The wireless carrier, Verizon Communications, reported a healthy profit on Thursday. The revenue is mainly from the wireless business that made millions from the smartphone sales, services, and subscription that keeps growing steadily.
The company’s investors were reportedly very satisfied and happy with the results in spite of the communication company’s increase of smartphone plan prices and cutting down the unlimited data service these past few years. Customers just keep coming and subscribing and seems like they are more willing to spend now in their monthly bills.
According to analyst Tero Kuittinen of Alekstra, “It’s just amazing that the average revenue per account keeps growing.” Verizon’s marketing strategy is very impressive, it continues to bring in money from the existing customers. He also called the new customers as “low-quality” subscribers, people who are always on the budget who holds for a very long time before buying new smartphones.
The net income of Verizon Communications increased $1.95 billion or 15.8 percent. That also means an increase of share by 68 cents. Revenue rose by $29.4 billion or 4.2 percent.
With this year’s total revenue, it is $19.5 billion and from last year’s report, it increased 6.8 in the first quarter of 2013.
Verizon activated more than seven million smartphones in just the first quarter and most of these smartphones were iPhones from Apple that accounts for 4 million units. The shared-data plans backed up the revenue and help it increase by $150.27 per account.