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

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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?

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Anonymous 0 Comments

I have to mention Winston Groom, who wrote the book the movie Forest Gump was based on (55M to make 678M box).

Forrest Gump was published in 1986, and was adapted into a 1994 film of the same name starring Tom Hanks in the title role of Forrest Gump. The film propelled the novel to best-seller status, and it sold 1.7 million copies worldwide. However, Paramount Pictures utilized Hollywood accounting to deflate profitability numbers of the film and Groom received no payment for his 3% profit share in it.

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