—		—			—			1,039
		- of which prepaid (100% in thousands)		—		—			—			902
	Traffic minutes per GSM subscription per month, generated and terminated			—		—			—			204
	Average revenue per GSM subscription per month in the quarter (ARPU):			—		—			—			180
		- of which contract		—		—			—			265
		- of which prepaid		—		—			—			166
	Grameen Phone (Bangladesh)
	No. of mobile subscriptions (100% in thousands)			242		335			373			464
		- of which prepaid (100% in thousands)		77		149			190			279
	Traffic minutes per GSM subscription per month, generated and terminated			335		302			333			292
	Average revenue per GSM subscription per month in the quarter (ARPU):			226		203			204			173
		- of which contract		275		277			282			259
		- of which prepaid		109		88			119			106
	Kyivstar (Ukraine)
	No. of mobile subscriptions (100% in thousands)			—		—			—			—
		- of which prepaid (100% in thousands)		—		—			—			—
	Traffic minutes per GSM subscription per month, generated and terminated			—		—			—			—
	Average revenue per GSM subscription per month in the quarter (ARPU):			—		—			—			—
		- of which contract		—		—			—			—
		- of which prepaid		—		—			—			—
	Associated companies
	No. of mobile subscriptions (100% in thousands)			10,503		10,662			10,968			12,809
FIXED - Norway
	Retail market
	No. of PSTN subscriptions (in thousands)			1,646		1,619			1,573			1,545
	No. of ISDN subscriptions (lines in thousands)			1,664		1,701			1,727			1,766
	PSTN/ISDN generated traffic (mill. minutes)			5,177		4,736			4,367			4,805
	Market share of PSTN/ISDN generated traffic (%)			73		73			73			73
	No. of internet subscriptions residential market Norway (in thousands)			683		718			757			831
		- of which Frisurf (in thousands)		305		343			386			437
		- of which ADSL (in thousands)		3		5			11			23
	No. of internet subscriptions business market Norway (in thousands)			13		15			15			16
		- of which ADSL (in thousands)		—		—			—			1
BROADCAST
	No. of television subscribers in the Nordic region
		- Subscribers with satellite dish (in thousands)		439		478			506			569
		- Cable TV subscribers (in thousands)		362		362			367			561
		- Households in small antenna TV-networks (in thousands)		1,237		1,112			1,147			1,193

[Additional columns below]

[Continued from above table, first column(s) repeated]


			2002
			Q1		Q2		Q3			Q4

Revenues (NOK in millions)				11,563		12,011		12,210			13,042
EBITDA excluding gains and losses (NOK in millions)				2,926		3,155		3,778			3,599
Operating profit (loss) (NOK in millions)				602		691		488			(2,101	)
Profit (loss) before taxes and minority interests (NOK in millions)				31		383		(105	)		(5,445	)
Equity ratio including minority interests (%)				49.4		48.2		46.7			41.7
Net interest bearing liabilities (NOK in millions)				24,449		25,717		27,645			26,872
Net interest bearing liabilities/EBITDA excluding gains and losses last 12 months				2.6		2.5		2.3			2.0
Capex (NOK in millions)				1,879		2,161		2,169			2,680
Investments in businesses (NOK in millions)				8,875		2,271		493			772
No. of man-years				22,250		21,650		22,350			22,100
	- of which abroad			7,700		7,800		8,600			8,900
MOBILE
	Telenor Mobil (Norway)
	No. of mobile subscriptions (NMT + GSM) (in thousands)			2,314		2,360		2,409			2,382
	No. of GSM subscriptions (in thousands)			2,249		2,299		2,352			2,330
		- of which prepaid (in thousands)		1,051		1,094		1,131			1,115
	Traffic minutes per GSM subscription per month, generated and terminated			171		185		186			178
	Average revenue per GSM subscription per month in the quarter (ARPU):			334		351		359			340
		- of which contract		481		511		528			492
		- of which prepaid		162		168		171			170
	No. of SMS and content messages (in millions)			391		403		444			454
	Pannon (Hungary)
	No. of mobile subscriptions (in thousands)			2,001		2,146		2,311			2,450
		- of which prepaid (in thousands)		1,446		1,596		1,767			1,910
	Traffic minutes per GSM subscription per month, generated and terminated			113		115		112			112
	Average revenue per GSM subscription per month in the quarter (ARPU):			182		184		177			177
		- of which contract		383		391		401			415
		- of which prepaid		97		98		94			100
	DiGi.Com (Malaysia)
	No. of mobile subscriptions (100% in thousands)			1,159		1,284		1,454			1,616
		- of which prepaid (100% in thousands)		1,044		1,176		1,351			1,519
	Traffic minutes per GSM subscription per month, generated and terminated			197		189		185			185
	Average revenue per GSM subscription per month in the quarter (ARPU):			169		158		138			145
		- of which contract		313		331		312			352
		- of which prepaid		150		142		124			131
	Grameen Phone (Bangladesh)
	No. of mobile subscriptions (100% in thousands)			550		625		704			769
		- of which prepaid (100% in thousands)		353		424		501			563
	Traffic minutes per GSM subscription per month, generated and terminated			308		297		288			298
	Average revenue per GSM subscription per month in the quarter (ARPU):			191		173		167			155
		- of which contract		311		297		286			303
		- of which prepaid		118		104		100			95
	Kyivstar (Ukraine)
	No. of mobile subscriptions (100% in thousands)			—		—		1,659			1,856
		- of which prepaid (100% in thousands)		—		—		1,283			1,472
	Traffic minutes per GSM subscription per month, generated and terminated			—		—		50			49
	Average revenue per GSM subscription per month in the quarter (ARPU):			—		—		113			102
		- of which contract		—		—		194			202
		- of which prepaid		—		—		73			70
	Associated companies
	No. of mobile subscriptions (100% in thousands)			12,424		14,425		14,814			16,116
FIXED - Norway
	Retail market
	No. of PSTN subscriptions (in thousands)			1,522		1,497		1,480			1,467
	No. of ISDN subscriptions (lines in thousands)			1,803		1,818		1,818			1,828
	PSTN/ISDN generated traffic (mill. minutes)			4,702		4,392		3,864			4,387
	Market share of PSTN/ISDN generated traffic (%)			73		73		73			72
	No. of internet subscriptions residential market Norway (in thousands)			893		915		936			960
		- of which Frisurf (in thousands)		481		503		525			533
		- of which ADSL (in thousands)		42		53		64			90
	No. of internet subscriptions business market Norway (in thousands)			17		17		16			17
		- of which ADSL (in thousands)		1		2		3			4
BROADCAST
	No. of television subscribers in the Nordic region
		- Subscribers with satellite dish (in thousands)		614		646		664			701
		- Cable TV subscribers (in thousands)		557		559		561			571
		- Households in small antenna TV-networks (in thousands)		1,140		1,126		1,129			1,133

