Our base of active users of LIVE Services nearly tripled compared to Q2 2010 to 1.1 million. Compared to the same period last year, we have seen an increase in sales of LIVE devices as a percentage of total PND volume in Europe from 20% to 24%. The attachment rate, which is the percentage of customers that renew their LIVE Services subscription after the initial trial period, is increasing from the low twenties level that we have seen over the past quarters.
In the quarter Consumer introduced the GO LIVE 800 series as an addition to the GO range. We continued the geographical roll-out of our real time traffic offering and made HD Traffic available on all our LIVE devices in the US. The unique combination of HD Traffic and dynamic routing is now available in 21 countries across the globe.
Automotive extended its partnership with Fiat into the US. The Fiat 500 was introduced in the US market with the Blue&Me TomTom navigation solution offered as an option. A milestone was reached with 1 million Carminat TomTom systems sold by Renault.
Licensing expanded its map coverage in Latin America by adding Venezuela to the already covered countries of Mexico, Brazil, Argentina, Uruguay, Chile, French Guiana and the French Overseas Territories. In the quarter we launched our real time traffic portfolio for governments and enterprises in the US, UK, France and Belgium. Our portfolio of products, including Enterprise Traffic, HD Flow and HD Route Times, is now available in 14 countries. The pipeline of opportunity for our traffic solutions is increasing.
Business Solutions announced a partnership with Tracker, South Africa's leading vehicle tracking provider. In Q2, the number of subscribers increased by 9,000 to 152,000, resulting in a year on year increase of 32%. We won significant new contracts which will be added to our subscriber base in the coming quarters.
Financial review
Revenue
The group generated €314 million of revenue for the quarter, a decrease of 13% compared to the same quarter last year (Q2 2010: €362 million) and a 19% increase sequentially (Q1 2011: €265 million). Year on year, revenue for Consumer declined which was partially offset by an increase in revenue by Automotive and Business Solutions.
The revenue of the Consumer business unit over the past quarter amounted to €209 million which is a €64 million decrease year on year (Q2 2010: €273 million) and an increase of €52 million sequentially (Q1 2011: €157 million). The year on year decrease was driven by lower PND sales as the PND market sizes in our core geographies declined in an overall weak consumer electronics market.
Automotive revenue grew by €15 million or 34% to €60 million compared to the same quarter last year (Q2 2010: €44 million). This growth was driven by increased system sales due to existing customers offering our solutions on more models, as well as by greater demand for our maps. Sequentially revenue was flat (Q1 2011: €60 million).
Licensing revenue decreased year on year by €0.8 million or 3% to €32 million and decreased by €2.3 million sequentially (Q2 2010: €33 million, Q1 2011: €34 million). The sequential decrease is the result of a one-off royalty correction of €4 million in the previous quarter. Year on year we continue to see growth from our internet and wireless segment being offset by a decline in revenue in the PND segment.
Business Solutions revenue increased by €1.5 million or 12% year on year to €14 million (Q2 2010: €12 million) driven by growth of the subscriber base. Sequentially revenue was flat (Q1 2011: €14 million).
Hardware revenue for the quarter was €218 million across the group, a decrease of 20% year on year (Q2 2010: €274 million) and an increase compared to the first quarter of 29% (Q1 2011: €169 million).
Content & Services revenue was €96 million for the quarter compared to €88 million in Q2 2010, an increase of 9%. Consumer and Automotive were the main contributors to the increase compensating for lower Licensing revenue. Sequentially, Content & Services revenue for the quarter was flat. Content & Services revenue represented 31% of total revenue (Q2 2010: 24%, Q1 2011: 36%).
Gross margin
The gross margin for the group was 51%. The gross margin was stable compared to the same quarter last year and down by 2 percentage points sequentially (Q2 2010: 51%, Q1 2011 53%). The sequential decrease was the result of a change in the revenue mix with proportionally more Consumer hardware revenue compared to our Licensing and Business Solutions revenue in the second quarter versus the first quarter.
Impairment charge
We recorded a non-cash impairment charge of €512 million. The reduction
in value of intangible assets mainly reflects the reduced outlook for
the PND market. Of the impairment charge, €473 million relates to
goodwill and €39 million to other intangible assets.
