1 Reason Verizon Could Have a Great 2014

Verizon (NYSE: VZ  ) recently posted strong earnings growth to close out 2013, as adjusted profits jumped by 74% over the prior-year period. While there were a few factors behind that earnings pop, one was particularly helpful: Verizon's rising average revenue per account, or ARPA, in its wireless business.

In the video below, Fool contributor Demitrios Kalogeropoulos notes how that metric rose by 7% to hit $157 per month last quarter and why it is so important to the company's results. Looking ahead, investors should expect Verizon's ARPA to keep growing as more of its subscriber base makes the jump to smartphones. But perhaps the best news for the company's shareholders is that Verizon stands to gain a bigger share of the profits from these successes after it completes its acquisition of the wireless business from Vodafone in the next few weeks.

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  • Report this Comment On January 22, 2014, at 5:42 PM, dumdanswer wrote:

    the only reason verizons profits are so high is because of overage charges and customers having to buy more data then they need and not using them and losing them. and lots of customer have two year contracts as soon as mine is overi'm dropping Verizon.

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