Telenor's strategy execution continues to yield results

Our operation in Thailand continues to deliver robust results, while transforming the business and building a solid platform for the future.

Across our operations, we continue to execute on simplification and increasing efficiency, while maintaining market positions. These efforts are generating good results, with savings now of a more structural nature. Year to date, opex has been reduced by close to NOK 1 billion.

Going forward, we will build on the good momentum and continue to create value by focusing on growth, efficiency and simplification, said Telenor Group President & CEO Sigve Brekke.

Key Figures NOK (in millions) Q2

2018 Q2

2017 First half year

2018 First half year

2017 Year

2017 First half year

2018

(IFRS 15)

Revenues 27 485 28 332 54 597 55 928 112 069 54 653

Organic revenue growth (%) -1.0 2.1 -1.2 1.1 0.5

Subscription and traffic revenues 21 445 21 966 42 602 43 143 86 314 42 353

Organic subscription and traffic revenue growth (%) 0.4 3.0 0.7 2.1 2.4

EBITDA before other income and other expenses 11 300 11 605 22 608 22 110 44 694 22 677

EBITDA before other income and other expenses/Revenues (%) 41.1 41.0 41.4 39.5 39.9 41.5

Net income attributable to equity holders of Telenor ASA 2 628 (167) 7 642 4 001 11 983 7 637

Capex excl. licences and spectrum/Revenues (%) 12.4 14.6 11.9 15.2 15.4 11.9

Capex/Revenues (%) 13.3 19.0 15.3 17.5 18.1 15.3

Free cash flow 3 012 9 947 5 587 12 113 24 867 5 587

Mobile subscriptions Change in quarter/Total (mill.) 2.1 2.0 172 164 170 172

Discontinued operations: Telenor India, Hungary, Montenegro & Serbia and Bulgaria, Telenor Common Operation, Telenor Microfinance Bank and Telenor Banka.

Second quarter 2018 summary

On an organic basis, subscription and traffic revenues grew 0.4%, while total revenues decreased by 1%. Total reported revenues were NOK 27.5 billion, which is a reduction of 3%.

Reported opex decreased by NOK 0.5 billion. On a constant currency basis, the reduction was NOK 0.2 billion or 2% and NOK 0.4 billion when also adjusting for one-time items last year.

EBITDA before other items was NOK 11.3 billion, corresponding to an EBITDA margin of 41.1%, which was stable, compared to last year. Organic EBITDA growth was 0.5%.

Net income attributable to equity holders of Telenor ASA was NOK 2.6 billion, or NOK 1.78 earnings per share.

Capex excluding licences and spectrum was NOK 3.4 billion, resulting in a capex to sales ratio of 12%.

Free cash flow for the quarter was NOK 3.0 billion.

Shareholder remuneration

In June, Telenor initiated a share buyback programme for up to 29 million shares, equivalent to about 2% of the registered shares. The programme will return about NOK 5 billion to shareholders.

Outlook

For 2018, we maintain our expectations of an organic subscription and traffic revenue growth of 1-2%, and an organic EBITDA growth of 2-3% with a capex excluding licences and spectrum of NOK 17-18 billion.

Media Contact Atle Lessum, mobile ( 47) 415 05 645, atle.lessum@telenor.com

Investor Relations Contacts Marianne Moe, mobile: ( 47) 916 17 631, marianne.moe@telenor.com

H kon Hatlevik, mobile ( 47) 901 46 070, hakon.hatlevik@telenor.com

Press and analyst presentation In connection with the publication of the financial results, a press and analyst conference will be held on Tuesday 17 July at 09:00 hrs Norwegian time/CET. The presentation, which will also be broadcast live via webcast, will be held in Auditorium Voice, Telenor Expo Visitor Centre at Fornebu near Oslo. CEO Sigve Brekke and CFO J rgen C. Arentz Rostrup will present the results. The presentation will be held in English.

You may also call in and listen to the presentation over the phone. This service allows you to ask questions during the Q&A session at the end of the presentation. To participate in the conference call, please register before the conference starts by calling:

47 2350 0296(local Norway)

46 (0)8 5065 3942 (local Sweden)

44 (0)330 336 9411 (local UK)

1 929-477-0448 (local US)

Please state confirmation code 1927188.

Material The quarterly report and the presentation are available here.

LINK:	https://www.telenor.com/media/press-release/telenors-strategy-executio...
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