8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report: August 8, 2012

CINCINNATI BELL INC.

(Exact name of registrant as specified in its charter)

Ohio (State or other jurisdiction of incorporation)	1-8519 (Commission File Number)	31-1056105 (IRS Employer Identification No.)
221 East Fourth Street Cincinnati, Ohio (Address of principal executive offices)		45202 (Zip Code)

Registrant's telephone number, including area code: (513) 397-9900

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

1

Section 2 - Financial Information

Item 2.02Results of Operations and Financial Condition

On August 8, 2012, Cincinnati Bell Inc. reported its financial results for the second quarter 2012. The earnings release is attached as Exhibit 99.1.

Section 7 - Regulation FD

Item 7.01     Regulation FD Disclosure

On August 8, 2012, John F. Cassidy, the Company's president and chief executive officer, Kurt A. Freyberger, the Company's chief financial officer, Gary J. Wojtaszek, the president of CyrusOne, and Theodore H. Torbeck, the president of Cincinnati Bell Communications, will present second quarter 2012 results. The presentation will be webcast both live and on-demand. To listen, go to the Investor Relations section of www.cincinnatibell.com, click on the Webcasts/Presentations tab and follow the instructions for accessing the webcast.

A copy of the presentation to be made during the meeting is attached to this Current Report as Exhibit 99.2.

The information in Items 2.02 and 7.01 and the exhibits attached to this Current Report as Exhibits 99.1 and 99.2 are being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Act of 1934 or otherwise subject to the liabilities of that Section nor shall they be deemed incorporated by reference into any filing under the Securities Act of 1933 or the Securities Act of 1934, except as shall be expressly stated by specific reference in such filing.

Item 9.01Financial Statements and Exhibits.

(c)	Exhibits
	Exhibit 99.1	Press release dated August 8, 2012
	Exhibit 99.2	Presentation made during the Cincinnati Bell second quarter 2012 earnings conference call on August 8, 2012

2

Cautionary Statement Concerning Forward-Looking Statements

This report and the documents incorporated by reference herein contain forward-looking statements regarding future events and results that are subject to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, are statements that could be deemed forward-looking statements. These statements are based on current expectations, estimates, forecasts, and projections about the industries in which we operate and the beliefs and assumptions of our management. Words such as “expects,” “anticipates,” “predicts,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “continues,” “endeavors,” “strives,” “may,” or variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, any statements that refer to projections of future financial performance, anticipated growth and trends in businesses, and other characterizations of future events or circumstances are forward-looking statements. Readers are cautioned these forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties, which could cause actual results to differ materially and adversely from those reflected in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in this release and those discussed in other documents the company filed with the Securities and Exchange Commission (SEC). More information on potential risks and uncertainties is available in our recent filings with the SEC, including Cincinnati Bell's Form 10-K report, Form 10-Q reports and Form 8-K reports. Actual results may differ materially and adversely from those expressed in any forward-looking statements. The company undertakes no obligation to revise or update any forward-looking statements for any reason. The forward-looking statements included in this report represent company estimates as of August 8, 2012. Cincinnati Bell anticipates that subsequent events and developments will cause its estimates to change.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		CINCINNATI BELL INC.
Date:	August 8, 2012	By:	/s/ Christopher J. Wilson
			Christopher J. Wilson
			Vice President, General Counsel and Secretary

3

Exhibit Index

Exhibit No.	Exhibit
99.1	Press release dated August 8, 2012
99.2	Presentation made during Cincinnati Bell second quarter of 2012 earnings conference call on August 8, 2012

4

EX-99.1

Cincinnati Bell Reports Second Quarter 2012 Results

• Second quarter Adjusted EBITDA improves sequentially and year-over-year to $140 million

• First-half 2012 revenue of $731 million is the highest generated since 2003

• CyrusOne second quarter revenue grows 20 percent year-over-year

CINCINNATI - August 8, 2012 - Cincinnati Bell Inc. (NYSE:CBB) today announced financial results for the second quarter of 2012. For the quarter, revenue was $368 million, comparable to the second quarter of 2011 and improved from $363 million generated in the first quarter of 2012. Operating income for the quarter was $65 million compared to $78 million in the second quarter of 2011, while net income of $5 million resulted in diluted earnings per share of 1 cent compared to 5 cents in the second quarter of 2011, both down from 2011 due primarily to a $13 million non-cash impairment write-down of assets. Adjusted earnings before interest, taxes, depreciation and amortization¹ (Adjusted EBITDA) for the second quarter of 2012 were $140 million, an improvement from $137 million generated in the same period of 2011 and $139 million in the first quarter of 2012.

For the first half of 2012, Cincinnati Bell generated revenue of $731 million and Adjusted EBITDA of $278 million, which were largely in-line with 2011 amounts of $728 million and $280 million, respectively. Operating income was $146 million, down from $164 million in the first half of 2011 due largely to the asset write-down mentioned above.

“The success of CyrusOne and Fioptics continues to be a strong catalyst for the growth in Cincinnati Bell's revenue and Adjusted EBITDA despite the challenges of ongoing access line and wireless subscriber losses,” said Jack Cassidy, president and chief executive officer. “This success helped to generate our highest first half revenue since 2003, and keeps us on track to meet our guidance for 2012.”

Quarterly Highlights

• For the quarter, Data Center Colocation revenue of $54 million increased 20 percent compared to the second quarter of 2011, while the segment's Adjusted EBITDA increased 12 percent to $29 million, resulting in an Adjusted EBITDA margin² of 53 percent. At the end of the quarter, the segment had 801,000 square feet of total data center capacity and utilization was 85 percent.

• Wireline revenue for the quarter was $184 million, up from $182 million in the first quarter of 2012 and down slightly from $185 million in the second quarter of 2011, as growth from the segment's Fioptics product suite and enterprise products continues to have a positive impact on revenue and to mitigate the impact of access line losses. Adjusted EBITDA in the quarter was $88 million, comparable to $89 million in the first quarter of 2012 and $90 million in the second quarter of

2011. Wireline Adjusted EBITDA margin in the quarter was 48 percent, down slightly from 49 percent in both the first quarter in 2012 and the second quarter in 2011.

