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

like all companies there is a projected profit. they say “we will make 500 million off this movie.” when the sales come in and are at 400 million profit they have lost 100 million because it did not meet the projected income.

this is why companies like netflix, amazon and others claim a loss.