Gross margin
The gross margin for the quarter was 70%, seven percentage points higher compared with 63% in Q1 '17, reflecting the shift of revenue mix towards higher margin data, software & services revenue.
At constant currency rates for the US dollar and GB pound, Q1 '18 gross margin would have been 67% and the operating result would have been €3.7 million lower.
Operating expenses
Total operating expenses for the quarter were €127 million, which is €8 million lower compared with the same quarter last year (Q1 '17: €135 million). The decrease in R&D, SG&A and marketing expenses is driven by our decreasing Consumer segment. The decrease is partly offset by increased investments in research and development in our navigation technology.
Depreciation and amortisation
(€ in millions) | Q1 '18 | Q1 '17 |
y.o.y.
|
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Cost of sales | 1.4 | 2.6 | -46% | ||||
Research and development | 2.0 | 3.0 | -33% | ||||
Amortisation of technology & databases | 24.1 | 22.4 | 7% | ||||
Marketing | 0.1 | 0.1 | 0% | ||||
Selling, general and administrative | 9.8 | 7.4 | 32% | ||||
Total | 37.4 | 35.5 | 5% | ||||
Of which acquisition-related amortisation | 13.1 | 13.9 | -6% | ||||
Change percentages and totals calculated before rounding. |
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