• For the quarter, Wireless revenue was $62 million and Adjusted EBITDA was $24 million, resulting in a strong Adjusted EBITDA margin of 39 percent.

Financial and Operations Review

“We are extremely pleased with the 20 percent revenue growth of CyrusOne, and continue to believe our investment in this business and industry will provide high returns to our shareholders,” said Kurt Freyberger, chief financial officer. “The Communications business also performed well, growing quarterly revenue sequentially and maintaining strong Adjusted EBITDA margins.”

Data Center Colocation Segment

Revenue for the quarter was $54 million, an increase of $9 million or 20 percent compared to the second quarter in 2011 as a result of significant sales of data center space during the past year. The segment had an operating loss of $2 million in the second quarter of 2012 due largely to the $13 million non-cash write-down of facilities and intangibles primarily associated with its Gramtel acquisition in 2007. Adjusted EBITDA in the quarter of $29 million does not include this write-down and increased 12 percent year-over-year, reflective of higher revenues partially offset by expected additional selling and administrative costs to support the growing operation. Adjusted EBITDA margin for the second quarter remained strong at 53 percent.

CyrusOne commissioned an additional 19,000 square feet of data center space during the quarter and decommissioned low-value legacy space totaling 24,000 square feet, resulting in data center capacity of 801,000 square feet at the end of the second quarter.  The company plans to redevelop the decommissioned space to conform to the high-density enterprise power standard it currently deploys, and expects to be able to charge increased rent on this redeveloped space.  Excluding the decommissioned space, the company sold an additional 19,000 square feet of space, resulting in quarter-end utilization of 85 percent, comparable to the first quarter of 2012 and down from 90 percent utilization in the second quarter of 2011.

Wireline Segment

For the quarter, Wireline revenue was $184 million, down slightly from $185 million in the second quarter of 2011 and improved from $182 million in the first quarter of 2012. Operating income amounted to $55 million, similar to the second quarter in 2011, while Adjusted EBITDA totaled $88 million, slightly lower than $90 million in the second quarter of 2011. The Adjusted EBITDA margin in the quarter was 48 percent compared to 49 percent in the same period a year ago. The growth of the company's entertainment, data and VoIP product lines, combined with its ongoing cost reduction efforts, continue to

offset the impact of access line losses on revenue and Adjusted EBITDA.

During the quarter, the company continued to invest in its Fioptics footprint, passing 22,000 additional homes and businesses and ending the quarter with a total of 169,000 units passed. Wireline added 4,000 new Fioptics entertainment and high-speed internet subscribers during the quarter, bringing each of the entertainment and high-speed internet subscriber bases to 47,000 at the end of the quarter. Total high-speed internet subscribers remained flat at 257,000, as the increase in Fioptics subscribers was offset by a decrease in DSL high-speed internet subscribers.

Wireless Segment

Wireless revenue for the quarter decreased to $62 million from $70 million in the second quarter of 2011, as subscriber losses from a competitive environment continued to challenge the segment. Despite the lower revenue, operating income in the quarter was $16 million, up from $15 million in the second quarter of 2011, and Adjusted EBITDA of $24 million was comparable to the same period a year ago. As a result, the segment generated a strong Adjusted EBITDA margin of 39 percent in the quarter.

Total wireless subscribers at the end of the quarter decreased to 430,000 from 487,000 at the end of the second quarter in 2011. The segment continues to grow its smartphone subscriber base, ending the quarter with a total of 127,000 smartphone subscribers, up from 113,000 at the end of the second quarter in 2011. Postpaid smartphone subscribers at quarter-end represented 36 percent of the total postpaid subscribers, up from 30 percent at the end of the second quarter in 2011.

IT Services and Hardware Segment

For the quarter, revenue was $77 million compared to $76 million in the second quarter of 2011, while Adjusted EBITDA decreased to $3 million from $4 million in the same period a year ago. Adjusted EBITDA margin in the quarter was 4 percent, down from 5 percent in the second quarter of 2011.

2012 Outlook

Cincinnati Bell reaffirms its financial guidance for 2012:

Category	2012 Guidance
Revenue	$1.5 billion
Adjusted EBITDA	Approx. $530 million*

*Plus or minus 2 percent

Conference Call/Webcast

Cincinnati Bell will host a conference call today at 10:00 a.m. (ET) to discuss its results for the second quarter of 2012. A live webcast of the call will be available via the Investor Relations section of

www.cincinnatibell.com. The conference call dial-in number is (866) 780-1078. Callers located outside of the U.S. and Canada may dial (816) 581-1570. A taped replay of the conference call will be available one hour after the conclusion of the call until 10:00 a.m. on Wednesday August 22, 2012. For U.S. callers, the replay will be available at (888) 203-1112. For callers outside of the U.S. and Canada, the replay will be available at (719) 457-0820. The replay reference number is 5436541. An archived version of the webcast will also be available in the Investor Relations section of www.cincinnatibell.com.

Safe Harbor Note

This release and the documents incorporated by reference herein contain forward-looking statements regarding future events and our future results that are subject to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, are statements that could be deemed forward-looking statements. These statements are based on current expectations, estimates, forecasts, and projections about the industries in which we operate and the beliefs and assumptions of our management. Words such as “expects,” “anticipates,” “predicts,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “continues,” “endeavors,” “strives,” “may,” variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, any statements that refer to projections of our future financial performance, our anticipated growth and trends in our businesses, and other characterizations of future events or circumstances are forward-looking statements. Readers are cautioned these forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties, which could cause our actual results to differ materially and adversely from those reflected in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in this release and those discussed in other documents we file with the Securities and Exchange Commission (SEC). More information on potential risks and uncertainties is available in our recent filings with the SEC, including Cincinnati Bell's Form 10-K report, Form 10-Q reports and Form 8-K reports. Actual results may differ materially and adversely from those expressed in any forward-looking statements. We undertake no obligation to revise or update any forward-looking statements for any reason.

