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: 23rd July 2004, for 2^nd Quarter results 2004

TELENOR ASA

(Registrant’s Name)

Snarøyveien 30,
1331 Fornebu,
Norway
(Registrant’s Address)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F : 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):

TABLE OF CONTENTS


SECOND QUARTER OF 2004
	Telenor ASA second quarter of 2004
	KEY FIGURES
	KEY FIGURES FOR THE BUSINESS AREAS
	EBITDA
	BUSINESS AREAS
	TELENOR MOBIL — NORWAY
	SONOFON — DENMARK
	TELENOR MOBILE SWEDEN
	PANNON GSM – HUNGARY
	DIGI.COM – MALAYSIA
	KYIVSTAR – UKRAINE
	GRAMEENPHONE – BANGLADESH
	OTHER UNITS IN MOBILE
	ASSOCIATED COMPANIES AND JOINT VENTURES IN MOBILE
	FIXED
	FIXED – NORWAY
	FIXED – SWEDEN
	FIXED – RUSSIA
	BROADCAST
	BROADCAST — DISTRIBUTION
	BROADCAST – TRANSMISSION
	OTHER ACTIVITIES
	OTHER BUSINESS UNITS
	CORPORATE FUNCTIONS AND GROUP ACTIVITIES
	OTHER PROFIT AND LOSS ITEMS FOR THE GROUP
	DISPUTES
	US GAAP
	OUTLOOK FOR 2004
		BALANCE SHEET
		CASH FLOW STATEMENT
		THE BUSINESS AREAS SECOND QUARTER
		Special items
		Reconciliations
SIGNATURES

TELENOR ASA SECOND QUARTER

TELENOR ASA SECOND
TEL QUARTER 2004 RESULTS

Telenor’s revenues excluding gains increased by 16.1% to NOK 15,258 million. EBITDA margin adjusted for special items increased from 34.4% to 36.1%. EBITDA increased by NOK 1,331 million to NOK 5,681 million. Operating profit increased by NOK 1,127 million to NOK 2,739 million. Profit before taxes and minority interests increased by NOK 172 million to NOK 2,662 million. CAPEX was NOK 4,012 million. Net interest-bearing liabilities were NOK 22.0 billion.

Telenor’s revenues excluding gains increased by 16.1% to NOK 15,258 million, mainly due to the growth in the mobile operations and the consolidation of Sonofon. Adjusted for the effects of acquisitions and disposals of operations and currency fluctuations, the growth in revenues was just above 8%.

Telenor’s EBITDA margin adjusted for special items increased from 34.4% to 36.1%, primarily due to the results in Mobile constituting a larger part of the Group’s results. EBITDA increased by NOK 1,331 million to NOK 5,681 million.

Telenor’s operating profit increased by NOK 1,127 million to NOK 2,739 million. Profit before taxes and minority interests increased by NOK 172 million to NOK 2,662 million. The second quarter of 2003 included gain on disposal of 9% of the shares in Cosmote of NOK 1.5 billion.

In Mobile, EBITDA increased by NOK 774 million to NOK 3,051 million. The EBITDA margin in Mobile decreased to 37.2%, mainly due to the consolidation of Sonofon and costs associated with a strong customer growth in Telenor Mobil Norway.

The EBITDA margin in Fixed was 32.9%, in line with the second quarter of 2003.

In Broadcast, EBITDA increased by NOK 63 million to NOK 390 million.

In the second quarter of 2004, Telenor Mobil Norway increased the number of subscriptions by 73,000 at the same time as ARPU increased. Telenor’s estimated market share for mobile services in Norway was 56% measured in number of subscriptions. The market share for fixed line telephony in Norway measured in traffic minutes was 69%, in line with the end of the first quarter.

Capital expenditure was NOK 4,012 million compared to NOK 1,314 million in the second quarter of 2003, and included NOK 1.8 billion investment in a licence for mobile telephony in Pakistan.

Net interest-bearing liabilities were NOK 22.0 billion. The

increase of NOK 2.7 billion from the end of the first quarter of 2004 was influenced by the payment of dividends and the repurchase of own shares.

In the second quarter of 2004, Telenor purchased 11,939,900 own shares in the market in accordance with the authority granted by Telenor’s general meeting of 6 May 2004.

In its decision of 14 June 2004, the Oslo District Court ruled in favour of Telenor, stating that Telenor’s intragroup sale of its shares in Sonofon Holding A/S triggered a tax loss of approximately NOK 8.6 billion corresponding to a reduced tax charge of approximately NOK 2.4 billion. The tax authorities have appealed the decision, and Telenor has consequently not recorded any tax income related to this ruling in the second quarter of 2004.

Outlook:

Telenor in general confirms its expectations for 2004 as presented in Telenor’s report for the first quarter of 2004. Overall, excluding special items, we expect a positive development in Telenor’s results compared to 2003.

Continued growth in revenues is expected, in particular driven by the international mobile operations, where we experience a strong growth in the customer base in several markets.

The EBITDA margin is expected to be in line with 2003, excluding special items. This includes the consolidation of Sonofon and the establishment of mobile operations in Pakistan. This expectation is based on, among other factors, the effects of increased marketing efforts to secure growth in several of our mobile operations.

The increase in the customer base in the Ukraine and in Bangladesh contributes to increased network investments. In addition, capital expenditure is expected to increase due to the new operation in Pakistan, including license costs, the purchase of satellite capacity, the consolidation of Sonofon and investments in new technology in Telenor Mobil Norway. In total, capital expenditure is expected to be substantially higer than in 2003.

The sale of the Operating service division from the business area Fixed to EDB Business Partner is for Fixed- Norway expected to have a positive effect on operating profit excluding special items and a negative effect on revenues.

TEL CORRECTION IN PRESS RELEASE

Changed ‘Revenues increased by NOK 1,127 million’ to

Operating profit increased by NOK 1,127 million’

SECOND QUARTER OF 2004

The second quarter of 2004 showed a growth in revenues excluding gains for the Telenor Group of 16.1% to NOK 15.3 billion compared to the second quarter of 2003. Profit before taxes and minority interests increased to NOK 2.7 billion.

Telenor ASA second quarter of 2004

KEY POINTS FROM THE SECOND QUARTER OF 2004 COMPARED TO THE SECOND QUARTER OF 2003

•

The EBITDA margin in Fixed was 32.9%, in line with the second quarter of 2003.

•

In Broadcast, EBITDA increased by NOK 63 million to NOK 390 million.

•

In the second quarter of 2004, Telenor Mobil-Norway increased the number of subscriptions by 73,000 at the same time as ARPU increased Telenor’s estimated market share for mobile services in Norway was 56% measured in number of subscriptions. The market share for fixed line telephony in Norway measured in traffic minutes was 69%, in line with the end of the first quarter.

•

Capital expenditure was NOK 4,012 million compared to NOK 1,314 million in the second quarter of 2003, and included NOK 1.8 billion investment in a licence for mobile telephony in Pakistan.

•		Net interest-bearing liabilities were NOK 22.0 billion. The increase of NOK 2.7 billion from the end of the first quarter of 2004 was influenced by the payment of dividends and the repurchase of own shares.

•		In the second quarter of 2004, Telenor purchased 11,939,900 own shares in the market in accordance with the authority granted by Telenor’s general meeting of 6 May 2004.

•

KEY FIGURES


	2nd quarter				1st half-year				Year
(NOK in millions)	2004		2003		2004		2003		2003
Revenues		15,624		13,223		29,908		25,829		53,121
Revenues excluding gains		15,258		13,147		29,534		25,749		52,889
Revenues excluding gains - growth (%)		16.1		10.1		14.7		9.8		8.7
EBITDA 1)		5,681		4,350		10,697		8,527		18,302
EBITDA/Revenues (%)		36.4		32.9		35.8		33.0		34.5
EBITDA excluding gains and losses 2)		5,342		4,448		10,352		8,632		18,299
Operating profit		2,739		1,612		5,021		3,087		7,560
Operating profit/Revenues (%)		17.5		12.2		16.8		12.0		14.2
Associated companies		211		1,382		344		1,348		1,231
Profit before taxes and minority interests		2,662		2,490		7,336		3,537		7,426
Net income		1,410		1,683		4,211		2,280		4,560
Net interest-bearing liabilities						21,973		25,317		17,817
Investments:
- Capex 3)		4,012		1,314		5,483		2,544		6,454
- Investments in businesses 4)		294		268		4,043		291		563

1)		For a definition and reconciliation of EBITDA, see table at the end of this report.

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 on disposal, expenses for workforce reductions, loss contracts, exit from activities and write-downs)1)


	2nd quarter								1st half-year								Year
(NOK in millions)	2004		2003			Growth			2004		2003			Growth			2003			Growth
Driftsinntekter		15.258		13.147			16,1	%		29.534		25.749			14,7	%		52.889			8,7	%
EBITDA		5.505		4.529			21,6	%		10.540		8.718			20,9	%		18.586			28,1	%
EBITDA/Driftsinntekter (%)		36,1		34,4						35,7		33,9						35,1
Driftsresultat		2.564		1.838			39,5	%		4.868		3.341			45,7	%		7.989			87,1	%
Driftsresultat/Driftsinntekter (%)		16,8		14,0						16,5		13,0						15,1
Tilknyttede selskaper		202		(49	)	nm				335		(149	)	nm				(251	)	nm
Resultat før skatt og minoritetsinteresser		2.460		1.289			90,9	%		4.565		2.384			91,5	%		6.300			153,2	%

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

KEY FIGURES FOR THE BUSINESS AREAS

Revenues


	2nd quarter									1st half-year									Year
(NOK in millions)	2004			2003			Growth			2004			2003			Growth			2003			Growth
Mobile		8,202			5,789			41.7	%		15,416			11,177			37.9	%		23,810			17.0	%
Fixed		4,868			5,150			(5.5	%)		9,808			10,182			(3.7	%)		20,509			2.4	%
Broadcast		1,336			1,169			14.3	%		2,642			2,307			14.5	%		4,820			33.7	%
Other activities		2,870			2,841			1.0	%		5,324			5,519			(3.5	%)		10,811			(7.1	%)
Eliminations		(1,652	)		(1,726	)		(4.3	%)		(3,282	)		(3,356	)		(2.2	%)		(6,829	)		0.6	%
Total revenues		15,624			13,223			18.2	%		29,908			25,829			15.8	%		53,121			8.8	%

EBITDA


	2nd quarter												1st half-year												Year
(NOK in millions)	2004			Margin 1)			2003			Margin 1)			2004			Margin 1)			2003			Margin 1)			2003		Margin 1)
Mobile		3,051			37.2	%		2,277			39.3	%		5,867			38.1	%		4,472			40.0	%		9,567		40.2	%
Fixed		1,601			32.9	%		1.690			32.8	%		3,221			32.8	%		3,282			32.2	%		6,665		32.5	%
Broadcast		390			29.2	%		327			28.0	%		738			27.9	%		531			23.0	%		1,229		25.5	%
Other activities		582			20.3	%		73			2.6	%		844			15.9	%		267			4.8	%		830		7.7	%
Eliminations		57		nm				(17	)	nm				27		nm				(25	)	nm				11	nm
Total EBITDA		5,681			36.4	%		4,350			32.9	%		10,697			35.8	%		8,527			33.0	%		18,302		34.5	%

Special items 2)		(176	)	nm				179		nm				(157	)	nm				191		nm				284	nm
EBITDA adjusted for special items 3)		5,505			36.1	%		4,529			34.4	%		10,540			35.7	%		8,718			33.9	%		18,586		35.1	%

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 for special items as a percentage of revenues excluding gains.

