Moreover, our release schedule for the third and fourth quarters is significantly stronger than it has been in the past. This loss is after the non-operating charge of 5.3m to reflect the fall in the market price of Opticom as at 30 September, in which we have an investment. The loss per share was 80.6p or 49.9p before exceptional items, compared to 70.8p. The net cash outflow from operating activities was 6.6m compared to 13.1m in the corresponding period of 1997. The first three titles have achieved sales in excess of 350,000 units in the period.
Cost of sales includes royalties paid to developers in excess of development advances paid.
Royalty costs this year were 6.1m compared to 1.8m in the corresponding period of 1997 reflecting the success of the titles released this year. In addition, the release of the original Tomb Raider in the Platinum and Premier ranges resulted in a higher proportion of catalogue sales in 1998 compared to 1997, thus reducing gross margin. In accordance with Eidos accounting policy advertising costs are expensed as incurred. The total includes incremental costs of 1.9m on titles to be released after 30 September. The increase also reflects the growing use of TV advertising to promote Eidos valuable franchises.