Use of Non-GAAP Financial Measures

This press release contains information about adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA), Adjusted EBITDA margin, free cash flow, net income excluding special items, and net debt. These are non-GAAP financial measures used by Cincinnati Bell management when evaluating results of operations and cash flow. Management believes these measures also provide users of the financial statements with additional and useful comparisons of current results of operations and cash flows with past and future periods. Non-GAAP financial measures should not be construed as being more important than comparable GAAP measures. Detailed reconciliations of these non-GAAP

financial measures to comparable GAAP financial measures have been included in the tables distributed with this release and are available in the Investor Relations section of www.cincinnatibell.com.

¹Adjusted EBITDA provides a useful measure of operational performance. The Company defines Adjusted EBITDA as GAAP operating income plus depreciation, amortization, restructuring charges, asset impairments, components of pension and other retirement plan costs related to interest costs, asset returns, and amortization of actuarial gains and losses, and other special items.

²Adjusted EBITDA margin provides a useful measure of operational performance. The Company defines Adjusted EBITDA margin as Adjusted EBITDA divided by revenue. Adjusted EBITDA margin should not be considered as an alternative to comparable GAAP measures of profitability and may not be comparable with the measure as defined by other companies.

Free cash flow provides a useful measure of operational performance, liquidity and financial health. The Company defines free cash flow as cash provided by (used in) operating, financing and investing activities, adjusted for the issuance and repayment of debt, debt issuance costs, the repurchase of common stock, and the proceeds from the sale or the use of funds from the purchase of business operations, including transaction costs. Free cash flow should not be considered as an alternative to net income (loss), operating income (loss), cash flow from operating activities, or the change in cash on the balance sheet and may not be comparable with free cash flow as defined by other companies. Although the Company feels that there is no comparable GAAP measure for free cash flow, the attached financial information reconciles free cash flow to the net increase (decrease) in cash and cash equivalents.

Net income excluding special items in total and per share provides a useful measure of operating performance. Net income excluding special items should not be considered as an alternative to comparable GAAP measures of profitability and may not be comparable with net income excluding special items as defined by other companies.

Net debt provides a useful measure of liquidity and financial health. The Company defines net debt as the sum of the face amount of short-term and long-term debt and unamortized premium and/or discount, offset by cash and cash equivalents.

About Cincinnati Bell Inc.

With headquarters in Cincinnati, Ohio, Cincinnati Bell (NYSE: CBB) provides integrated communications solutions - including local, long distance, data, Internet, entertainment and wireless services - that keep residential and business customers in Greater Cincinnati and Dayton connected with each other and with the world. In addition, Cincinnati Bell provides best-in-class data center colocation services to its

enterprise customers through its facilities with fully redundant power and cooling solutions that are currently located in the Midwest, Texas, London and Singapore. Complementing the colocation products, Cincinnati Bell also offers complex information technology solutions like managed services and technology staffing. For more information, visit www.cincinnatibell.com.

###

Cincinnati Bell Inc.
Consolidated Statements of Operations
(Unaudited)
(Dollars in millions, except per share amounts)
				Three Months Ended								Six Months Ended
				June 30,				Change				June 30,				Change
				2012		2011		$			%	2012		2011		$			%
	Revenue			$	368.2	$	367.5	$	0.7		0%	$	731.0	$	728.3	$	2.7		0%
	Costs and expenses
		Cost of services and products		171.7		169.0		2.7			2%	337.5		328.2		9.3			3%
		Selling, general and administrative		63.4		66.6		(3.2		)	(5)%	127.4		131.2		(3.8		)	(3)%
		Depreciation and amortization		53.7		48.8		4.9			10%	104.8		97.2		7.6			8%
		Restructuring charges		1.2		—		1.2			n/m	2.1		—		2.1			n/m
		Curtailment loss		—		4.2		(4.2		)	n/m	—		4.2		(4.2		)	n/m
		Acquisition costs		—		0.8		(0.8		)	n/m	—		1.9		(1.9		)	n/m
		Asset impairments		13.0		0.5		12.5			n/m	13.0		1.6		11.4			n/m
			Operating income	65.2		77.6		(12.4		)	(16)%	146.2		164.0		(17.8		)	(11)%
	Interest expense			53.7		53.4		0.3			1%	108.1		107.9		0.2			0%
	Other expense, net			—		—		—			n/m	1.5		—		1.5			n/m
	Income before income taxes			11.5		24.2		(12.7		)	(52)%	36.6		56.1		(19.5		)	(35)%
	Income tax expense			7.0		10.7		(3.7		)	(35)%	19.5		24.7		(5.2		)	(21)%
	Net income			4.5		13.5		(9.0		)	(67)%	17.1		31.4		(14.3		)	(46)%
	Preferred stock dividends			2.6		2.6		—			0%	5.2		5.2		—			0%
	Net income applicable to common shareowners			$	1.9	$	10.9	$	(9.0	)	(83)%	$	11.9	$	26.2	$	(14.3	)	(55)%
	Basic earnings per common share			$	0.01	$	0.06					$	0.06	$	0.13
	Diluted earnings per common share			$	0.01	$	0.05					$	0.06	$	0.13
	Weighted average common shares outstanding
		(in millions)
		- Basic		195.8		198.0						195.5		197.9
		- Diluted		201.7		201.0						201.7		200.7

Cincinnati Bell Inc.
Consolidated Statements of Operations
(Unaudited)
(Dollars in millions, except per share amounts)
				Three Months Ended
				June 30,		March 31,		Change
				2012		2012		$			%
	Revenue			$	368.2	$	362.8	$	5.4		1%
	Costs and expenses
		Cost of services and products		171.7		165.8		5.9			4%
		Selling, general and administrative		63.4		64.0		(0.6		)	(1)%
		Depreciation and amortization		53.7		51.1		2.6			5%
		Restructuring charges		1.2		0.9		0.3			33%
		Asset impairments		13.0		—		13.0			n/m
			Operating income	65.2		81.0		(15.8		)	(20)%
	Interest expense			53.7		54.4		(0.7		)	(1)%
	Other expense, net			—		1.5		(1.5		)	n/m
	Income before income taxes			11.5		25.1		(13.6		)	(54)%
	Income tax expense			7.0		12.5		(5.5		)	(44)%
	Net income			4.5		12.6		(8.1		)	(64)%
	Preferred stock dividends			2.6		2.6		—			0%
	Net income applicable to common shareowners			$	1.9	$	10.0	$	(8.1	)	(81)%
	Basic and diluted earnings per common share			$	0.01	$	0.05
	Weighted average common shares outstanding
		(in millions)
		- Basic		195.8		195.3
		- Diluted		201.7		201.6