Operating profit (loss)


	2nd quarter											1st half-year											Year
(NOK in millions)	2004		Margin 1)			2003			Margin 1)			2004		Margin 1)			2003			Margin 1)			2003			Margin 1)
Mobile		1,508		18.4	%		1,173			20.3	%		3,014		19.6	%		2,285			20.4	%		5,224			21.9	%
Fixed		729		15.0	%		629			12.2	%		1,421		14.5	%		1,171			11.5	%		2,531			12.3	%
Broadcast		173		12.9	%		59			5.0	%		283		10.7	%		(14	)	nm				181			3.8	%
Other activities		277		9.7	%		(249	)	nm				260		4.9	%		(361	)	nm				(488	)	nm
Eliminations		52	nm				—		nm				43	nm				6		nm				112		nm
Total operating profit		2,739		17.5	%		1,612			12.2	%		5,021		16.8	%		3,087			12.0	%		7,560			14.2	%

Operating profit as a percentage of total revenues

BUSINESS AREAS

MOBILE


	2nd quarter				1st half-year				Year
(NOK in millions)	2004		2003		2004		2003		2003
External revenues
Telenor Mobil – Norway		2,635		2,475		5,124		4,777		9,639
Sonofon – Denmark		1,239		1,911		—		—		—
Telenor Mobile Sweden		34		27		66		47		109
Pannon GSM – Hungary		1,443		1,291		2,846		2,496		5,368
DiGi.Com – Malaysia		962		733		1,902		1,465		3,170
Kyivstar – Ukraine		996		590		1,830		1,073		2,634
GrameenPhone – Bangladesh		535		352		1,028		678		1,535
Other		5		4		8		18		28
Total external revenues		7,849		5,472		14,715		10,554		22,483

Internal revenues		353		317		700		623		1,327
Gains on disposal		—		—		1		—		—
Total revenues		8,202		5,789		15,416		11,177		23,810

EBITDA		3,051		2,277		5,867		4,472		9,567
Depreciation and amortization		1,542		1,085		2,852		2,160		4,308
Write-downs		1		19		1		27		35
Operating profit		1,508		1,173		3,014		2,285		5,224

EBITDA/Total revenues (%)		37.2		39.3		38.1		40.0		40.2
Operating profit/ Total revenues (%)		18.4		20.3		19.6		20.4		21.9
Investments:
- Capex		3,331		678		4,315		1,365		3,667
- Investments in businesses		183		1		3,844		5		95

•

Revenues increased by 41.7% compared to the second quarter of 2003 due to underlying growth and the consolidation of Sonofon.

•		EBITDA increased by 34.0% for the same reasons. However, the EBITDA margin decreased compared to the first quarter of 2003, mainly due to the consolidation of Sonofon and costs associated with a strong customer growth in Telenor Mobil – Norway.

•		Investments in businesses in the second quarter of 2004 consisted of the acquisition of CBB Mobile A/S in Denmark and the purchase of additional shares in Kyivstar, which increased Telenor’s ownership interest from 55.35% to 56.51%.

•		In the second quarter of 2004, capital expenditure included NOK 1.8 billion for a licence for mobile telephony in Pakistan. NOK 1.0 billion was paid in the second quarter of 2004 and the remainder is to be paid in annual instalments over 10 years.

TELENOR MOBIL – NORWAY


	2nd quarter				1st half-year				Year
(NOK in millions)	2004		2003		2004		2003		2003
Subscriptions and connections		369		292		719		622		1,216
Traffic		1,405		1,391		2,695		2,637		5,329
SMS and content services		393		402		777		813		1,599
Customer equipment, service providers and other		468		390		933		705		1,495
Total external revenues		2,635		2,475		5,124		4,777		9,639

Internal revenues		315		321		626		629		1,270
Gains on disposal		—		—		—		—		—
Total revenues		2,950		2,796		5,750		5,406		10,909

EBITDA		1,076		1,040		2,074		2,123		4,262
Depreciation and amortizatioin		272		294		510		587		1147
Write-downs		1		—		1		—		—
Operating profit		803		746		1,563		1,536		3,115

EBITDA/Total revenues (%)		36.5		37.2		36.1		39.3		39.1
Operating profit/ Total revenues (%)		27.2		26.7		27.2		28.4		28.6
Capex		255		108		469		185		500
ARPU (GSM) monthly (NOK)		348		346		340		338		339
No. of subscriptions (in thousand)						2,451		2,330		2,364

Compared to previously reported external revenues SMS services from abroad (roaming) have been reclassified from “Traffic” to “SMS and content services” for all periods.

•		In a market affected by strong competition the number of GSM subscriptions in Telenor Mobil increased by 73,000 in the second quarter compared to the end of the first quarter of 2004, and by 121,000, primarily GSM contract subscriptions, compared to the end of the second quarter of 2003.

•		The estimated market share for GSM measured in number of subscriptions had a positive development in the quarter and was approximately 56% at the end of the second quarter of 2004. Mobile penetration was estimated to have increased to approximately 94%, up from 87% in the second quarter of 2003 and up from 91% in the first quarter of 2004.

•		Compared to the second quarter of 2003 revenues increased primarily as a result of higher sales of traffic on a wholesale basis. External traffic revenues increased due to increased traffic per subscription and an increase in the number of subscriptions, partially offset by price reductions. External subscription revenues

increased compared to the second quarter of 2003 due to the growth in the number of subscriptions. Reduced external revenues from SMS and content services were due to reduced prices in Norway.

•		The reduced EBITDA margin compared to the second quarter of 2003 was primarily due to increased costs connected with sales and marketing activities, higher costs of materials and traffic charges due to increased traffic to other mobile networks and price reductions. These effects were partially offset by an increased number of subscriptions and higher average usage per subscription together with a continued strong focus on cost control.

•		Depreciation and amortization decreased compared to the second quarter of 2003, primarily due to reduced capital expenditure in recent years.

•		Increased capital expenditure compared to the second quarter of 2003 was primarily due to investments in new technology and increased coverage and capacity in the GSM network.

SONOFON – DENMARK


	2nd quarter				1st half-year				Year
(NOK in millions)	2004		2003		2004		2003		2003
Mobile related revenues		924		—		1,435		—		—
Other revenues		323		—		488		—		—
Total revenues		1,247		—		1,923		—		—

EBITDA		236		—		402		—		—
Depreciation and amortization		196		—		310		—		—
Write-downs		—		—		—		—		—
Operating profit		40		—		92		—		—

EBITDA/Total revenues (%)		18.9		—		20.9		—		—
Operating profit/ Total revenues (%)		3.2		—		4.8		—		—
Capex		144		—		210		—		—
ARPU (GSM) monthly (NOK)		255		—		262		—		—
No. of subscriptions (in thousand)						1,212		—		—

Telenor’s ownership interest in Sonofon was 100% at the end of the second quarter of 2004. The Norwegian Krone depreciated against the Danish Krone by approximately 4% in the second quarter of 2004 compared to the first quarter of 2004. The preceding table shows figures included in the accounts for Telenor from 12 February 2004, the date of consolidation of Sonofon. Accumulated ARPU in the table is for the period 1 January – 30 June 2004.

•		On 30 April 2004, Sonofon acquired CBB Mobil A/S (CBB) for DKK 130 million. CBB was previously a service provider on Sonofon’s network.

•		Sonofon’s estimated market share was 26% at the end of the second quarter of 2004, an increase of 4 percentage points from the previous quarter. The number of subscriptions in Sonofon increased by 216,000 from the first quarter. The increase in market share and number of subscriptions was primarily due to the acquisition of CBB, which had 181,000 subscriptions at the time of the acquisition. The estimated mobile penetration in Denmark was in line with the previous quarter and was 89% at the end of the second quarter of 2004.

•		ARPU decreased compared to the end of the first quarter when measured in Danish Kroner, primarily as a result of the consolidation of CBB and price reductions.

•		Revenues and the EBITDA margin for the first six months of 2004 were 2,457 million and 21.5%, respectively. The EBITDA margin was negatively affected by reduced prices and increased costs in connection with sales and marketing activities, partially offset by reductions in other operating expenses.

•		As from 1 July 2004 Sonofon reduced the interconnection charges by 10% on average.

TELENOR MOBILE SWEDEN


	2nd quarter						1st half-year						Year
(NOK in millions)	2004			2003			2004			2003			2003
Total revenues		55			27			101			47			127

EBITDA		(37	)		(36	)		(62	)		(44	)		(114	)
Depreciation and amortization		7			6			15			10			24
Write-downs		—			—			—			—			—
Operating (loss)		(44	)		(42	)		(77	)		(54	)		(138	)

Capex		4			7			8			65			79
ARPU (GSM) monthly (NOK)		202			160			210			140			171
No. of subscriptions (in thousand)								92			59			81

The Norwegian Krone depreciated against the Swedish Krone by approximately 5% in the second quarter of 2004 compared to the second quarter of 2003.

