Oslo - Norwegian telecommunications group Telenor Wednesday said its 2008 fourth quarter earnings increased year-on-year, but added it would not pay a dividend since it wanted to secure cash flow.

Earnings before interest, taxes, depreciation and amortization (EBITDA) were 9.9 billion kroner (1.47 billion dollars), compared to 8.8 billion kroner in the corresponding business period of 2007.

Sales in the quarter were up 4 per cent year-on-year to 29.9 billion kroner.

In a comment, chief executive Jon Fredrik Baksaas said a previously announced deal to secure a 60-per-cent controlling stake in Indian group Unitech Wireless would be financed through "a combination of cash generated from operations and additional debt."

In order to secure cash flow, Telenor's board proposed that no dividend be paid to shareholders for 2008 or for 2009.

Facing a "more challenging business environment" in 2009, Telenor said it would focus on cost efficiency.

Baksaas said Telenor had added 5.5 million mobile telephone subscriptions during the fourth quarter, reaching 164 million subscribers.

In its Norwegian home, Telenor estimated it had 54 per cent of the mobile market and 61 per cent of the fixed-line market, measured in traffic minutes.

For the full year of 2008, group sales increased 6 per cent to 111 billion kroner, generating EBITDA of 38.5 billion kroner, a 2- billion-kroner increase on 2007.

Citing uncertainty over global economic development, the group said revenues were likely to be in line with 2008.

In addition to Norway and neighbouring Sweden and Denmark, Telenor has operations in Hungary, Serbia, Ukraine, Montenegro, Pakistan, Thailand, Malaysia and Bangladesh. (dpa)