Cincinnati Bell Inc.
Income Statements by Segment
(Unaudited)
(Dollars in millions)
			Three Months Ended									Six Months Ended
			June 30,					Change				June 30,				Change
			2012			2011		$			%	2012		2011		$			%
	Wireline
	Revenue
		Voice - local service	$	64.7		$	71.8	$	(7.1	)	(10)%	$	130.7	$	145.0	$	(14.3	)	(10)%
		Data	76.2			72.7		3.5			5%	152.2		143.8		8.4			6%
		Long distance and VoIP	29.1			27.5		1.6			6%	58.0		55.3		2.7			5%
		Entertainment	8.4			6.6		1.8			27%	16.1		12.4		3.7			30%
		Other	5.3			6.6		(1.3		)	(20)%	9.1		12.6		(3.5		)	(28)%
		Total revenue	183.7			185.2		(1.5		)	(1)%	366.1		369.1		(3.0		)	(1)%
	Operating costs and expenses
		Cost of services and products	71.2			67.6		3.6			5%	140.0		133.5		6.5			5%
		Selling, general and administrative	30.7			32.4		(1.7		)	(5)%	61.2		65.4		(4.2		)	(6)%
		Depreciation and amortization	26.4			25.1		1.3			5%	52.3		50.5		1.8			4%
		Other*	0.7			4.7		(4.0		)	(85)%	0.7		4.7		(4.0		)	(85)%
		Total operating costs and expenses	129.0			129.8		(0.8		)	(1)%	254.2		254.1		0.1			0%
	Operating income		$	54.7		$	55.4	$	(0.7	)	(1)%	$	111.9	$	115.0	$	(3.1	)	(3)%
	Wireless
	Revenue
		Service	$	57.6		$	64.6	$	(7.0	)	(11)%	$	116.7	$	129.7	$	(13.0	)	(10)%
		Equipment	4.2			5.1		(0.9		)	(18)%	8.8		11.4		(2.6		)	(23)%
		Total revenue	61.8			69.7		(7.9		)	(11)%	125.5		141.1		(15.6		)	(11)%
	Operating costs and expenses
		Cost of services and products	27.4			31.9		(4.5		)	(14)%	56.9		63.9		(7.0		)	(11)%
		Selling, general and administrative	10.6			14.2		(3.6		)	(25)%	21.3		27.5		(6.2		)	(23)%
		Depreciation and amortization	8.0			8.4		(0.4		)	(5)%	15.9		17.1		(1.2		)	(7)%
		Other*	—			—		—			n/m	0.5		1.1		(0.6		)	(55)%
		Total operating costs and expenses	46.0			54.5		(8.5		)	(16)%	94.6		109.6		(15.0		)	(14)%
	Operating income		$	15.8		$	15.2	$	0.6		4%	$	30.9	$	31.5	$	(0.6	)	(2)%
	Data Center Colocation
	Revenue		$	54.0		$	45.1	$	8.9		20%	$	106.6	$	88.5	$	18.1		20%
	Operating costs and expenses
		Cost of services	17.8			14.4		3.4			24%	35.1		28.1		7.0			25%
		Selling, general and administrative	7.6			4.9		2.7			55%	14.1		10.6		3.5			33%
		Depreciation and amortization	17.0			13.0		4.0			31%	32.6		25.0		7.6			30%
		Other*	13.5			—		13.5			n/m	13.5		—		13.5			n/m
		Total operating costs and expenses	55.9			32.3		23.6			73%	95.3		63.7		31.6			50%
	Operating (loss) income		$	(1.9	)	$	12.8	$	(14.7	)	n/m	$	11.3	$	24.8	$	(13.5	)	(54)%
	IT Services and Hardware
	Revenue
		Telecom and IT equipment distribution	$	49.8		$	53.3	$	(3.5	)	(7)%	$	95.5	$	101.8	$	(6.3	)	(6)%
		Managed and professional services	27.5			22.4		5.1			23%	55.0		44.2		10.8			24%
		Total revenue	77.3			75.7		1.6			2%	150.5		146.0		4.5			3%
	Operating costs and expenses
		Cost of services and products	63.3			62.6		0.7			1%	122.0		117.6		4.4			4%
		Selling, general and administrative	10.9			9.4		1.5			16%	21.2		19.3		1.9			10%
		Depreciation and amortization	2.3			2.2		0.1			5%	3.9		4.4		(0.5		)	(11)%
		Total operating costs and expenses	76.5			74.2		2.3			3%	147.1		141.3		5.8			4%
	Operating income		$	0.8		$	1.5	$	(0.7	)	(47)%	$	3.4	$	4.7	$	(1.3	)	(28)%
		*Other includes restructuring charges, curtailment loss and asset impairments.

