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

It’s called “Hollywood Accounting” and the losses are purely on paper. Designed to withhold any profit sharing agreements that may have come into agreement through the many hands that help create the movie.