Telenor said its net profit for the three months ended June 30, rose to 3.25 billion kroner (euro411 million; US$568 million), compared with 2.28 billion kroner in the year-ago period. 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 an ongoing legal dispute. Telenor has been in ongoing dispute 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 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 companies, the unit has strengthened its market position in the quarter and is "estimated to further have improved its financial performance."

Sales in the three-month period rose to 23.16 billion kroner (euro2.93 billion; US$4.05 billion), from 22 billion kroner a year earlier.