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1 Reason Verizon Could Have a Great 2014

By Demitri Kalogeropoulos – Jan 22, 2014 at 1:48PM

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Why this Dow giant has a bright future ahead for its wireless business.

Verizon (VZ -0.15%) 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.

Fool contributor Demitrios Kalogeropoulos has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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