From a regional perspective, 78% of 2016 revenue was generated in Europe (FY '15: 77%), 17% in North America (FY '15: 18%) and the remaining 5% in the rest of the world (FY '15: 5%).

Gross margin

The gross margin for the quarter was 58%, which is 9 percentage points higher compared with 49% in Q4 '15. The year on year increase was mainly due to a change in our product mix, with a relatively higher portion of recurring high gross margin data, software & services revenue. In addition, the Q4 '15 gross margin was negatively impacted by an impairment charge of €11 million related to certain Automotive customer specific technology being recorded as part of cost of sales.

On a full year basis, we reported a gross margin of 57% in 2016 (FY '15: 52%). At constant currency rates for the US dollar and GB pound, our FY '16 gross margin and operating result would have been 1% higher.

Operating expenses

Total operating expenses for the quarter were €154 million, which is €15 million higher compared with the same quarter last year (Q4 '15: €139 million). The higher operating expenses were mainly driven by higher service platform charges and higher amortisation related to certain technology platforms that went operational in 2016.

On a full year basis, total operating expenses amounted to €557 million compared with €518 million in 2015, an increase of €39 million year on year. This increase is mainly caused by higher depreciation and amortisation costs. In addition, last year’s operating expenses included a one-off gain from a settlement of a litigation case.

FX sensitivity