CCO's International division, with lower profit margins thanks to heavier regulation and greater competition, continues to underperform domestic operations.
CCO advertising-based revenue sensitive to economic cycles
Top Contributor: Jay | Created when NYSE:CCO was $25.91 | Edit | History
CCO generates all of its revenue from advertising, and the company is highly sensitive to economic changes in the U.S., where it generated over 85% of its operating income in 2006 (compared to 45% of revenue). Overall GDP growth and consumer spending patterns drive advertising spending.
Although digital signage presents great growth opportunities, future regulations limiting brightness or power to distract drivers on major highways may limit digital displays.