Uninor Continues to Demonstrate Robust Business Growth

• Q3 2014 gross revenue up by 38% year-on-year

• 131% year on year growth in Internet revenues for quarter ending Sep 2014

Uninor has reported a 38 per cent year on year improvement in gross revenue amid challenging operating environment in Q3 FY 2014. As a part of its third quarter result presentation (quarter ending September) in Oslo, Telenor Group reported sustained business growth of its operation in India.

Uninor’s strong business performance continued with 1.8 million new subscriptions being added in its six circles during the third quarter. The average revenue per user (ARPU) for the company has also gone up by 4.4 per cent year-on-year to INR 104 in the quarter. This growth comes despite three circles -- Andhra Pradesh, UP East and UP West -- getting impacted due to natural calamities.

“Uninor’sSabseSasta strategy has enabled us to attract new subscribers. We saw a 38 percent year on year improvement in our gross revenue and an addition of 1.8 million new customers during the last quarter.  The demand for Internet has consistently been growing. Uninor recorded a year on year growth of 72 per cent in Internet subscribers and 131 per cent in Internet revenues in the Quarter ending Sep 2014. With the completion of network expansion across the six circles and a robust distribution capability, we are focusing on strengthening our market position,” said Morten KarlsenSorby, CEO, Uninor.

The ARPU growth was driven by higher share of Internet users and improved quality of its subscriber base. Uninor has around 19 per cent subscribers accessing Internet services actively.

Uninor is a pre-paid only operator and offers pre-paid products for the mass market at ‘SabseSasta’ or ‘lowest in the market’ tariffs. The company launched its “Internet for All” strategy together with its SabseSasta Facebook and SabseSastaWhatsapp products earlier this year.

Uninor Q3 2014 result highlights:

• Uninor accomplishes 88% of the new sites rollout in Q3

• -Telenor completes 100% acquisitions of the Indian entity

• 1.8 million additional subscription in Q3 2014

• Subscriber base up by 32 per cent YoY

Last quarter the company completed 88 percent of its new network expansion planned for this year. The single largest network expansion program initiated in the first quarter gained speed in the third quarter, with 3,100 new sites launched during the third quarter.

“We declared early on this year that 2014 will be about investments, expansion and growth for Uninor. Of the total planned 5,000 new sites 4,400 sites are now deployed exit Q3’14. While the emphasis on achieving profitability will continue, Uninor will keep its most affordable tariffs position in the market.” said Sorby.

In October this year, Telenor Group also announced acquisition of additional 26 per cent ownership stake in Telewings Communications Services Pvt Ltd, held by Lakshdeep Investment & Finance.  As a result, Telenor now takes 100 percent ownership of Telewings that operates under the brand name Uninor here.

Uninor also received a letter of intent for spectrum acquired in February 2014 auction.  The company acquired a new circle -- Assam -- in the auction along with additional spectrum in four of its existing circles.  The preparations are underway to launch the circle of Assam.

About Uninor :

Uninor is a fully owned subsidiary of the Telenor Group – one of the largest integrated communications company in the world with headquarters in Oslo, Norway.  Uninor’s pre-paid GSM mobile services are commercially available in the six circles of UP (West), UP (East), Bihar (including Jharkhand), Andhra Pradesh, Maharashtra and Gujarat. Together, these circles account for more than 50per cent of India’s population giving Uninor the ability to serve every second person in India. Uninor's three-pillar strategy of being the best in basic services, mass market distribution and low cost operations has helped the company grow to be at the 4th position in customer market share in 3 of its best circles and achieve the fastest break-even as a company in just 4 years of operations. The affordable tariffs of Uninor empowers ~42 million subscribers to enjoy the benefits of wireless voice and data services through its simple proposition of – ‘SabseSasta’ (lowest) tariffs for all basic services. For more information, please visit www.uninor.in | www.twitter.com/UninorNews

About Telenor Group:

Telenor Group is an international provider of tele, data and media communication services. Telenor Group has mobile operations in 13 markets in the Nordic region, Central and Eastern Europe and in Asia, as well as an economic stake of 33 per cent in VimpelCom Ltd., operating in 17 markets. Headquartered in Norway, Telenor Group is one of the world’s major mobile operators with 176 million mobile subscriptions in its consolidated operations per Q2 2014, revenues of NOK 104 billion in 2013, and a workforce of about 33,000. For more information about Telenor Group, please visit www.telenor.com