•		Revenues increased due to more subscriptions and increased ARPU.

•		The increase in ARPU was due to changes in subscription composition, with 73,000 MVNO subscriptions at the end of the second quarter of 2004. These subscriptions have a higher ARPU than service provider subscriptions, partly due to termination revenues being included in the revenue basis.

•		EBITDA was in line with the second quarter of 2003 due to increased costs of materials and traffic charges.

PANNON GSM – HUNGARY


	2nd quarter				1st half-year				Year
(NOK in millions)	2004		2003		2004		2003		2003
Mobile related revenues		1,353		1,233		2,676		2,371		5,005
Other revenues		92		59		174		126		365
Total revenues		1,445		1,292		2,850		2,497		5,370

EBITDA		556		512		1,112		981		1,924
Depreciation and amortization		238		216		479		428		889
Write-downs		—		6		—		6		10
Operating profit		318		290		633		547		1,025

EBITDA/Total revenues (%)		38.5		39.6		39.0		39.3		35.8
Operating profit/ Total revenues (%)		22.0		22.4		22.2		21.9		19.1
Capex		121		136		225		249		644
ARPU (GSM) - monthly (NOK)		176		165		172		159		165
No. of subscriptions (in thousand)						2,588		2,514		2,618

Telenor’s ownership interest in Pannon GSM is 100%. The Norwegian Krone depreciated against the Hungarian Forint by approximately 5% in the second quarter of 2004 compared to the second quarter of 2003.

•		Pannon GSM’s estimated market share decreased by 1 percentage point from the previous quarter, to approximately 34% at the end of the second quarter of 2004, compared to 37% at the end of the second quarter of 2003. Compared to the end of the second quarter of 2003, the estimated mobile penetration in Hungary increased from 73% to 81%.

•		In a market affected by strong competition Pannon GSM increased the number of contract subscriptions by 33,000 from the first quarter of 2004, and by 119,000 compared to the second quarter of 2003.

•		ARPU measured in local currency increased by 2% compared to the second quarter of 2003, mainly due to an increased number of contract subscriptions and an increased usage per subscription. The increased number of subscriptions, increased ARPU and increased sales of handsets contributed to a 7% increase in revenues measured in local currency compared to the second quarter of 2003.

•		Reduced EBITDA margin compared to the second quarter of 2003 was due to increased costs in connection with sales and marketing activities as a result of higher gross sales and higher average commissions. This was partially offset by reduced costs due to more efficient operations.

•

In 2003, Pannon GSM was considered as having a significant market position in the national interconnection market in Hungary for 2002 and 2003. Pannon GSM has appealed these decisions. It is not yet known when a final decision will be issued by the Hungarian courts. In the meantime, however, because the company was considered as having a significant market position Pannon GSM reduced its interconnection prices by an average of 9% from 15 June 2004.

DIGI.COM – MALAYSIA


	2nd quarter				1st half-year				Year
(NOK in millions)	2004		2003		2004		2003		2003
Mobile related revenues		820		621		1,631		1,254		2,713
Other revenues		143		113		273		214		463
Total revenues		963		734		1,904		1,468		3,176

EBITDA		410		283		836		590		1,295
Depreciation and amortization		208		189		418		377		780
Write-downs		—		4		—		10		18
Operating profit		202		90		418		203		497

EBITDA/Total revenues (%)		42.6		38.6		43.9		40.2		40.8
Operating profit/ Total revenues (%)		21.0		12..3		22.0		13.8		15.6
Capex		162		129		265		273		1043
ARPU (GSM) monthly (NOK)		110		111		114		117		117
No. of subscriptions (100% in thousand)						2,585		1,946		2,207

Telenor’s ownership interest in DiGi.Com was 61.0% at the end of the second quarter of 2004. The Norwegian Krone appreciated against the Malayan Ringgit by approximately 3% in the first quarter of 2004 compared to the second quarter of 2003.

•		At the end of the second quarter of 2004, DiGi.Com’s estimated market share was unchanged from the previous quarter at 21%, compared to 19% at the end of the second quarter of 2003. The estimated mobile penetration in Malaysia was 49% at the end of the second quarter of 2004, an increase from 42% at the end of the second quarter of 2003.

•		Revenues increased by 34% compared to the second quarter of 2003, when measured in local currency, mainly due to an increase in the number of subscriptions of 169,000. ARPU measured in local currency was in line with that of the second quarter of 2003.

•		The increase in EBITDA margin was due to increased revenues without corresponding increases in costs of materials and traffic charges. Measured in local currency, EBITDA increased by 47% compared to the second quarter of 2003.

•		Compared to the second quarter of 2003, depreciation and amortization increased as a result of high capital expenditure in the intervening periods.

•		Increased capital expenditure compared to the second quarter of 2003 was related to investments in networks resulting from increased coverage and a larger customer base.

KYIVSTAR – UKRAINE


	2nd quarter				1st half-year				Year
(NOK in millions)	2004		2003		2004		2003		2003
Mobile related revenues		981		575		1,803		1,039		2,569
Other revenues		15		15		27		34		65
Total revenues		996		590		1,830		1,073		2,634

EBITDA		591		338		1,096		601		1,573
Depreciation and amortization		103		81		205		158		343
Write-downs		—		—		—		—		—
Operating profit		488		257		891		443		1,230

EBITDA/Total revenues (%)		59.3		57.3		59.9		56.0		59.7
Operating profit/ Total revenues (%)		49.0		43.6		48.7		41.3		46.7
Capex		566		212		897		430		979
ARPU (GSM) - monthly (NOK)		97		92		92		87		94
No. of subscriptions (100% in thousand)						3,610		2,205		3,037

Telenor’s ownership interest at the end of the second quarter of 2004 was 56.51%. The functional currency for Kyivstar is the US dollar. The Norwegian Krone appreciated against the US dollar by approximately 3% in the second quarter of 2004 compared to the second quarter of 2003.

•		Kyivstar’s estimated market share decreased by 2 percentage points from the previous quarter and was 43% at the end of the second quarter of 2004, compared to 50% at the end of the second quarter of 2003. The reduction was due to increased competition in the prepaid segment. Compared to the second quarter of 2003, the estimated mobile penetration in the Ukraine increased from 9% to 18%.

•		ARPU measured in US dollars increased by 8% compared to the second quarter of 2003. This was largely due to the average traffic minutes per subscription increasing by 42%, primarily due to the introduction of a calling party pays regime from 19 September 2003.

•		A significant increase in the number of subscriptions and ARPU contributed to a revenue increase of 72% measured in US dollars compared to the second quarter of 2003.

•		Measured in US dollars, EBITDA increased by 79% compared to the second quarter of 2003, mainly due to increased revenues. Increased EBITDA margin reflected cost effective operations and limited costs in connection with sales and marketing activities.

•		Compared to the second quarter of 2003, depreciation and amortization increased as a result of increased capital expenditure in the subsequent quarters.

•		Increased capital expenditure compared to the second quarter of 2003 was due to investments in networks resulting from a larger customer base.

GRAMEENPHONE – BANGLADESH


	2nd quarter				1st half-year				Year
(NOK in millions)	2004		2003		2004		2003		2003
Mobile related revenues		532		352		1,022		673		1,529
Other revenues 1)		3		1		6		6		7
Total revenues		535		353		1,028		679		1,536

EBITDA		309		221		592		418		1,001
Depreciation and amortization		51		38		85		74		158
Write-downs		—		—		—		—		—
Operating profit		258		183		507		344		843

EBITDA/Total revenues (%)		57.8		62.6		57.6		61.6		65.2
Operating profit/ Total revenues (%)		48.2		51.8		49.3		50.7		54.9
Capex		258		86		418		163		429
ARPU (GSM) - monthly (NOK)		108		136		116		135		136
No. of subscriptions (100 in thousand)						1,795		928		1,141

Telenor’s ownership interest at the end of the second quarter of 2004 was 51.0%. The Norwegian Krone appreciated against the Bangladeshi Takka by approximately 5% in the second quarter of 2004 compared to the second quarter of 2003.

•		GrameenPhone’s estimated market share decreased by 1 percen-tage point from the previous quarter to 62% at the end of the second quarter of 2004, and 69% at the end of the second quarter of 2003. The reduction was due to increased competition, especially since the third quarter of 2003. The estimated mobile penetration in Bangladesh doubled from the second quarter of 2003 to 2% in the second quarter of 2004.

•		Compared to the end of the first quarter of 2004 the number of subscriptions in GrameenPhone increased by 18% to approximately 1.8 million. The increase from the second quarter of 2003 was 93%. The increase in the number of subscriptions contributed to an increase in revenues of 58% measured in local currency compared to the second quarter of 2003.

•		Measured in local currency, ARPU declined by 17% compared to the second quarter of 2003. This was mainly due to a higher portion of prepaid subscriptions and price reductions, including free call time.

•		Measured in local currency, EBITDA increased by 46% compared to the second quarter of 2003, primarily due to increased revenues. However, the EBITDA margin declined compared to the second quarter of 2003 due to increased costs in connection with sales and marketing activities related to the significant increase in the sale of new subscriptions.

•		Compared to the second quarter of 2003, depreciation and amortization increased as a result of increased capital expenditure in the subsequent quarters.

•		Compared to the second quarter of 2003, capital expenditure increased as a result of increased need for network investment due to the significant growth in the number of subscriptions.

OTHER UNITS IN MOBILE

(including eliminations and amortization and write-downs of net excess values)


	2nd quarter						1st half-year						Year
(NOK in millions)	2004			2003			2004			2003			2003
EBITDA		(90	)		(81	)		(183	)		(197	)		(374	)
Depreciation and amortization 1)		467			261			830			526			967
Write-downs		—			9			—			11			7
Operating (loss)		(557	)		(351	)		(1,013	)		(734	)		(1,348	)

1) Includes amortization of Telenor’s net excess values by *)		471			235			834			474			911
Capex		1,821			—			1,823			—			(7	)

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

•		Other units in Mobile include costs related to the management and administration of Telenor’s international mobile operations, as well as amortization and write-downs of Telenor’s net excess values on consolidated mobile companies.

•		Increased EBITDA loss compared to the second quarter of 2003 was partially due to operating costs in Pakistan.

•		Increased amortization of net excess values compared to the second quarter of 2003 was due to amortization of excess values relating to Sonofon.