Cincinnati Bell Inc.
Income Statements by Segment
(Unaudited)
(Dollars in millions)
			Three Months Ended
			June 30,			March 31,		Change
			2012			2012		$			%
	Wireline
	Revenue
		Voice - local service	$	64.7		$	66.0	$	(1.3	)	(2)%
		Data	76.2			76.0		0.2			0%
		Long distance and VoIP	29.1			28.9		0.2			1%
		Entertainment	8.4			7.7		0.7			9%
		Other	5.3			3.8		1.5			39%
		Total revenue	183.7			182.4		1.3			1%
	Operating costs and expenses
		Cost of services and products	71.2			68.8		2.4			3%
		Selling, general and administrative	30.7			30.5		0.2			1%
		Depreciation and amortization	26.4			25.9		0.5			2%
		Other*	0.7			—		0.7			n/m
		Total operating costs and expenses	129.0			125.2		3.8			3%
	Operating income		$	54.7		$	57.2	$	(2.5	)	(4)%
	Wireless
	Revenue
		Service	$	57.6		$	59.1	$	(1.5	)	(3)%
		Equipment	4.2			4.6		(0.4		)	(9)%
		Total revenue	61.8			63.7		(1.9		)	(3)%
	Operating costs and expenses
		Cost of services and products	27.4			29.5		(2.1		)	(7)%
		Selling, general and administrative	10.6			10.7		(0.1		)	(1)%
		Depreciation and amortization	8.0			7.9		0.1			1%
		Other*	—			0.5		(0.5		)	n/m
		Total operating costs and expenses	46.0			48.6		(2.6		)	(5)%
	Operating income		$	15.8		$	15.1	$	0.7		5%
	Data Center Colocation
	Revenue		$	54.0		$	52.6	$	1.4		3%
	Operating costs and expenses
		Cost of services	17.8			17.3		0.5			3%
		Selling, general and administrative	7.6			6.5		1.1			17%
		Depreciation and amortization	17.0			15.6		1.4			9%
		Other*	13.5			—		13.5			n/m
		Total operating costs and expenses	55.9			39.4		16.5			42%
	Operating (loss) income		$	(1.9	)	$	13.2	$	(15.1	)	n/m
	IT Services and Hardware
	Revenue
		Telecom and IT equipment distribution	$	49.8		$	45.7	$	4.1		9%
		Managed and professional services	27.5			27.5		—			0%
		Total revenue	77.3			73.2		4.1			6%
	Operating costs and expenses
		Cost of services and products	63.3			58.7		4.6			8%
		Selling, general and administrative	10.9			10.3		0.6			6%
		Depreciation and amortization	2.3			1.6		0.7			44%
		Total operating costs and expenses	76.5			70.6		5.9			8%
	Operating income		$	0.8		$	2.6	$	(1.8	)	(69)%
		*Other includes restructuring charges and asset impairments.

Cincinnati Bell Inc.
Segment Information
(Unaudited)
(Dollars in millions)
			Three Months Ended										Six Months Ended
			June 30,						Change				June 30,						Change
			2012			2011			$			%	2012			2011			$			%
	Revenue
		Wireline	$	183.7		$	185.2		$	(1.5	)	(1)%	$	366.1		$	369.1		$	(3.0	)	(1)%
		Wireless	61.8			69.7			(7.9		)	(11)%	125.5			141.1			(15.6		)	(11)%
		Data Center Colocation	54.0			45.1			8.9			20%	106.6			88.5			18.1			20%
		IT Services and Hardware	77.3			75.7			1.6			2%	150.5			146.0			4.5			3%
		Eliminations	(8.6		)	(8.2		)	(0.4		)	(5)%	(17.7		)	(16.4		)	(1.3		)	(8)%
		Total revenue	$	368.2		$	367.5		$	0.7		0%	$	731.0		$	728.3		$	2.7		0%
	Cost of Services and Products
		Wireline	$	71.2		$	67.6		$	3.6		5%	$	140.0		$	133.5		$	6.5		5%
		Wireless	27.4			31.9			(4.5		)	(14)%	56.9			63.9			(7.0		)	(11)%
		Data Center Colocation	17.8			14.4			3.4			24%	35.1			28.1			7.0			25%
		IT Services and Hardware	63.3			62.6			0.7			1%	122.0			117.6			4.4			4%
		Eliminations	(8.0		)	(7.5		)	(0.5		)	(7)%	(16.5		)	(14.9		)	(1.6		)	(11)%
		Total cost of services and products	$	171.7		$	169.0		$	2.7		2%	$	337.5		$	328.2		$	9.3		3%
	Selling, General and Administrative
		Wireline	$	30.7		$	32.4		$	(1.7	)	(5)%	$	61.2		$	65.4		$	(4.2	)	(6)%
		Wireless	10.6			14.2			(3.6		)	(25)%	21.3			27.5			(6.2		)	(23)%
		Data Center Colocation	7.6			4.9			2.7			55%	14.1			10.6			3.5			33%
		IT Services and Hardware	10.9			9.4			1.5			16%	21.2			19.3			1.9			10%
		Corporate and eliminations	3.6			5.7			(2.1		)	(37)%	9.6			8.4			1.2			14%
		Total selling, general and administrative	$	63.4		$	66.6		$	(3.2	)	(5)%	$	127.4		$	131.2		$	(3.8	)	(3)%
	Depreciation and Amortization
		Wireline	$	26.4		$	25.1		$	1.3		5%	$	52.3		$	50.5		$	1.8		4%
		Wireless	8.0			8.4			(0.4		)	(5)%	15.9			17.1			(1.2		)	(7)%
		Data Center Colocation	17.0			13.0			4.0			31%	32.6			25.0			7.6			30%
		IT Services and Hardware	2.3			2.2			0.1			5%	3.9			4.4			(0.5		)	(11)%
		Corporate	—			0.1			(0.1		)	n/m	0.1			0.2			(0.1		)	(50)%
		Total depreciation and amortization	$	53.7		$	48.8		$	4.9		10%	$	104.8		$	97.2		$	7.6		8%
	Other*
		Wireline	$	0.7		$	4.7		$	(4.0	)	(85)%	$	0.7		$	4.7		$	(4.0	)	(85)%
		Wireless	—			—			—			n/m	0.5			1.1			(0.6		)	(55)%
		Data Center Colocation	13.5			—			13.5			n/m	13.5			—			13.5			n/m
		IT Services and Hardware	—			—			—			n/m	—			—			—			n/m
		Corporate	—			0.8			(0.8		)	n/m	0.4			1.9			(1.5		)	(79)%
		Total other	$	14.2		$	5.5		$	8.7		158%	$	15.1		$	7.7		$	7.4		96%
	Operating Income (Loss)
		Wireline	$	54.7		$	55.4		$	(0.7	)	(1)%	$	111.9		$	115.0		$	(3.1	)	(3)%
		Wireless	15.8			15.2			0.6			4%	30.9			31.5			(0.6		)	(2)%
		Data Center Colocation	(1.9		)	12.8			(14.7		)	n/m	11.3			24.8			(13.5		)	(54)%
		IT Services and Hardware	0.8			1.5			(0.7		)	(47)%	3.4			4.7			(1.3		)	(28)%
		Corporate	(4.2		)	(7.3		)	3.1			42%	(11.3		)	(12.0		)	0.7			6%
		Total operating income	$	65.2		$	77.6		$	(12.4	)	(16)%	$	146.2		$	164.0		$	(17.8	)	(11)%
		*Other includes restructuring charges, curtailment loss, acquisition costs and asset impairments.

