8. |
FINANCE INCOME, FINANCE COSTS AND NET FOREIGN EXCHANGE LOSSES |
| Six months ended 30 June 2024 Reviewed Rm |
Six months ended 30 June 2023 Restated1 Reviewed Rm |
Financial year ended 31 December 2023 Audited Rm |
||||
| Interest income on loans and receivables | 521 | 739 | 1 212 | |||
|---|---|---|---|---|---|---|
| Interest income on bank deposits | 804 | 959 | 1 843 | |||
| Finance income | 1 325 | 1 698 | 3 055 | |||
| Interest expense on financial liabilities measured at amortised cost | (4 720) | (4 942) | (11 292) | |||
| Lease liability finance cost | (3 291) | (4 124) | (7 662) | |||
| Finance costs2 | (8 010) | (9 066) | (18 954) | |||
| Net foreign exchange losses2 | (16 271) | (14 804) | (23 170) | |||
| 1 | Restated, refer to note 20 for details on the restatement. |
| 2 | Foreign exchange losses were previously included in finance costs and have been disaggregated in the current year and comparative numbers have been re-presented accordingly. |
Nigeria currency devaluation
During the 2024 interim period, the naira devalued from NGN907 as at 31 December 2023 to NGN1 505 as at 30 June 2024 against the US$ and foreign exchange losses of NGN888 billion (R13 750 million) were recognised in MTN Nigeria.
The foreign exchange losses are due to unrealised losses that mainly relate to the revaluation of the dollar component of tower lease liabilities and realised losses relating to the settlement of letters of credit for dollar denominated capital acquisitions.