•		Capital expenditure in the second quarter was mainly the purchase of a licence for mobile telephony in Pakistan.

ASSOCIATED COMPANIES AND JOINT VENTURES IN MOBILE


	2nd quarter						1st half-year						Year
(NOK in millions)	2004			2003			2004			2003			2003
Telenor’s share of 1)
Net income after taxes		233			167			497			281			608
Amortization of Telenor’s net excess values 2)		(28	)		(143	)		(111	)		(300	)		(534	)
Write-downs of Telenor’s excess values		—			—			—			—			(15	)
Gains on disposal of ownership interests		—			1,515			—			1,580			1,580
Net results from associated companies		205			1,539			386			1,561			1,639

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 Sonofon until 12 February 2004. Effective from this date Sonofon was consolidated as a subsidiary. Cosmote was included as an associated company through April 2003.

2)		Net excess values are the differences between Telenor’s acquisition cost and Telenor’s share of equity at acquisition of associated companies.

•		In the second quarter of 2004 there was a significant growth in the overall subscription base for the existing associated companies. The growth was especially strong in Vimpelcom in Russia.

•		Reduced amortization of Telenor’s net excess values on associated companies compared to the second quarter of 2003 was primarily due to the consolidation of Sonofon as of 12 February 2004.

•		Gain on disposal of ownership interests in the second quarter of 2003 was related to the sale of 9% of the shares in Cosmote.

FIXED


	2nd quarter				1st half-year				Year
(NOK in millions)	2004		2003		2004		2003		2003
External revenues
Norway		3,957		4,112		8,012		8,262		16,409
Sweden		410		401		821		693		1,517
Russia		—		186		—		352		701
Other countries		43		40		86		78		160
Total external revenues		4,410		4,739		8,919		9,385		18,787

Internal revenues		458		410		889		796		1,713
Gains on disposal		—		1		—		1		9
Total revenues		4,868		5,150		9,808		10,182		20,509

EBITDA		1,601		1,690		3,221		3,282		6,665
Depreciation and amortization 1)		872		1,054		1,800		2,104		4,110
Write-downs		—		7		—		7		24
Operating profit		729		629		1,421		1,171		2,531

1)Includes amortization of Telenor’s net excess values by		26		10		—		22		(76	)
EBITDA/Total revenues (%)		32.9		32.8		32.8		32.2		32.5
Operating profit/ Total revenues (%)		15.0		12.2		14.5		11.5		12.3
Investments:
- Capex		385		449		763		845		1,867
- Investments in businesses		10		217		96		217		294

•		Compared to the second quarter of 2003, the results were affected by the sale of Comincom/Combellga to Golden Telecom on 1 December 2003 and the transfer of parts of the Operating services business from Fixed to EDB Business Partner with effect from 1 May 2004. The transferred business provided services in connection with the operation of the IT systems to other Telenor companies and to external customers. This business was included in the results for Fixed until 1 May 2004.

•		The EBITDA margin was in line with the second quarter of 2003. The decline in revenues and EBITDA compared to the second quarter of 2003 was mainly due to the sale of Comincom/Combellga and the transfer of parts of Operating services to EDB Business Partner.

FIXED – NORWAY


	2nd quarter				1st half-year				Year
(NOK in millions)	2004		2003		2004		2003		2003
Retail revenues
Subscriptions and connections - PSTN/ISDN		953		1,088		1,911		2,200		4,300
Subscriptions and connections - ADSL/Internet		321		252		602		489		1,041
Internet traffic		89		139		227		306		561
Other traffic		1,134		1,300		2,339		2,633		5,062
Total PSTN/ISDN, ADSL and Internet		2,497		2,779		5,079		5,628		10,964

Leased lines		67		80		148		161		329
Datacommunication		224		197		424		409		836
Managed services		116		173		280		367		726
Other retail products		116		100		212		188		377
Total other retail revenues		523		550		1,064		1,125		2,268

Total retail revenues		3,020		3,329		6,143		6,753		13,232

Wholesale revenues
Sale to service providers and operators		179		51		365		74		249
Domestic interconnect		155		164		314		334		643
international interconnect		84		87		162		161		339
Transit traffic		257		258		510		503		1,038
Leased lines		162		155		333		316		631
Other wholesale revenues		100		68		185		121		277
Total wholesale revenues		937		783		1,869		1,509		3,177

Total external revenues		3,957		4,112		8,012		8,262		16,409

Internal revenues		456		427		894		833		1,776
Gains on disposal		—		1		—		1		4
Total revenues – Norway		4,413		4,540		8,906		9,096		18,189


	2nd quarter					1st half-year				Year
(NOK in millions)	2004			2003		2004		2003		2003
EBITDA		1,576			1,644		3,196		3,227		6,512
Depreciation and amortization 1)		818			937		1,696		1,871		3,773
Write-downs		—			—		—		—		19
Operating profit		758			707		1,500		1,356		2,720

1) Includes amortization of Telenor’s net excess values by		(1	)		—		—		1		9
EBITDA/Total revenues (%)		35,7			36,2		35,9		35,5		35,8
Operating profit/ Total revenues (%)		17,2			15,6		16,8		14,9		15,0
Investments:
- Capex		315			387		670		721		1,568
- Investments in businesses		1			—		1		—		1

•		Adjusted for the transfer of Operating services to EDB Business Partner, revenues decreased by 1.0% and the EBITDA margin decreased by 0.8 percentage points while the operating margin improved by 0.8 percentage points.

•		External revenues from “Subscriptions and connections – PSTN/ISDN” decreased compared to the second quarter of 2003 due to the transition to sales of access lines on a wholesale basis and a decrease in the number of subscriptions in the market as a whole.

•		Increased external revenues from “Subscriptions and connections – ADSL/Internet” was due to the growth in the number of ADSL subscriptions. The number of ADSL subscriptions (residential and business) was 235,000 at the end of the second quarter of 2004, an increase of 101,000 compared to the second quarter of 2003 and 27,000 compared to the end of the first quarter of 2004. Telenor’s estimated market share for ADSL subscriptions (residential and business) was 56% at the end of the second quarter, in line with the end of the first quarter.

•		The reduction in external traffic revenues in the retail market compared to the second quarter of 2003 was mainly due to an approximately 14% decline in total traffic measured in minutes in Telenor’s network and reduced market share. The reduction in total traffic was due to the migration of voice traffic from fixed telephony to mobile tele-phony 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 second quarter of 2004, in line with the end of the first quarter of 2004.

•		Increased revenues from data services were mainly due to growth in IP-based services and payment solutions.

•		External revenues from managed services decreased compared to the second quarter of 2003 due to the transfer of parts of this operation to EDB Business Partner.

•		Increased revenues from sales to service providers and other network operators were due to increased sales of access lines on a wholesale basis (PSTN, ISDN and ADSL). The number of PSTN/ISDN lines sold on a wholesale basis was 385,000 at the end of the second quarter of 2004, an increase of 356,000 compared to the second quarter of 2003 and 46,000 compared to the end of the first quarter of 2004. The number of ADSL subscriptions sold on a wholesale basis was 86,000 at the end of the second quarter of 2004, an increase of 55,000 compared to the second quarter of 2003 and 10,000 com-pared to the end of the first quarter of 2004.

•		The increase in external revenues from other wholesale products was mainly due to increased sales of local loop unbundled subscriptions. The number of local loop unbundled subscriptions sold at the end of the second quarter was 108,000, an increase of 49,000 compared to the end of the second quarter of 2003 and 12,000 compared to the end of the first quarter of 2004.

•		Reduced EBITDA compared to the second quarter of 2003 was primarily due to the reduced gross margin (revenues less costs of materials and traffic charges as a percentage of revenue) as a consequence of the reduction in revenues, which was partially offset by the migration to products with a higher gross margin and reduced termination charges in the mobile networks. In addition, NOK 24 million related to workforce reductions was expensed in the second quarter of 2004.

•		Depreciation and amortization decreased compared to the second quarter of 2003, mainly due to lower investment activity in recent years, and as a consequence of the transfer of parts of the business in Operating services to EDB Business Partner.

•		In the second quarter of 2004, capital expenditure in administrative support systems in Fixed decreased with a one-time effect of NOK 60 million, as a consequence of it being transferred to Corporate functions and Group activities.

FIXED – SWEDEN


	2nd quarter						1st half-year						Year
(NOK in millions)	2004			2003			2004			2003			2003
External revenues		410			401			821			693			1,517
Internal revenues		26			18			49			43			81
Gains on disposal		—			—			—			—			5
Total revenues		436			419			870			736			1,603

EBITDA		24			(21	)		21			(62	)		(56	)
Depreciation and amortization 1)		41			66			78			130			141
Write-downs		—			4			—			4			1
Operating (loss)		(17	)		(91	)		(57	)		(196	)		(198	)

1) Includes amortization of
Telenor’s net excess values by		27			(6	)		—			(11	)		(143	)
Investments:
- Capex		63			10			78			19			85
- Investments in businesses		9			—			87			—			13

•		Trading in Utfors AB shares on the Stockholm Stock Exchange ceased on 31 March 2004. At the end of the second quarter of 2004, Telenor held 99.1% of the shares in Utfors AB.

•		Increased revenues measured in NOK compared to the second quarter of 2003 were due to non-recurring revenues of NOK 31 million for sales of data services on a wholesale basis undertaken in previous periods. There was a reduction in sales of traffic on a wholesale basis and voice traffic in the business market.

•		Increased EBITDA compared to the second quarter of 2003 was largely due to the non-recurring revenues from the sale of data services on a wholesale basis mentioned above.

•		Upon the final allocation of net excess values in the third quarter of 2003 related to the acquisition of Utfors AB, the amortization period for a significant part of the negative goodwill was reduced. This contributed to reduced depreciation and amortization in the second quarter of 2004 compared to the second quarter of 2003.

FIXED – RUSSIA


	2nd quarter				1st half-year				Year
(NOK in millions)	2004		2003		2004		2003		2003
Total revenues		—		187		—		354		703
EBITDA		—		71		—		128		215
Operating profit 1)		—		33		—		52		71

1) Includes amortization of Telenor’s net excess values by		—		16		—		32		58
Investments:
- Capex		—		43		—		86		173
- Investments in businesses		—		217		—		217		280

•

Telenor’s shareholding in Comincom/Combellga was sold on 1 December 2003 in exchange for shares in the listed company Golden Telecom. Comincom/Combellga was consolidated as a subsidiary up until 1 December 2003. Golden Telecom is accounted for as an associated company from this date.