Cincinnati Bell Inc.
Segment Information
(Unaudited)
(Dollars in millions)
			Three Months Ended
			June 30,			March 31,			Change
			2012			2012			$			%
	Revenue
		Wireline	$	183.7		$	182.4		$	1.3		1%
		Wireless	61.8			63.7			(1.9		)	(3)%
		Data Center Colocation	54.0			52.6			1.4			3%
		IT Services and Hardware	77.3			73.2			4.1			6%
		Eliminations	(8.6		)	(9.1		)	0.5			5%
		Total revenue	$	368.2		$	362.8		$	5.4		1%
	Cost of Services and Products
		Wireline	$	71.2		$	68.8		$	2.4		3%
		Wireless	27.4			29.5			(2.1		)	(7)%
		Data Center Colocation	17.8			17.3			0.5			3%
		IT Services and Hardware	63.3			58.7			4.6			8%
		Eliminations	(8.0		)	(8.5		)	0.5			6%
		Total cost of services and products	$	171.7		$	165.8		$	5.9		4%
	Selling, General and Administrative
		Wireline	$	30.7		$	30.5		$	0.2		1%
		Wireless	10.6			10.7			(0.1		)	(1)%
		Data Center Colocation	7.6			6.5			1.1			17%
		IT Services and Hardware	10.9			10.3			0.6			6%
		Corporate and eliminations	3.6			6.0			(2.4		)	(40)%
		Total selling, general and administrative	$	63.4		$	64.0		$	(0.6	)	(1)%
	Depreciation and Amortization
		Wireline	$	26.4		$	25.9		$	0.5		2%
		Wireless	8.0			7.9			0.1			1%
		Data Center Colocation	17.0			15.6			1.4			9%
		IT Services and Hardware	2.3			1.6			0.7			44%
		Corporate	—			0.1			(0.1		)	n/m
		Total depreciation and amortization	$	53.7		$	51.1		$	2.6		5%
	Other*
		Wireline	$	0.7		$	—		$	0.7		n/m
		Wireless	—			0.5			(0.5		)	n/m
		Data Center Colocation	13.5			—			13.5			n/m
		IT Services and Hardware	—			—			—			n/m
		Corporate	—			0.4			(0.4		)	n/m
		Total other	$	14.2		$	0.9		$	13.3		n/m
	Operating Income (Loss)
		Wireline	$	54.7		$	57.2		$	(2.5	)	(4)%
		Wireless	15.8			15.1			0.7			5%
		Data Center Colocation	(1.9		)	13.2			(15.1		)	n/m
		IT Services and Hardware	0.8			2.6			(1.8		)	(69)%
		Corporate	(4.2		)	(7.1		)	2.9			41%
		Total operating income	$	65.2		$	81.0		$	(15.8	)	(20)%
		*Other includes restructuring charges and asset impairments.

Cincinnati Bell Inc.
Segment Metric Information
(Unaudited)
(In thousands)
			June 30,		March 31,		June 30,
			2012		2012		2011
	Local access lines		598.5		608.6		650.6
	Long distance lines		433.6		439.2		467.8
	High-speed internet subscribers
		DSL subscribers	210.5		214.4		224.6
		Fioptics subscribers	47.1		42.8		33.3
			257.6		257.2		257.9
	Fioptics entertainment subscribers		46.4		42.7		33.6
	Wireless
		Postpaid wireless subscribers	284.9		297.7		331.4
		Prepaid wireless subscribers	145.2		148.7		155.9
			430.1		446.4		487.3
	Data Center Colocation
		Data center capacity (in square feet)	801,000		806,000		669,000
		Utilization rate*	85	%	85	%	90	%
	*	Data center utilization is calculated by dividing data center square footage that is committed contractually to customers, if built, by total data center square footage. Some data center square footage that is committed contractually may not yet be billed to the customer.

Cincinnati Bell Inc.
Local Access Line Detail
(Unaudited)
(In thousands)
		2010				2011				2012
		1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q
	Local Access Lines
	In-Territory:
	Primary Residential	354.1	345.5	336.8	328.9	321.8	313.8	304.8	296.7	288.9	281.7
	Secondary Residential	21.8	20.8	19.3	19.1	18.3	16.3	15.6	14.9	14.2	13.6
	Business/Other	261.9	258.7	256.2	252.5	250.7	248.7	244.4	240.8	238.5	237.5
	Total In-Territory	637.8	625.0	612.3	600.5	590.8	578.8	564.8	552.4	541.6	532.8
	Out-of-Territory:
	Primary Residential	32.9	32.5	32.1	31.2	30.4	29.3	27.8	26.7	25.2	24.3
	Secondary Residential	1.1	1.1	1.0	1.0	0.9	0.9	0.9	0.8	0.8	0.8
	Business/Other	39.9	40.4	41.5	41.4	41.5	41.6	41.8	41.4	41.0	40.6
	Total Out-of-Territory	73.9	74.0	74.6	73.6	72.8	71.8	70.5	68.9	67.0	65.7
	Total Access Lines	711.7	699.0	686.9	674.1	663.6	650.6	635.3	621.3	608.6	598.5

