Gross margin
The gross margin for the quarter was 59%, which is one percentage point higher compared with the same quarter last year. On a full year basis, gross margin was 62% (FY '16: 57%). At constant currency rates for the US dollar and GB pound, FY '17 gross margin and operating result would have been the same.
Operating expenses
Total operating expenses for the quarter were €160 million, which is €6 million higher compared with the same quarter last year (Q4 '16: €154 million). The increase results from additional amortisation charges partly offset by lower personnel related cost.
On a full year basis, total operating expenses amounted to €764 million compared with €557 million in 2016, an increase of €207 million year on year. Excluding the goodwill impairment charge our operating expenses increased by €38 million. The increase resulted from restructuring charges in our Consumer business, accelerated amortisation of some customer relationships and the disposal of some technology assets.
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FX sensitivity
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| (€ in millions, unless stated otherwise) |
Q4 '17
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Q4 '17
recalculated at Q4 '16 FX rates1 |
FY '17
actual |
FY '17
recalculated at FY '16 FX rates1 |
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| Revenue | 219.6 | 223.2 | 903.4 | 911.0 | ||||||
| Gross result | 130.6 | 130.5 | 564.0 | 568.3 | ||||||
| Gross margin | 59% | 58% | 62% | 62% | ||||||
| EBIT (FY excl. impairment charge) | -29.5 | -30.9 | -31.2 | -30.0 | ||||||
| EBIT margin (FY excl. impairment charge) | -13% | -14% | -3% | -3% | ||||||
| FX RATES IN € | Q4 '17 | Q4 '16 | FY '17 | FY '16 | ||||||
| US dollar | 1.18 | 1.09 | 1.13 | 1.11 | ||||||
| GB pound | 0.88 | 0.87 | 0.87 | 0.81 | ||||||
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¹ The Q4 '17/FY '17 income and expense in US dollar and GB pound have been converted to euro using Q4 '16 / FY '16 average exchange rates. All other foreign currencies have not been converted. |
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Depreciation, amortisation and impairment
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| (€ in millions) | Q4 '17 | Q4 '16 |
y.o.y. change |
FY '17 | FY '16 |
y.o.y. change |
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| Cost of sales | 4.1 | 2.6 | 57% | 14.4 | 8.8 | 64% | ||||||||
| Research and development | 5.0 | 2.5 | 98% | 14.2 | 11.6 | 22% | ||||||||
| Amortisation of technology & databases | 41.1 | 27.2 | 51% | 112.3 | 91.5 | 23% | ||||||||
| Marketing | 0.1 | 0.1 | 24% | 0.3 | 0.3 | 11% | ||||||||
| Selling, general and administrative | 16.1 | 6.7 | 142% | 31.1 | 19.8 | 57% | ||||||||
| Impairment charge | 168.7 | |||||||||||||
| Total | 66.3 | 39.1 | 70% | 341.0 | 132.0 | 158% | ||||||||
| Of which acquisition-related amortisation and impairment | 25.1 | 14.2 | 235.4 | 55.3 | ||||||||||
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Change percentages and totals calculated before rounding. |
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