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

The marketing expenses are usually higher than production budget for a big Hollywood movie. Let’s say a movie grossed $500 million, that means studio earns roughly $200 million. So if the production budget and marketing budget total around $210 million, that means there was a loss of $10 million for studio.