Cincinnati Bell Inc.
Net Debt and Common Shares Outstanding
(Unaudited)
(Dollars and shares in millions)
		June 30,			March 31,			December 31,
		2012			2012			2011
Receivables Facility		$	19.0		$	—		$	—
7% Senior Notes due 2015		250.0			250.2			250.4
8 1/4% Senior Notes due 2017		500.0			500.0			500.0
8 3/4% Senior Subordinated Notes due 2018		625.0			625.0			625.0
8 3/8% Senior Notes due 2020		775.0			775.0			775.0
7 1/4% Senior Notes due 2023		40.0			40.0			40.0
Various Cincinnati Bell Telephone notes		207.5			207.5			207.5
Capital leases and other debt		143.6			141.8			144.4
Net unamortized discount		(7.9		)	(8.3		)	(8.7		)
	Total debt	2,552.2			2,531.2			2,533.6
Less: Interest rate swap adjustment		(2.4		)	(2.7		)	(2.9		)
Less: Cash and cash equivalents		(4.1		)	(6.9		)	(73.7		)
	Net debt (as defined by the company)	$	2,545.7		$	2,521.6		$	2,457.0
Credit facility availability		$	210.0		$	210.0		$	210.0
Common shares outstanding		197.4			197.2			195.7

Cincinnati Bell Inc.
Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP)
(Unaudited)
(Dollars in millions)
			Three Months Ended June 30, 2012
			Wireline			Wireless			Data Center Colocation			IT Services & Hardware			Corporate			Total Company
	Net Income (GAAP)																	$	4.5
	Add:
		Income tax expense																7.0
		Interest expense																53.7
	Operating Income (Loss) (GAAP)		$	54.7		$	15.8		$	(1.9	)	$	0.8		$	(4.2	)	$	65.2
	Add:
		Depreciation and amortization	26.4			8.0			17.0			2.3			—			53.7
		Restructuring charges	0.7			—			0.5			—			—			1.2
		Asset impairments	—			—			13.0			—			—			13.0
		Legal claim costs	—			—			0.2			—			—			0.2
		Pension and other retirement plan expenses	6.0			—			—			—			0.3			6.3
	Adjusted EBITDA (Non-GAAP)		$	87.8		$	23.8		$	28.8		$	3.1		$	(3.9	)	$	139.6
	Adjusted EBITDA Margin		48		%	39		%	53		%	4		%	—			38		%
			Three Months Ended March 31, 2012
			Wireline			Wireless			Data Center Colocation			IT Services & Hardware			Corporate			Total Company
	Net Income (GAAP)																	$	12.6
	Add:
		Income tax expense																12.5
		Interest expense																54.4
		Other expense, net																1.5
	Operating Income (GAAP)		$	57.2		$	15.1		$	13.2		$	2.6		$	(7.1	)	$	81.0
	Add:
		Depreciation and amortization	25.9			7.9			15.6			1.6			0.1			51.1
		Restructuring charges	—			0.5			—			—			0.4			0.9
		Pension and other retirement plan expenses	5.4			—			—			—			0.4			5.8
	Adjusted EBITDA (Non-GAAP)		$	88.5		$	23.5		$	28.8		$	4.2		$	(6.2	)	$	138.8
	Adjusted EBITDA Margin		49		%	37		%	55		%	6		%	—			38		%
	Sequential dollar change in Adjusted EBITDA		$	(0.7	)	$	0.3		$	—		$	(1.1	)	$	2.3		$	0.8
	Sequential percentage change in Adjusted EBITDA		(1		)%	1		%	0		%	(26		)%	37		%	1		%
			Three Months Ended June 30, 2011
			Wireline			Wireless			Data Center Colocation			IT Services & Hardware			Corporate			Total Company
	Net Income (GAAP)																	$	13.5
	Add:
		Income tax expense																10.7
		Interest expense																53.4
	Operating Income (GAAP)		$	55.4		$	15.2		$	12.8		$	1.5		$	(7.3	)	$	77.6
	Add:
		Depreciation and amortization	25.1			8.4			13.0			2.2			0.1			48.8
		Acquisition costs	—			—			—			—			0.8			0.8
		Asset impairments	0.5			—			—			—			—			0.5
		Pension and other retirement plan expenses	9.1			—			—			—			0.4			9.5
	Adjusted EBITDA (Non-GAAP)		$	90.1		$	23.6		$	25.8		$	3.7		$	(6.0	)	$	137.2
	Adjusted EBITDA Margin		49		%	34		%	57		%	5		%	—			37		%
	Year-over-year dollar change in Adjusted EBITDA		$	(2.3	)	$	0.2		$	3.0		$	(0.6	)	$	2.1		$	2.4
	Year-over-year percentage change in Adjusted EBITDA		(3		)%	1		%	12		%	(16		)%	35		%	2		%

Cincinnati Bell Inc.
Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP)
(Unaudited)
(Dollars in millions)
			Six Months Ended June 30, 2012
			Wireline			Wireless			Data Center Colocation			IT Services & Hardware			Corporate			Total Company
	Net Income (GAAP)																	$	17.1
	Add:
		Income tax expense																19.5
		Interest expense																108.1
		Other expense, net																1.5
	Operating Income (GAAP)		$	111.9		$	30.9		$	11.3		$	3.4		$	(11.3	)	$	146.2
	Add:
		Depreciation and amortization	52.3			15.9			32.6			3.9			0.1			104.8
		Restructuring charges	0.7			0.5			0.5			—			0.4			2.1
		Asset impairments	—			—			13.0			—			—			13.0
		Legal claim costs	—			—			0.2			—			—			0.2
		Pension and other retirement plan expenses	11.4			—			—			—			0.7			12.1
	Adjusted EBITDA (Non-GAAP)		$	176.3		$	47.3		$	57.6		$	7.3		$	(10.1	)	$	278.4
	Adjusted EBITDA Margin		48		%	38		%	54		%	5		%	—			38		%
			Six Months Ended June 30, 2011
			Wireline			Wireless			Data Center Colocation			IT Services & Hardware			Corporate			Total Company
	Net Income (GAAP)																	$	31.4
	Add:
		Income tax expense																24.7
		Interest expense																107.9
	Operating Income (GAAP)		$	115.0		$	31.5		$	24.8		$	4.7		$	(12.0	)	$	164.0
	Add:
		Depreciation and amortization	50.5			17.1			25.0			4.4			0.2			97.2
		Acquisition costs	—			—			—			—			1.9			1.9
		Asset impairments	0.5			1.1			—			—			—			1.6
		Pension and other retirement plan expenses	14.1			—			—			—			0.8			14.9
	Adjusted EBITDA (Non-GAAP)		$	180.1		$	49.7		$	49.8		$	9.1		$	(9.1	)	$	279.6
	Adjusted EBITDA Margin		49		%	35		%	56		%	6		%	—			38		%
	Year-over-year dollar change in Adjusted EBITDA		$	(3.8	)	$	(2.4	)	$	7.8		$	(1.8	)	$	(1.0	)	$	(1.2	)
	Year-over-year percentage change in Adjusted EBITDA		(2		)%	(5		)%	16		%	(20		)%	(11		)%	0		%