FIXED – OTHER COUNTRIES

•

The activities in Fixed – Other Countries consist of activities in the Czech Republic and Slovakia. EBITDA was NOK 4 million in the second quarter of 2004, which was an improvement of NOK 3 million compared to the second quarter of 2003 due to increased revenues.

BROADCAST


	2nd quarter				1st half-year					Year
(NOK in millions)	2004		2003		2004		2003			2003
External revenues
Distribution		1,060		913		2,120		1,783			3,761
Transmission		201		193		404		407			816
Other		42		12		50		23			64
Total external revenues		1,303		1,118		2,574		2,213			4,641

Internal revenues		33		40		68		83			159
Gains on disposal		—		11		—		11			20
Total revenues		1,336		1,169		2,642		2,307			4,820

EBITDA		390		327		738		531			1,229
Depreciation and amortization 1)		217		268		455		541			1,030
Write-downs		—		—		—		4			18
Operating profit (loss)		173		59		283		(14	)		181

1) Includes amortization of Telenor’s net excess values by		60		64		127		127			256
EBITDA/Total revenues (%)		29,2		28,0		27,9		23,0			25,5
Operating profit/Total revenues (%)		12,9		5,0		10,7	nm				3,8
Investments:
- Capex		70		35		93		63			252
- Investments in businesses		—		9		—		10			14

•		Revenues increased in the second quarter of 2004 compared to the second quarter of 2003, mainly due to growth in the number of subscribers and price increases. The increase in the EBITDA margin to 29.2% in the second quarter of 2004 from 28.0% in the second quarter of 2003 was due to increased revenues and reduced prices on the leasing of satellite capacity.

•		Reduced depreciation and amortization compared to the second quarter of 2003 was mainly due to fully depreciated fixed assets.

BROADCAST – DISTRIBUTION


	2nd quarter				1st half-year					Year
(NOK in millions)	2004		2003		2004		2003			2003
External revenues
Satellite dish		717		612		1,447		1,190			2,528
Cable-TV		243		217		481		429			888
Small antenna TV-networks		97		84		187		158			335
Other		3		—		5		6			10
Total external revenues		1,060		913		2,120		1,783			3,761

Internal revenues		3		4		5		6			13
Gains on disposal		—		11		—		11			20
Total revenues		1,063		928		2,125		1,800			3,794

EBITDA		218		199		410		284			686
Depreciation and amortization 1)		148		193		316		389			754
Write-downs		—		—		—		2			8
Operating profit (loss)		70		6		94		(107	)		(76	)

1)Includes amortization of Telenor’s net excess values by		60		64		127		127			255
EBITDA/Total revenues (%)		20,5		21,4		19,3		15,8			18,1
Operating profit/ Total revenues (%)		6,6		0,6		4,4	nm			nm
Investments:
- Capex		47		17		55		34			112

•		Revenues in Distribution increased compared to the second quarter of 2003 mainly due to a greater number of subscribers, currency fluctuations and price increases for “Satellite dish”.

•		Adjusted for gains on disposals and accruals between the quarters in 2003, the EBITDA margin increased in the second quarter of 2004 compared to the second quarter of 2003. This was due to increased revenues, partially offset by increased costs as a result of the increased number of subscribers.

•		Reduced depreciation and amortization was a result of fully depreciated fixed assets within “Satellite dish”.

•		Increased capital expenditure was primarily due to upgrades of cable TV networks in Norway.

BROADCAST – TRANSMISSION


	2nd quarter				1st half-year				Year
(NOK in millions)	2004		2003		2004		2003		2003
External revenues		201		193		404		407		816
Internal revenues		109		122		209		240		461
Gains on disposal		—		—		—		—		—
Total revenues		310		315		613		647		1,277

EBITDA		160		127		312		266		554
Depreciation and amortization		66		72		132		146		266
Write-downs		—		—		—		—		7
Operating profit		94		55		180		120		281

EBITDA/Total revenues (%)		51,6		40,3		50,9		41,1		43,4
Operating profit/ Total revenues (%)		30,3		17,5		29,4		18,5		22,0
Investments:
- Capex		18		16		30		26		116

•		External revenues increased in Transmission compared to the second quarter of 2003 as a result of new contracts within terrestrial broadcasting and satellite. Reduced sales to other areas within Broadcast and to other Telenor units contributed to reduced internal revenues.

•		EBITDA increased compared to the second quarter of 2003 due to reduced prices on the leasing of satellite capacity.

•		Reduced depreciation and amortization was due to fully depreciated fixed assets.

BROADCAST – OTHER

• Increased revenues and EBITDA in Broadcast – Other compared to the second quarter of 2003 was due in part to increased sales of smart cards and services related to access control for Pay TV.

OTHER ACTIVITIES

EDB BUSINESS PARTNER


	2nd quarter				1st half-year				Year
(NOK in millions)	2004		2003		2004		2003		2003
External revenues		830		808		1,635		1,612		3,210
Internal revenues		213		283		444		537		1,060
Gains on disposal		301		19		301		19		19
Total revenues		1,344		1,110		2,380		2,168		4,289

EBITDA		456		116		584		211		399
Depreciation and amortization		100		92		186		181		375
Write-downs		—		7		—		11		28
Operating profit (loss)		356		17		398		19		(4	)

EBITDA/Total revenues (%)		33,9		10,5		24,5		9,7		9,3
Operating profit/ Total revenues (%)		26,5		1,5		16,7		0,9	nm
Investments:
- Capex		34		69		65		128		210
- Investments in businesses		402		91		402		95		95

Telenor’s ownership interest in EDB Business Partner was 51.8% at the end of the second quarter of 2004.

•		On 1 May 2004, parts of the Operating services business were transferred from the Fixed business area in Telenor to EDB Business Partner. At the same time, Telenor extended the duration and expanded the scope of its agreement with EDB Business Partner regarding operation of Telenor’s IT systems up until 1 May 2011. In addition, pursuant to this agreement EDB Business Partner took over operating contracts for a number of external customers from Telenor.

•		With effect from 1 April 2004, a substantial portion of the activities within Telekom in EDB Business Partner was sold for approximately NOK 400 million with a gain of NOK 301 million.

•		Adjusted for disposals of operations, revenues, excluding gains, increased by 9% compared to the second quarter of 2003. IT operations showed an increase of 10% in revenues while revenues in Telekom declined by 16%.

•		The increase in EBITDA margin compared to the second quarter of 2003 was due to cost savings related to the restructuring of Banking & Finance, the winding

		up of low margin operations as well as a general focus on cost control.

•		Depreciation and amortization increased compared to the second quarter of 2003, primarily due to taking over fixed assets in connec-tion with the acquisition of operations, including Operating services from Telenor.

•		Capital expenditure was at a low level compared to previous periods due to a more efficient utilization of previous investments and equipment acquired as part of the takeover of operations. Investments in businesses were mainly related to taking over Operating services from Telenor.

OTHER BUSINESS UNITS

Revenues


	2nd quarter						1st half-year						Year
(NOK in millions)	2004			2003			2004			2003			2003
Satellite Services		616			675			1,217			1,304			2,540
Teleservice		139			183			267			363			725
Nextra International		—			122			—			253			256
Software Services		27			16			57			35			121
Other		141			120			272			231			515
Eliminations		(1	)		(2	)		(2	)		(1	)		(3	)
Revenues		922			1,114			1,811			2,185			4,154

Gains on disposal		—			14			5			14			51
Total revenues		922			1,128			1,816			2,199			4,205

EBITDA		120			(41	)		261			65			408
Depreciation and amortization 1)		99			117			204			236			491
Write-downs 1)		—			14			3			14			37
Operating profit (loss)		21			(172	)		54			(185	)		(120	)
1) Includes amortization of Telenor’s net excess values by		9			10			18			20			40

Operating profit (loss)


	2nd quarter						1st half-year						Year
(NOK in millions)	2004			2003			2004			2003			2003
Satellite Services		29			53			79			116			234
Teleservice		1			5			(1	)		10			(43	)
Nextra International		1			(197	)		—			(239	)		(220	)
Software Services		(7	)		(31	)		(11	)		(58	)		(86	)
Other		(3	)		(2	)		(13	)		(14	)		(5	)
Total operating profit (loss)		21			(172	)		54			(185	)		(120	)

Investments:
- Capex		45			63			85			100			233
- Investments in businesses		18			2			20			16			30

Satellite Services

•		Satellite Services and Satellite Networks were merged in the second quarter of 2004 and are now reported as one unit.

•		The decrease in revenues in Satellite Services compared to the second quarter of 2003 was primarily due to a reduction in the volume and price of Inmarsat-based satellite services, the effect of the strengthening of the Norwegian Krone against the US dollar and the sale of the operations in Poland in November 2003.

•		The decrease in operating profit compared to the second quarter of 2003 was primarily due to decreased revenues without a corresponding reduction in costs of material and traffic charges.

Teleservice

•		Decreased revenues in Teleservice compared to the second quarter of 2003 were primarily due to the disposal of operations. As of 1 January 2004, the MeetAt operations were transferred to the business area Fixed and parts of the operations outside Norway were sold. In the second quarter of 2003, these operations had in the aggregate revenues of NOK 32 million. A reduced total market for directory enquiry services and a reduced market share also contributed to reduced revenues, partially offset by increased prices as of 1 June 2004.

•		Reduced operating profit compared to the second quarter of 2003 was primarily due to the sale of operations and reduced revenues from the directory enquiry services. In the second quarter of 2003, NOK 5 million was expensed for workforce reductions.

Software services

•		Increased revenues compared to the second quarter of 2003 were mainly due to changes in delivery periods for internal sales of CA software.

•		Restructuring of the operations and renegotiation of the agreement with Computer Associates in the fourth quarter of 2003 contributed to reduced operating expenses compared to the second quarter of 2003. In addition to increased revenues, this contributed to reduced operating loss compared to the second quarter of 2003.

