Telenor earnings rise 42% in Q2

Telenor's second-quarter profit rose 42% as the company benefited from higher sales, an Associated Press report said.

The Associated Press report quoted Telenor as saying that net profit for the three months ended June 30 rose to 3.25 billion kroner ($568 million) from 2.28 billion kroner ($341 million) a year earlier.

The company said lower tax rates and higher income from associated companies also helped boost the result.

The 2007 figure did not include results from its unit in Ukraine, Kyivstar, because of a legal dispute, the Associated Press report said.

Telenor has been in an ongoing tussle with Russia's Alfa Group, the key owners of Russia's OAO Vimpel Communications, over business strategy in Ukraine and Vimpelcom's offer to buy Kyivstar, where Telenor already holds a main stake, the report said.

The group said that despite the legal situation concerning Kyivstar, preventing Telenor from receiving financial information about the unit due to legal action brought by Alfa, the unit strengthened its market position in the quarter and is 'estimated to further have improved its financial performance,' the report further said.

Quarterly sales rose to 23.16 billion kroner ($4.05 billion) from 22 billion kroner ($3.2 billion) a year earlier, the report said.

The report further said in Telenor expects revenue growth of between 3% and 5% for the full year.