Macau casino junket investor Iao Kun Group Holding Company Ltd (IKGH) is up for a challenging year ahead as it see its profits plunge 57 percent to $17.9 million in the first three months of 2016.

In a statement, IKGH reported a net loss of US$3.5 million for the three months ended March 31, compared to a net profit of US$17.1 million in the prior-year period. Stocks of IKGH traded in the red at 3.04 percent during Tuesday’s market closing, following the 2016 first quarter earnings’ announcement.

“The first quarter of 2016 continued to see a challenging environment both globally and with respect to the VIP market in Macau, and as a result, we continue to prudently manage our capital,” said Mr. Lam Man Pou, chairman of IKGH. “While we remain positioned to benefit from any turnaround in the VIP market, we continue to seek additional opportunities in overseas markets to further diversify our revenue streams. We remain committed to expanding our overall presence and generating long-term value for our shareholders.”

The Nasdaq-listed company attributed the lower first quarter profits to several factors, including “lower rolling chip turnover during the quarter, as well as a reduction of players for VIP baccarat, consistent with the overall decline of gaming revenue in Macau.”