CORPORATE FUNCTIONS AND GROUP ACTIVITIES


	2nd quarter						1st half-year						Year
(NOK in millions)	2004			2003			2004			2003			2003
External revenues		68			63			133			112			229
Internal revenues		471			509			928			1,005			1,955
Gains on disposal		65			31			67			35			133
Total revenues		604			603			1,128			1,152			2,317

EBITDA		6			(2	)		(1	)		(9	)		23
Depreciation and amortization		106			92			191			186			384
Write-downs		—			—			—			—			3
Operating (loss)		(100	)		(94	)		(192	)		(195	)		(364	)

Investments:
- Capex		162			26			177			55			253
- Investments in businesses		18			6			18			6			93

•		In the second quarter of 2004, EBITDA was positively affected by gains and losses on disposals of NOK 41 million, compared to NOK 30 million in the second quarter of 2003. EBITDA was negatively affected by expenses for workforce reductions and loss contracts of NOK 103 million, compared to NOK 24 million in the second quarter of 2003. Expenses in the second quarter of 2004 were mainly due to the agreements to transfer the Telenor Group’s Norwegian IT-operations to EDB Business Partner. These expenses are reported in Corporate functions and Group activities as the agreements are part of the Group’s initiatives for improving operational efficiency. EBITDA adjusted for special items increased by NOK 76 million compared to the second quarter of 2003, primarily due to reduced expenses for property repair and maintenance and property development projects.

•		Capital expenditure increased compared to the second quarter of 2003 due to investments in administrative support systems and software licences for use by the Group, as well as property-related investments.

OTHER PROFIT AND LOSS ITEMS FOR THE GROUP

Depreciation, amortization and write-downs


	2nd quarter				1st half-year				Year
(NOK in millions)	2004		2003		2004		2003		2003
Depreciation of tangible assets		1,989		2,017		3,913		4,035		7,986
Amortization of goodwill *)		245		196		458		405		686
Amortization of other intangible assets *)		707		478		1,301		937		1,925
Total depreciation and amortization		2,941		2,691		5,672		5,377		10,597

Write-downs of tangible and other intangible assets		1		35		2		45		104
Write-downs of goodwill		—		6		2		10		16
Write-downs of other intangible assets		—		6		—		8		25
Total write-downs		1		47		4		63		145

Total depreciation, amortization and write-downs		2,942		2,738		5,676		5,440		10,742

See specification below.

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


	2nd quarter						1st half-year					Year
(NOK in millions)	2004			2003			2004			2003		2003
Amortization of goodwill
Sonofon		81			—			119			—		—
DiGi.Com		11			10			23			24		48
Pannon GSM		81			77			162			153		308
Kyivstar		9			10			19			20		39
Other Mobile		—			2			—			5		5
Total Mobile		182			99			323			202		400

Fixed		(25	)		(1	)		(51	)		11		(95	)
Broadcast		46			53			99			103		197
EDB Business Partner		38			37			76			73		151
Other units		4			8			11			16		33
Total amortization of goodwill		245			196			458			405		686

Amortization of other intangible assets
Sonofon		204			—			334			—		—
DiGi.Com		20			20			40			41		83
Pannon GSM		154			147			307			291		564
Kyivstar		65			51			123			101		213
Other Mobile		89			112			172			211		374
Total Mobile		532			330			976			644		1234

Fixed		107			106			214			210		431
Broadcast		24			15			43			31		78
EDB Business Partner		—			2			—			2		1
Other Units		44			25			68			50		181
Total amortization of other intangible assets		707			478			1,301			937		1,925

•

Amortization of goodwill in Fixed in 2004 was an income due to amortization of negative goodwill related to Utfors AB.

Associated companies


	2nd quarter						1st half-year						Year
(NOK in millions)	2004			2003			2004			2003			2003
Telenor’s share of 1)
Net income after taxes		250			104			490			172			329
Amortization of Telenor’s net excess values		(48	)		(153	)		(155	)		(321	)		(579	)
Write-downs of Telenor’s excess values		—			(11	)		—			(11	)		(26	)
Gains on disposal of ownership interests		9			1,442			9			1,508			1,507
Net results from associated companies		211			1,382			344			1,348			1,231

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”.

•		Increased net income after taxes from associated companies compared to the second quarter of 2003 was primarily due to improved profitability in associated mobile companies and Bravida.

•		The decrease in amortization of Telenor’s net excess values compared to the second quarter of 2003 was mainly due to the consolidation of Sonofon as a subsidiary as from 12 February 2004.

•		Gain on disposal in the second quarter of 2003 was due to the sale of 9% of the shares in Cosmote, partially offset by a loss on sale of the shares in A-Pressen ASA.

Financial items


	2nd quarter						1st half-year						Year
(NOK in millions)	2004			2003			2004			2003			2003
Financial income		116			164			224			329			586
Financial expenses		(414	)		(575	)		(823	)		(1,151	)		(2,023	)
Net forreign currency gain (loss)		(8	)		(89	)		(39	)		14			(1	)
Net gains (losses) and write-downs		18			(4	)		2,609			(90	)		73
Net financial items		(288	)		(504	)		1,971			(898	)		(1,365	)

Gross interest expences		(419	)		(582	)		(824	)		(1,156	)		(2,033	)
Net interest expences		(318	)		(463	)		(625	)		(916	)		(1,549	)

•		The decrease in financial income compared to the second quarter of 2003 was mainly due to the decline in market interest rates.

•		The decrease in average interest-bearing liabilities and average interest rates contributed to the decrease in financial expenses compared to the second quarter of 2003. In the second quarter of 2003, approximately NOK 90 million was expensed for interest on legal disputes.

Taxes

•

The tax rate in Norway is 28%. The effective tax rate for the Telenor group for 2004 is estimated to be 34% of profit before taxes and minority interests. The estimated effective tax rate for Telenor for 2004 is higher than 28% mainly due to tax related to companies outside Norway, including the effect of recording deferred taxes on retained earnings in certain companies and amortization of goodwill, on which deferred tax assets have not been recognized. The actual effective tax rate for the year may deviate from the estimated rate.

•

Telenor has not recorded any tax income related to the ruling on the Sonofon case favorable to Telenor in the second quarter of 2004. Please refer to “Disputes” below.

•

On March 26, 2004, the Norwegian government issued and submitted to the Norwegian parliament (Storting) a consultation paper outlining certain proposals for a future tax reform. The main proposals relating to the taxation of companies provide for a tax exemption on dividend income and a tax exemption on capital gains deriving from the disposal of shares. As a result of such exemptions, capital losses deriving from disposals of shares would not be tax deductible. If the government’s proposals receive sufficient support in the Storting, the government might submit draft legislation relating to the proposed tax reform to the Storting in the fall of 2004, in which case the tax exemptions described above could become effective from the fiscal year commenced on January 1, 2004. Such tax changes may affect the income tax expenses for Telenor.

Balance sheet and cash flow

•

Total assets decreased by NOK 1.9 billion compared to the end of the first quarter of 2004, primarily due to the reduction in cash and cash equivalents due to payment of dividends and instalments on interest-bearing liabilities in the quarter. The increase in intangible assets was due to the investment in a license for mobile telephony in Pakistan.

•

Net interest-bearing liabilities increased by NOK 2.7 billion from the end of the first quarter of 2004 to NOK 22.0 billion at the end of the second quarter of 2004. Capital expenditures amounted to NOK 4.0 billion. This includes the capitalization of the licence in Pakistan with a net present value of NOK 1.8 billion, of which NOK 1.0 billion was paid in the second quarter of 2004 and the remainder is to be paid in annual instalments over 10 years and is recorded in the balance sheet as interest-bearing liabilities of NOK 0.8 billion. In the second quarter of 2004, Telenor paid dividends of NOK 1.7 billion and purchased own shares in the market for NOK 0.6 billion. In addition to this, in the second quarter of 2004, the equity decreased and interest-bearing liabilities increased by NOK 0.7 billion following a decision in May 2004 by the General meeting to redeem shares owned by the Kingdom of Norway corresponding to Telenor’s repurchase of own shares in the market in the first quarter of 2004, in such a way that the Kingdom of Norway’s ownership interest remained unchanged. In connection with the purchase of own shares in the market in the second quarter of 2004 the corresponding shares to be repurchased from the Kingdom of Norway amounted to NOK 0.7 billion. At the end of the second quarter of 2004, this amount has not been recorded as a reduction in equity or increase in interest-bearing liabilities.

•

Minority interests increased compared to the end of the first quarter of 2004, primarily due to net income from Kyivstar, GrameenPhone and EDB Business Partner.

DISPUTES

•

In its decision of 14 June 2004, the Oslo District Court ruled in favour of Telenor, stating that Telenor’s intragroup sale of its shares in Sonofon Holding A/S triggered a tax loss of approximately NOK 8.6 billion corresponding to a reduced tax charge of approximately NOK 2.4 billion. The judgement is not final and enforceable as the tax authorities have appealed the decision.

•

Please refer to note 24 to Telenor’s annual report for 2003 and the first quarter report for 2004 for more information about legal proceedings.

US GAAP

•

Telenor had net income in accordance with Generally Accepted Accounting Principles in the United States (US GAAP) of NOK 1,569 million in the second quarter of 2004 compared to net income in accordance with Norwegian accounting principles of NOK 1,410 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 2004

•

Continued growth in revenues is expected, in particular driven by the international mobile operations, where we experience a strong growth in the customer base in several markets.

•

The increase in the customer base in the Ukraine and in Bangladesh contributes to increased network investments. In addition, capital expenditure is expected to increase due to the new operation in Pakistan, including license costs, the purchase of satellite capacity, the consolidation of Sonofon and investments in new technology in Telenor Mobil - Norway. In total, capital expenditure is expected to be substantially higer than in 2003.

•

The sale of the Operating service division from the business area Fixed to EDB Business Partner is for Fixed-Norway expected to have a positive effect on operating profit excluding special items and a negative effect on revenues.

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 2003, and in accordance with the Norwegian accounting standard for interim reporting.

