In the quarter, we announced a partnership with PSA Group, our first telematics deal with an Automotive OEM, to accelerate telematics penetration by connecting customers to a service platform by using factory-installed telematics boxes. Our WEBFLEET fleet management product will be available for all connected Peugeot, Citroën, and DS fleet vehicles. As of this quarter, the service will become accessible in France, Spain, Belgium and the Netherlands.

We also launched WEBFLEET for Sales Cloud on the Salesforce AppExchange. The app integrates TomTom’s telematics platform with Salesforce, making it easier for sales staff to use Salesforce on the road. It also enables companies to manage their sales forces more efficiently.

Hardware and Content & Services revenue split

Content & Services revenue for the quarter was €122 million or 46% of total revenue (Q2 '15: 44%).

Gross margin

The gross margin for the quarter was 55%, which is 4 percentage points higher compared with 51% in Q2 '15. The year on year increase was due to an increase in content and services revenue as percentage of our total revenue.

Operating expenses

Total operating expenses for the quarter were €133 million, €1.5 million lower compared with the same quarter last year (Q2 '15: €134 million). Both this quarter and the same quarter last year contained a one-off gain. This quarter we had a positive outcome on a pending customs case; last year we had a positive outcome on a litigation settlement. Both gains have been reported in the SG&A line. Excluding one-off effects our operating expenses showed a modest year on year increase resulting from the investments needed to support our Automotive order book.

FX sensitivity