How do movies that gross many millions of dollars over their budget still result in the production company losing money?

Question

For example- I looked at The Mummy (2017) on Wikipedia, which had a budget of $125-195 million, and grossed $410 million worldwide at the box office, yet it also says the studio lost $95 million. How is that possible?

In: 99

Answer 1

They do what is now called Hollywood Accounting: [https://en.wikipedia.org/wiki/Hollywood_accounting](https://en.wikipedia.org/wiki/Hollywood_accounting)

You basically keep increasing your expenditures post-factum as you make more profit, so in the end you only just break even or lose money.