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 for 2004” contains forward- looking statements regarding the group’s expectations. All statements regarding the future are subject to inherent risks and uncertainties, and many factors can lead to actual profits and developments deviating substantially from what has been expressed or implied in such statements. These factors include the risk factors relating to Telenor’s activities described in Telenor’s Annual Report 2003 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, 22 July 2004
The Board of Directors of Telenor ASA

BALANCE SHEET

Telenor group


(NOK in millions)	30.06.2004			31.03.2004			30.06.2003			31.12.2003
Deferred tax assets		1,906			2,541			4,587			3,850
Goodwill		14,683			14,721			9,691			9,224
Intangible assets		11,072			9,405			6,399			5,536
Tangible assets		37,322			37,835			37,700			35,722
Associated companies		6,808			6,663			8,925			10,166
Other financial assets		2,429			2,553			4,640			3,848

Total fixed assets		74,220			73,718			71,942			68,346

Other current assets		11,779			10,742			10,732			9,819
Cash and interest-bearing investments		5,465			8,858			5,305			7,945

Total current assets		17,244			19,600			16,037			17,764

Total assets		91,464			93,318			87,979			86,110

Paid-in equity		27,465			28,712			29,285			29,311
Other equity		14,201			12,779			9,548			9,978
Cumulative translation adjustments		(1,536	)		(1,408	)		(2,551	)		(2,052	)

Shareholders equity		40,130			40,083			36,282			37,237

Minority interests		4,278			3,974			3,725			3,646

Total equity and minority interests		44,408			44,057			40,007			40,883

Provisions		2,678			2,884			1,557			1,645
Long-term interest-bearing liabilities		26,184			27,088			27,352			25,376
Long-term non-interest-bearing liabilities		706			753			616			754

Total long-term liabilities		26,890			27,841			27,968			26,130

Short-term interest-bearing liabilities		1,254			1,067			3,270			386
Short-term non-interest-bearing liabilities		16,234			17,469			15,177			17,066

Total short-term liabilities		17,488			18,536			18,447			17,452

Total equity and liabilities		91,464			93,318			87,979			86,110

USGAAP
Shareholders equity		42,381			43,270			39,365			42,535

CHANGE IN SHAREHOLDERS EQUITY


	01.01.2004			01.01.2004			01.01.2003		01.01.2003
(NOK in millions)	- 30.06.2004			- 31.03.2004			- 30.06.2003		- 31.12.2003
Shareholders equity as of 1 January		37,237			37,237			33,685		33,685
Net income		4,211			2,801			2,280		4,560
Dividends		12			—			—		(1,776	)
Employee share issue		23			21			—		26
Acquisition Comincom/Combellga		—			—			—		(35	)
Acquisition GramennPhone		—			—			—		(39	)
Share buy back		(1,869	)		(620	)		—		—
Translation adjustments		516			644			317		816

Shareholders equity		40,130			40,083			36,282		37,237

CASH FLOW STATEMENT

Telenor group


	2nd quarter						1st half-year						Year
(NOK in millions)	2004			2003			2004			2003			2003
Profit before taxes and minority interests		2,662			2,490			7,336			3,537			7,426
Taxes paid		(404	)		(2,657	)		(572	)		(2,722	)		(3,283	)
Net (gains) losses including write-downs of financial items		(358	)		102			(2,954	)		195			(76	)
Depreciation, amortization and write-downs		2,943			2,738			5,676			5,440			10,742
Associated companies		(211	)		(1,382	)		(344	)		(1,348	)		(1,231	)
Difference between expensed and paid pensions		(1	)		56			136			(73	)		134
Currency (gains) losses not relating to operating activities		(6	)		106			29			(48	)		(78	)
Change in other accruals		(250	)		(510	)		(497	)		(1,051	)		42
Net cash flow from operating activities		4,375			943			8,810			3,930			13,676

Payments on purchase of tangible and intangible assets		(3,341	)		(1,272	)		(4,891	)		(2,678	)		(6,536	)
Payments on purchase of subsidiaries and associated companies, net of cash received		(286	)		(193	)		(4,710	)		(205	)		(506	)
Proceeds from sale of tangible and intangible assets and businesses, net of cash payed		267			2,278			478			2,452			2,850
Proceeds from sale of and payments for other investments		52			119			3,129			(52	)		738
Net cash flow from investment activities		(3,307	)		932			(5,994	)		(483	)		(3,454	)

Proceeds and payments interest-bearing liabilities		(2,269	)		(2,050	)		(2,546	)		(2,957	)		(7,022	)
Issuance of shares and repayment of equity		15			6			22			6			25
Share buy back		(495	)		—			(1,115	)		—			—
Dividends paid		(1,692	)		(791	)		(1,692	)		(791	)		(890	)
Net cash flow from financing activities		(4,441	)		(2,835	)		(5,331	)		(3,742	)		(7,887	)

Effect on cash and cash equivalents of changes in foreign exchange rates		(38	)		8			37			87			45
Net change in cash and cash equivalents		(3,411	)		(952	)		(2,478	)		(208	)		2,380

Cash and cash equivalents at the beginning of the period		8,577			6,008			7,644			5,264			5,264
Cash and cash equivalents at the end of the period		5,166			5,056			5,166			5,056			7,644

THE BUSINESS AREAS SECOND QUARTER


																																		Profit (loss)
																																		before taxes
	Total															Operating profit						Associated						Net financial						and minority
	revenues¹⁾						of which external¹⁾				EBITDA					(loss)						companies						items						interests
(NOK in millions)	2004			2003			2004		2003		2004		2003			2004			2003			2004			2003			2004			2003			2004		2003
Mobile		8,202			5,789			7,849		5,472		3,051		2,277			1,508			1,173			205			1,539			(492	)		(609	)		1,221		2,103
Fixed		4,868			5,150			4,410		4,740		1,601		1,690			729			629			(1	)		(2	)		(119	)		(198	)		609		429
Broadcast		1,336			1,169			1,303		1,129		390		327			173			59			(5	)		(65	)		(127	)		(248	)		41		(254	)
EDB Business Partner		1,344			1,110			1,131		827		456		116			356			17			—			(12	)		(13	)		(32	)		343		(27	)
Other business units		922			1,128			798		961		120		(41	)		21			(172	)		3			(77	)		(18	)		(84	)		6		(333	)
Corporate functions and group activities		604			603			133		94		6		(2	)		(100	)		(94	)		2			(1	)		477			844			379		749
Eliminations		(1,652	)		(1,726	)		—		—		57		(17	)		52			—			7			—			4			(177	)		63		(177	)

Total		15,624			13,223			15,624		13,223		5,681		4,350			2,739			1,612			211			1,382			(288	)		(504	)		2,662		2,490

¹⁾ Revenues includes gains on disposal of fixed assets and operations

THE BUSINESS AREAS FIRST HALF YEAR


																																			Profit (loss)
																																			before taxes
	Total																Operating profit						Associated						Net financial						and minority
	revenues¹⁾						of which external¹⁾				EBITDA						(loss)						companies						items						interests
(NOK in millions)	2004			2003			2004		2003		2004			2003			2004			2003			2004			2003			2004			2003			2004			2003
Mobile		15,416			11,177			14,716		10,554		5,867			4,472			3,014			2,285			386			1,561			1,604			(1,346	)		5,004			2,500
Fixed		9,808			10,182			8,919		9,386		3,221			3,282			1,421			1,171			(6	)		—			(289	)		(420	)		1,126			751
Broadcast		2,642			2,307			2,574		2,224		738			531			283			(14	)		2			(81	)		(264	)		(480	)		21			(575	)
EDB Business Partner		2,380			2,168			1,936		1,631		584			211			398			19			—			(13	)		(29	)		(49	)		369			(43	)
Other business units		1,816			2,199			1,563		1,887		261			65			54			(185	)		(42	)		(117	)		(34	)		(189	)		(22	)		(491	)
Corporate functions and group activities		1,128			1,152			200		147		(1	)		(9	)		(192	)		(195	)		2			(2	)		979			1,763			789			1,566
Eliminations		(3,282	)		(3,356	)		—		—		27			(25	)		43			6			2			—			4			(177	)		49			(171	)

Total		29,908			25,829			29,908		25,829		10,697			8,527			5,021			3,087			344			1,348			1,971			(898	)		7,336			3,537