[Additional columns below]

[Continued from above table, first column(s) repeated]


			2003
			Q1		Q2		Q3

Revenues (NOK in millions)				12,606		13,223		13,491
EBITDA excluding gains and losses (NOK in millions)				4,184		4,448		4,886
Operating profit (loss) (NOK in millions)				1,475		1,612		2,300
Profit (loss) before taxes and minority interests (NOK in millions)				1,047		2,490		2,005
Equity ratio including minority interests (%)				42.6		45.5		48.0
Net interest bearing liabilities (NOK in millions)				26,139		25,317		21,584
Net interest bearing liabilities/EBITDA excluding gains and losses last 12 months				1.8		1.6		1.3
Capex (NOK in millions)				1,230		1,314		1,460
Investments in businesses (NOK in millions)				23		268		9
No. of man-years				21,200		21,150		20,300
	- of which abroad			8,700		8,700		8,100
MOBILE
	Telenor Mobil (Norway)
	No. of mobile subscriptions (NMT + GSM) (in thousands)			2,342		2,330		2,364
	No. of GSM subscriptions (in thousands)			2,294		2,285		2,324
		- of which prepaid (in thousands)		1,093		1,091		1,120
	Traffic minutes per GSM subscription per month, generated and terminated			178		190		195
	Average revenue per GSM subscription per month in the quarter (ARPU):			330		346		354
		- of which contract		480		501		519
		- of which prepaid		163		172		174
	No. of SMS and content messages (in millions)			452		462		500
	Pannon (Hungary)
	No. of mobile subscriptions (in thousands)			2,514		2,514		2,564
		- of which prepaid (in thousands)		1,989		1,981		2,019
	Traffic minutes per GSM subscription per month, generated and terminated			104		110		113
	Average revenue per GSM subscription per month in the quarter (ARPU):			153		165		170
		- of which contract		386		414		416
		- of which prepaid		86		92		97
	DiGi.Com (Malaysia)
	No. of mobile subscriptions (100% in thousands)			1,803		1,946		2,055
		- of which prepaid (100% in thousands)		1,708		1,850		1,953
	Traffic minutes per GSM subscription per month, generated and terminated			177		175		177
	Average revenue per GSM subscription per month in the quarter (ARPU):			123		111		117
		- of which contract		331		336		367
		- of which prepaid		112		100		105
	Grameen Phone (Bangladesh)
	No. of mobile subscriptions (100% in thousands)			835		928		1,047
		- of which prepaid (100% in thousands)		631		725		820
	Traffic minutes per GSM subscription per month, generated and terminated			309		312		328
	Average revenue per GSM subscription per month in the quarter (ARPU):			133		136		143
		- of which contract		283		295		337
		- of which prepaid		81		89		90
	Kyivstar (Ukraine)
	No. of mobile subscriptions (100% in thousands)			2,012		2,205		2,512
		- of which prepaid (100% in thousands)		1,614		1,768		2,037
	Traffic minutes per GSM subscription per month, generated and terminated			43		52		59
	Average revenue per GSM subscription per month in the quarter (ARPU):			81		92		106
		- of which contract		167		176		204
		- of which prepaid		54		66		74
	Associated companies
	No. of mobile subscriptions (100% in thousands)			17,158		15,105		17,035
FIXED - Norway
	Retail market
	No. of PSTN subscriptions (in thousands)			1,449		1,427		1,381
	No. of ISDN subscriptions (lines in thousands)			1,816		1,800		1,755
	PSTN/ISDN generated traffic (mill. minutes)			4,268		3,876		3,454
	Market share of PSTN/ISDN generated traffic (%)			70		70		69
	No. of internet subscriptions residential market Norway (in thousands)			982		988		1,004
		- of which Frisurf (in thousands)		553		560		564
		- of which ADSL (in thousands)		114		124		139
	No. of internet subscriptions business market Norway (in thousands)			17		22		25
		- of which ADSL (in thousands)		7		10		11
BROADCAST
	No. of television subscribers in the Nordic region
		- Subscribers with satellite dish (in thousands)		713		708		726
		- Cable TV subscribers (in thousands)		575		590		594
		- Households in small antenna TV-networks (in thousands)		1,130		1,049		1,100

