04 delivered good results, solid grow ahead

Our performance in 2014 confirms Telenor Group's position as one of Europe's fastest growing telcos, with organic revenue growth of 5% during the final quarter and 3% for the full year. We reported revenues and earnings in line with our guidance for the year. During 2014, we added 20 million new mobile subscribers, of which 7 million in the fourth quarter alone,'' said Telenor Group President and CEO Jon Fredrik Baksaas.

Demand for smartphones is higher than ever across our markets. We sold more than 1.5 million smartphones during the final quarter, stimulating mobile data growth. At the same time, margins were negatively impacted due to increased handset subsidy costs. In Norway, the rising number of 4G enabled handsets together with our investments in network expansion resulted in strong mobile service revenue growth of 10 per cent. For the first time ever there are more 4G phones in Telenor's Norwegian network than 3G phones and our customers more than doubled their data use in the past year,'' said Baksaas.

2014 was a challenging year for us in Thailand, with intense competition continuing during the fourth quarter. However, dtac has taken corrective measures to strengthen its market position and return to growth. We are seeing early signs of improvement following the introduction of a cluster-based operating model, attractive market offerings and a network improvement programme. By expanding its 3G and 4G network, dtac aims to deliver the best internet network in Bangkok and 30 major cities this year, said Baksaas.

In just one year, the people of Myanmar's main cities have leapfrogged from very limited connectivity to broadly available mobile services. Telenor Group is able to contribute to the rapid development of a nation by providing essential infrastructure that will drive connectivity and new opportunities for Myanmar. Three months after service launch, we ended the year with 3.4 million subscribers. We will steadily introduce products and services in Myanmar that will include everyone in the country's digital future, said Baksaas.

In Europe, we launched online mobile banking services in Serbia during the year and agreed to merge our Danish mobile operation with TeliaSonera. In Bulgaria, where the company was recently rebranded, the network swap is progressing ahead of plan. In Sweden, the integration of Tele2's fibre and cable business is on track, said Baksaas.

Looking ahead, we will continue to focus on the industry transition from voice to data, which is resulting in significant changes to our ecosystem. We are well positioned to monetize on this data surge, deliver healthy growth and profitability. The financial outlook for 2015 is mid-single digit organic revenue growth and an EBITDA margin in the range of 33-35%. Capex to sales ratio is expected to be in line with 2014, excluding the broadcasting satellite, said Baksaas.

Based on the performance during the year, Telenor plans to pay a total dividend of NOK 7.30 per share for 2014, of which NOK 3.80 shall be paid in June and NOK 3.50 in November, said Baksaas.

Key figures The table below contains key figures for the fourth quarter and the full year of 2014, compared to the previous year.

4Q 4Q Year Year

(NOK in millions except earnings per share) 2014 2013 2014 2013

Revenues 29 101 26 333 106 540 99 138

EBITDA before other income and expenses 9 091 8 738 37 681 34 768

EBITDA margin before other income and expenses (%) 31.2 33.2 35.4 35.1

Adjusted operating profit[1] 5 087 5 402 22 926 21 803

Adjusted operating profit/Revenues (%) 17.5 20.5 21.5 22.0

Profit after taxes and non-controlling interests 1 765 (2 019) 10 346 8 748

Earnings per share from total operations, basic, in NOK 1,18 (1,34) 6,88 5,74

Capex 6 602 4 994 22 527 16 610

Capex excl. licences and spectrum 5 636 4 468 16 870 14 224

Capex excl. licences and spectrum/Revenues (%) 19.4 17.0 15.8 14.3

Operating cash flow [2] 3 455 4 271 20 811 20 544

Net interest-bearing liabilities [3] 47 126 39 395

1) Adjusted operating profit is defined as Operating profit less other income and expenses and impairment losses.

2) Operating cash flow is defined as EBITDA before other income and expenses Capex, excluding licences and spectrum.

3) Net interest-bearing liabilities are defined as net interest-bearing debt excluding net present value of licence liabilities.

Telenor Denmark is classified as discontinued operation. Historical Group income statement is restated accordingly.

Media Contact: Meera Bhatia,

Tel: (+47) 4684 4959,

E-mail: meera.bhatia@telenor.com

Press and analyst conference In connection with the publication of the financial results, a press and analyst conference will be held on Wednesday 11 February at 09:00 hrs Norwegian time/CET. The presentation, which will also be broadcast live over the Internet, will be held in Auditorium Voice, Telenor Expo Visitor Centre at Fornebu near Oslo. CEO Jon Fredrik Baksaas and CFO Richard Olav Aa will present the results. The presentation will be held in English.

Internet and mobile broadcast The press and analysts conference will be broadcast live over the Internet, and will also be available as a recording after the conference. The live service also allows for written questions to be submitted. In addition, the conference will be available live and as a recording on mobile phones - for access, SMS expo to 2440 or (+47) 2440 from abroad.

Conference Call and Q&A You may also call in and listen to the presentation over the phone. This service allows you to ask questions at 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 2100 6914 and state the confirmation code: 3823626

LINK:	http://www.telenor.com/media/press-releases/2015/2014-delivered-good-r...
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