¹⁾ Revenues includes gains on disposal of fixed assets and operations

ANALYTICAL INFORMATION


			2002										2003						2004
	Q1		Q2		Q3			Q4			Q1		Q2		Q3		Q4		Q1		Q2
Revenues (NOK in millions)		11,563		12,011		12,210			13,042			12,606		13,223		13,491		13,801		14,284		15,624
EBITDA excluding gains and losses (NOK in millions)		2,926		3,155		3,778			3,599			4,184		4,448		4,886		4,781		5,010		5,342
Operating profit (loss) (NOK in millions)		602		691		488			(2,101	)		1,475		1,612		2,300		2,173		2,282		2,739
Profit (loss) before taxes and minority interests (NOK in millions)		31		383		(105	)		(5,445	)		1,047		2,490		2,005		1,884		4,674		2,662
Equity ratio including minority interests (%)		49.4		48.2		46.7			41.7			42.6		45.5		48.0		47.0		47.2		48.6
Net interest bearing liabilities (NOK in millions)		24,449		25,717		27,645			26,872			26,139		25,317		21,584		17,817		19,297		21,973
Net interest bearing liabilities/EBITDA excluding gains and losses last 12 months		2.6		2.5		2.3			2.0			1.8		1.6		1.3		1.0		1.0		1.1
Capex (NOK in millions)		1,879		2,161		2,169			2,680			1,230		1,314		1,460		2,450		1,471		4,012
Investments in businesses (NOK in millions)		8,875		2,271		493			772			23		268		9		263		3,749		294
No. of man-years		22,250		21,650		22,350			22,100			21,200		21,150		20,300		19,450		20,600		20,200
- of which abroad		7,700		7,800		8,600			8,900			8,700		8,700		8,100		7,450		8,650		8,750
MOBILE
Telenor Mobil - Norway
No. of mobile subscriptions (NMT + GSM) (in thousands)		2,314		2,360		2,409			2,382			2,342		2,330		2,364		2,364		2,378		2,451
No. of GSM subscriptions (in thousands)		2,249		2,299		2,352			2,330			2,294		2,285		2,324		2,327		2,346		2,422
- of which prepaid (in thousands)		1,051		1,094		1,131			1,115			1,093		1,091		1,120		1,099		1,091		1,118
Traffic minutes per GSM subscription per month, generated and terminated		171		185		186			178			178		190		195		189		192		198
Average revenue per GSM subscription per month in the quarter (ARPU):		334		351		359			340			330		346		354		326		332		348
- of which contract		481		511		528			492			480		501		519		475		488		515
- of which prepaid		162		168		171			170			163		172		174		162		154		153
No. of SMS and content messages (in millions)		391		403		444			454			452		462		500		512		488		511
Sonofon - Denmark
No. of mobile subscriptions (in thousands)		—		—		—			—			—		—		—		—		996		1,212
- of which prepaid (in thousands)		—		—		—			—			—		—		—		—		250		451
Traffic minutes per GSM subscription per month, generated and terminated		—		—		—			—			—		—		—		—		165		185
Average revenue per GSM subscription per month in the quarter (ARPU):		—		—		—			—			—		—		—		—		270		255
- of which contract		—		—		—			—			—		—		—		—		313		322
- of which prepaid		—		—		—			—			—		—		—		—		135		111
No. of SMS and content messages (in millions)		—		—		—			—			—		—		—		—		240		298
Telenor Mobile Sweden
No. of mobile subscriptions (in thousands)		—		—		—			—			52		59		65		81		84		92
- of which prepaid (in thousands)		—		—		—						26		23		28		44		48		54
Traffic minutes per GSM subscription per month, generated and terminated		—		—		—						28		41		67		76		80		104
Average revenue per GSM subscription per month in the quarter (ARPU):		—		—		—						119		160		207		199		188		202
- of which contract		—		—		—						194		248		311		294		295		311
- of which prepaid		—		—		—						44		49		56		105		105		122
No. of SMS and content messages (in millions)		—		—		—						3		3		5		8		8		11
Pannon - Hungary
No. of mobile subscriptions (in thousands)		2,001		2,146		2,311			2,450			2,514		2,514		2,564		2,618		2,596		2,588
- of which prepaid (in thousands)		1,446		1,596		1,767			1,910			1,989		1,981		2,019		2,023		1,977		1,936
Traffic minutes per GSM subscription per month, generated and terminated		113		115		112			112			104		110		113		116		111		121
Average revenue per GSM subscription per month in the quarter (ARPU):		182		184		177			177			153		165		170		173		169		176
- of which contract		383		391		401			415			386		414		416		412		396		386
- of which prepaid		97		98		94			100			86		92		97		99		94		97
DiGi.Com - Malaysia
No. of mobile subscriptions (100% in thousands)		1,159		1,284		1,454			1,616			1,803		1,946		2,055		2,207		2,416		2,585
- of which prepaid (100% in thousands)		1,044		1,176		1,351			1,519			1,708		1,850		1,953		2,101		2,301		2,453
Traffic minutes per GSM subscription per month, generated and terminated		197		189		185			185			177		175		177		176		167		164
Average revenue per GSM subscription per month in the quarter (ARPU):		169		158		138			145			123		111		117		117		116		110
- of which contract		313		331		312			352			331		336		367		357		358		352
- of which prepaid		150		142		124			131			112		100		105		105		104		98
Kyivstar - Ukraine
No. of mobile subscriptions (100% in thousands)		—		—		1,659			1,856			2,012		2,205		2,512		3,037		3,221		3,610
- of which prepaid (100% in thousands)		—		—		1,283			1,472			1,614		1,768		2,037		2,503		2,675		3,031
Traffic minutes per GSM subscription per month, generated and terminated		—		—		50			49			43		52		59		73		69		74
Average revenue per GSM subscription per month in the quarter (ARPU):		—		—		113			102			81		92		106		95		87		97
- of which contract		—		—		194			202			167		176		204		201		194		213
- of which prepaid		—		—		73			70			54		66		74		70		62		69
GrameenPhone - Bangladesh
No. of mobile subscriptions (100% in thousands)		550		625		704			769			835		928		1,047		1,141		1,520		1,795
- of which prepaid (100% in thousands)		353		424		501			563			631		725		820		899		1,258		1,501
Traffic minutes per GSM subscription per month, generated and terminated		308		297		288			298			309		312		328		320		322		313
Average revenue per GSM subscription per month in the quarter (ARPU):		191		173		167			155			133		136		143		130		123		108
- of which contract		311		297		286			303			283		295		337		327		342		298
- of which prepaid		118		104		100			95			81		89		90		76		72		70
Associated companies
No. of mobile subscriptions (100% in thousands)		12,424		14,425		14,814			16,116			17,158		15,105		17,035		19,478		21,028		24,594
FIXED - Norway
Retail market
No. of PSTN subscriptions (in thousands)		1,522		1,497		1,480			1,467			1,449		1,427		1,381		1,308		1,248		1,219
No. of ISDN subscriptions (lines in thousands)		1,803		1,818		1,818			1,828			1,816		1,800		1,755		1,682		1,600		1,548
PSTN/ISDN generated traffic (mill. minutes)		4,702		4,392		3,864			4,387			4,268		3,876		3,454		3,787		3,725		3,279
Market share of PSTN/ISDN generated traffic (%)		73		73		73			72			70		70		69		69		69		69
No. of Online subscriptions residential market (in thousands)		370		359		347			337			315		304		301		294		286		276
No. of ADSL subscriptions residential market (in thousands)		42		53		64			90			114		124		139		163		191		214
No. of ADSL subscriptions business market Norway (in thousands)		1		2		3			4			7		10		11		14		17		21
Wholesale market
No. of PSTN subscriptions (in thousands)		—		—		—			—			11		12		42		104		151		170
No. of ISDN subscriptions (lines in thousands)		—		—		—			—			14		17		52		126		188		215
No. of ADSL subscriptions (in thousands)		5		6		8			15			21		31		41		56		76		86
No. of LLUB (in thousands)		18		25		32			42			53		59		68		80		96		108
BROADCAST
No. of television subscribers in the Nordic region
- Subscribers with satellite dish (in thousands)		614		646		664			701			713		708		726		763		778		782
- Cable TV subscribers (in thousands)		557		559		561			571			575		590		594		604		605		611
- Households in small antenna TV-networks (in thousands)		1,140		1,126		1,129			1,133			1,130		1,049		1,100		1,098		1,132		1,161
- Cable TV Internet access (in thousands)		15		17		18			21			24		26		28		31		34		35

Special items


	2nd quarter						1st half-year						Year
(NOK in millions)	2004			2003			2004			2003			2003
EBITDA		5,681			4,350			10,697			8,527			18,302
Gains on disposal of fixed assets and operations		(366	)		(76	)		(374	)		(80	)		(232	)
Losses on disposal of fixed assets and operations		27			174			29			185			229
EBITDA excluding gains and losses		5,342			4,448			10,352			8,632			18,299

Expenses for workforce reductions, loss contracts and exit from activities
Mobile		7			(14	)		11			(14	)		(21	)
Fixed		24			(2	)		42			4			6
Broadcast		1			3			1			5			7
EDB Business Partner		27			57			27			57			223
Other business units		1			12			2			13			38
Corporate functions and Group activities		103			24			105			21			34
Total workforce reductions, loss contracts and exit from activities		163			81			188			86			287

Adjusted EBITDA		5,505			4,529			10,540			8,718			18,586

Write-downs
Mobile		1			19			1			27			35
Fixed		—			7			—			7			24
Broadcast		—			—			—			4			18
EDB Business Partner		—			7			—			11			28
Other business units		—			14			3			14			37
Corporate functions and Group activities		—			—			—			—			3
Total write-downs		1			47			4			63			145

Adjusted operating profit		2,564			1,838			4,868			3,341			7,989

Special items associated companies
(Gains) losses on disposal of ownership interests		(9	)		(1,442	)		(9	)		(1,508	)		(1,507	)
Other write-downs associated companies		—			11			—			11			25
Total special items associated companies		(9	)		(1,431	)		(9	)		(1,497	)		(1,482	)

Net (gains) losses and write-downs financial items		(18	)		4			(2,609	)		90			(73	)
Adjusted profit (loss) before taxes and minority interests		2,460			1,289			4,565			2,384			6,300

Reconciliations


	2nd quarter						1st half-year						Year
(NOK in millions)	2004			2003			2004			2003			2003
Net income		1,410			1,683			4,211			2,280			4,560
Minority interests		347			98			631			161			490
Taxes		905			709			2,494			1,096			2,376
Profit before taxes and minority interests		2,662			2,490			7,336			3,537			7,426
Net financial items		288			504			(1,971	)		898			1,365
Associated companies		(211	)		(1,382	)		(344	)		(1,348	)		(1,231	)
Operating profit		2,739			1,612			5,021			3,087			7,560
Depreciation and amortization		2,941			2,691			5,672			5,377			10,597
Write-downs		1			47			4			63			145
EBITDA		5,681			4,350			10,697			8,527			18,302

Net (gains) losses on disposal of fixed assets and operations		(339	)		98			(345	)		105			(3	)
EBITDA excluding gains and losses		5,342			4,448			10,352			8,632			18,299

Expenses for workforce reductions, loss contracts and exit of activities		163			81			188			86			287
Adjusted EBITDA		5,505			4,529			10,540			8,718			18,586

Operating profit		2,739			1,612			5,021			3,087			7,560
Write-downs		1			47			4			63			145
Net (gains) losses on disposal of fixed assets and operations		(339	)		98			(345	)		105			(3	)
Expenses for workforce reductions, loss contracts and exit of activities		163			81			188			86			287
Adjusted operating profit		2,564			1,838			4,868			3,341			7,989

Associated companies		211			1,382			344			1,348			1,231
Special items associated companies		(9	)		(1,431	)		(9	)		(1,497	)		(1,482	)
Adjusted associated companies		202			(49	)		335			(149	)		(251	)

Profit before taxes and minority interests		2,662			2,490			7,336			3,537			7,426
Write-downs		1			47			4			63			145
Net (gains) losses on disposal of fixed assets and operations		(339	)		98			(345	)		105			(3	)
Expenses for workforce reductions, loss contracts and exit of activities		163			81			188			86			287
Special items associated companies		(9	)		(1,431	)		(9	)		(1,497	)		(1,482	)
Net (gains) losses and write-downs financial items		(18	)		4			(2,609	)		90			(73	)
Adjusted profit before taxes and minority interests		2,460			1,289			4,565			2,384			6,300

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: 23^rd July, 2004