Special items


	3rd quarter						First three quarters						Year
(NOK in millions)	2003			2002			2003			2002			2002

EBITDA		4,892			3,767			13,419			9,879			13,469
Gains on disposal of fixed assets and operations		(22	)		(1	)		(102	)		(118	)		(158	)
Losses on disposal of fixed assets and operations		16			12			201			98			147
EBITDA excluding gains and losses		4,886			3,778			13,518			9,859			13,458

Expenses for workforce reductions, loss contracts and exit from activities
Mobile		(7	)		—			(21	)		6			120
Fixed		(28	)		66			(24	)		118			311
Broadcast		(3	)		13			2			17			65
EDB Business Partner		142			—			199			49			111
Other business units		19			26			32			130			122
Corporate functions and Group activities		(5	)		—			16			190			272
Eliminations		—			8			—			8			47
Total workforce reductions, loss contracts and exit from activities		118			113			204			518			1,048

Adjusted EBITDA		5,004			3,891			13,722			10,377			14,506

Write-downs
Mobile		2			—			29			113			2,289
Fixed		—			351			7			369			500
Broadcast		5			18			9			20			130
EDB Business Partner		6			—			17			4			364
Other business units		—			295			14			293			332
Corporate functions and Group activities		—			—			—			—			—
Eliminations		—			(50	)		—			(50	)		(62	)
Total write-downs		13			614			76			749			3,553

Adjusted operating profit		2,425			1,226			5,766			3,028			4,270

Special items associated companies
(Gains) losses on disposal of ownership interests		—			—			(1,508	)		—			(36	)
Write-down Sonofon		—			—			—			—			1,000
Write-down DTAC/UCOM		—			—			—			—			881
Write-down Oniway		—			—			—			—			316
Other write-downs associated companies		—			74			—			74			84
Total special items associated companies		—			74			(1,508	)		74			2,245

Net (gains) losses and write-downs financial items		38			50			128			95			789
Adjusted profit (loss) before taxes and minority interests		2,168			757			4,541			1,725			2,488

Reconciliations


	3rd quarter						First three quarters						Year
(NOK in millions)	2003			2002			2003			2002				2002

Operating profit (loss)		2,300			488			5,387			1,781				(320	)
Depreciation and amortization		2,579			2,665			7,956			7,349				10,236
Write-downs		13			614			76			749				3,553
EBITDA		4,892			3,767			13,419			9,879				13,469

Net (gains) losses on disposal of fixed assets and operations		(6	)		11			99			(20	)			(11	)
EBITDA excluding gains and losses		4,886			3,778			13,518			9,859				13,458

Expenses for workforce reductions, loss contracts and exit of activities		118			113			204			518				1,048
Adjusted EBITDA		5,004			3,891			13,722			10,377				14,506

Operating profit (loss)		2,300			488			5,387			1,781				(320	)
Write-downs		13			614			76			749				3,553
Net (gains) losses on disposal of fixed assets and operations		(6	)		11			99			(20	)			(11	)
Expenses for workforce reductions, loss contracts and exit of activities		118			113			204			518				1,048
Adjusted operating profit		2,425			1,226			5,766			3,028				4,270

Associated companies		62			(126	)		1,410			(304	)			(2,450	)
Total special items associated companies		—			74			(1,508	)		74				2,245
Adjusted associated companies		62			(52	)		(98	)		(230	)			(205	)

Profit (loss) before taxes and minority interests		2,005			(105	)		5,542			309				(5,136	)
Write-downs		13			614			76			749				3,553
Net (gains) losses on disposal of fixed assets and operations		(6	)		11			99			(20	)			(11	)
Expenses for workforce reductions, loss contracts and exit of activities		118			113			204			518				1,048
Special items associated companies		—			74			(1,508	)		74				2,245
Net (gains) losses and write-downs financial items		38			50			128			95				789
Adjusted profit before taxes and minority interests		2,168			757			4,541			1,725				2,488

SIGNATURES

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


		Telenor ASA

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

Date: 30^th October, 2003