Telenor reports four-quarter results

During the fourth quarter, organic revenue growth was one per cent and EBITDA increased by two per cent on an organic basis. The revenue growth was primarily driven by the rapidly increasing data consumption in Pakistan, Bangladesh and Myanmar. We also saw positive effects from the ongoing fibre roll-out in Norway and Sweden. The intense competition in our Thai, Malaysian and Danish markets continued during the quarter. Cost efficiency is a key driver for value creation, and I'm pleased to see that effects from our efficiency initiatives are starting to come through.

Entering 2017, our priorities are clear: We will continue to digitize our core business in order to build strong and engaging customer relationships and to capture the efficiency opportunities that digitization brings, says Sigve Brekke, Chief Executive Officer of Telenor Group.

Key figures Telenor Group (NOK in millions) Q4 2016 Q4 2015 FY 2016 FY 2015

Revenues 33,144 33,487 131,427 128,175

Organic revenue growth (%) 0.6 2.3 1.1 4.7

EBITDA before other income and other expenses 10,793 10,860 46,483 44,197

EBITDA before other income and other expenses/Revenues (%) 32.6 32.4 35.4 34.5

Profit after taxes and non-controlling interests 2,286 (2,125) 2,832 3,414

Capex excl. licences and spectrum/Revenues (%) 20.8 19.5 17.3 18.4

Capex/Revenues (%) 20.8 22.2 20.0 19.7

Mobile subscriptions Change in quarter/Total (mill.) 3.4 6.6 214 203

Fourth quarter 2016 summary

Total revenues decreased by 1% to NOK 33.1 billion, while the organic revenue growth was 1%. Mobile subscription & traffic revenues increased by 1% on an organic basis.

EBITDA before other items was stable at NOK 10.8 billion, corresponding to an EBITDA margin of 33%, which is a slight increase from last year.

EBITDA before other items was negatively impacted by a provision of NOK 0.3 billion related to a decision by the Swedish Tax Agency regarding VAT treatment for 2013 and 2014. Excluding this effect, the organic EBITDA growth was 5%.

Capital expenditure excluding licences and spectrum was NOK 6.9 billion, resulting in a capex to sales ratio of 21%.

As a result of lowered growth expectations within the US media advertising segment, an impairment of NOK 1.0 billion has been recognised in Tapad, which is included in Other Units.

Reported earnings per share (EPS) for 2016 were NOK 1.89. Adjusted for effects related to VimpelCom, impairment losses, other items and currency loss on repayment of internal loans, the EPS was NOK 9.53.

Based on the financial results for 2016, the Board of Directors proposes a dividend of NOK 7.80 per share for 2016, to be paid out in two instalments. The proposal is in line with Telenor's ambition to deliver a year over year growth in dividends.

In 2017, Telenor expects an organic revenue growth in the range of 1% to 2% and an EBITDA margin of around 36%. The capex to sales ratio excluding licences is expected to be 15% to 16%.

Media Contact:

Meera Bhatia,

mobile: (+47) 46 84 49 59,

meera.bhatia@telenor.com

Investor Relations Contacts:

Marianne Moe,

mobile: (+47) 91 61 76 31,

marianne.moe@telenor.com

Helge ien,

mobile: (+47) 91 31 92 42,

helge.oien@telenor.com

Press and analyst presentation In connection with the publication of the financial results, a presentation will he held on Thursday 2 February at 10:00 am CET. The presentation, which will also be available via webcast, will be held in Auditorium Voice, Telenor Expo Visitor Centre at Fornebu near Oslo. CFO J rgen C. Arentz Rostrup will present the quarterly results. The presentation will be held in English. There will not be a QA session following the quarterly results as a result of Telenor's Capital Markets Day 2017 being held the same day from the same location. The Capital Markets Day programme begins at 11:00 am CET and will also be available via webcast. For further details, see http://www.telenor.com/cmd

Material The quarterly report and the presentation are available here. http://www.telenor.com/investors/reports/2017/telenor-groups-results-for-the-4th-quarter-2016/

LINK:	http://www.telenor.com/media/press-releases/2017/telenor-reports-fourt...
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