Cincinnati Bell Inc.
Consolidated Statements of Cash Flows
(Unaudited)
(Dollars in millions)
			Three Months Ended						Six Months Ended
			June 30,						June 30,
			2012			2011			2012			2011
	Cash provided by operating activities		$	68.3		$	52.9		$	91.9		$	117.9
		Capital expenditures	(82.8		)	(40.1		)	(167.4		)	(92.5		)
		Other, net	—			(0.3		)	—			(0.2		)
	Cash used in investing activities		(82.8		)	(40.4		)	(167.4		)	(92.7		)
		Increase in corporate credit and    receivables facilities, net	19.0			0.4			19.0			0.4
		Repayment of debt	(4.0		)	(3.2		)	(8.0		)	(6.2		)
		Debt issuance costs	—			(0.8		)	—			(0.8		)
		Dividends paid on preferred stock	(2.6		)	(2.6		)	(5.2		)	(5.2		)
		Common stock repurchase	—			—			(0.3		)	—
		Other, net	(0.7		)	(0.2		)	0.4			(0.6		)
	Cash provided by (used in) financing activities		11.7			(6.4		)	5.9			(12.4		)
	Net (decrease) increase in cash and cash equivalents		(2.8		)	6.1			(69.6		)	12.8
	Cash and cash equivalents at beginning of period		6.9			84.0			73.7			77.3
	Cash and cash equivalents at end of period		$	4.1		$	90.1		$	4.1		$	90.1
	Reconciliation of GAAP Cash Flow to
		Free Cash Flow (as defined by the company)
	Net (decrease) increase in cash and cash equivalents		$	(2.8	)	$	6.1		$	(69.6	)	$	12.8
	Less adjustments:
		Increase in corporate credit and    receivables facilities, net	(19.0		)	(0.4		)	(19.0		)	(0.4		)
		Repayment of debt	4.0			3.2			8.0			6.2
		Debt issuance costs	—			0.8			—			0.8
		Acquisition costs	—			0.8			—			1.9
		Common stock repurchase	—			—			0.3			—
		Free cash flow (as defined by the company)	$	(17.8	)	$	10.5		$	(80.3	)	$	21.3
	Income tax payments (refunds)		$	0.1		$	—		$	(0.7	)	$	(1.3	)

Cincinnati Bell Inc.
Free Cash Flow (as defined by the company)
(Unaudited)
(Dollars in millions)
	Free Cash Flow for the three months ended June 30, 2011	$	10.5
	Increase in Adjusted EBITDA	2.4
	Increase in capital expenditures	(42.7		)
	Increase in pension and postretirement payments and contributions	(2.2		)
	Change in working capital and other	14.2
	Free Cash Flow for the three months ended June 30, 2012	$	(17.8	)
	Free Cash Flow for the six months ended June 30, 2011	$	21.3
	Decrease in Adjusted EBITDA	(1.2		)
	Increase in capital expenditures	(74.9		)
	Decrease in pension and postretirement payments and contributions	0.7
	Change in working capital and other	(26.2		)
	Free Cash Flow for the six months ended June 30, 2012	$	(80.3	)

Cincinnati Bell Inc.
Capital Expenditures
(Unaudited)
(Dollars in millions)
	Three Months Ended
	Jun. 30, 2012		Mar. 31, 2012		Dec. 31, 2011		Sep. 30, 2011		Jun. 30, 2011
Wireline	$	26.4	$	23.3	$	37.4	$	27.1	$	22.6
Wireless	1.9		6.3		7.0		4.9		0.9
Data Center Colocation	52.0		52.8		41.3		41.0		14.6
IT Services and Hardware	2.5		2.2		2.8		1.5		2.0
Total capital expenditures	$	82.8	$	84.6	$	88.5	$	74.5	$	40.1

Cincinnati Bell Inc.
Normalized Statements of Operations (Non-GAAP) - Reconciliation to Reported Results
(Unaudited)
(Dollars in millions, except per share amounts)
										Three
				Three						Months Ended
				Months Ended						June 30, 2012
				June 30, 2012						Before Special Items
				(GAAP)		Special Items				(Non-GAAP)
	Revenue			$	368.2	$	—			$	368.2
	Costs and expenses
		Cost of services and products		171.7		—				171.7
		Selling, general and administrative		63.4		(0.2		)	[A]	63.2
		Depreciation and amortization		53.7		—				53.7
		Restructuring charges		1.2		(1.2		)	[B]	—
		Asset impairments		13.0		(13.0		)	[C]	—
			Operating income	65.2		14.4				79.6
	Interest expense			53.7		—				53.7
	Income before income taxes			11.5		14.4				25.9
	Income tax expense			7.0		5.8				12.8
	Net income			4.5		8.6				13.1
	Preferred stock dividends			2.6		—				2.6
	Net income applicable to common shareowners			$	1.9	$	8.6			$	10.5
	Weighted average diluted common shares			201.7		201.7				201.7
	Diluted earnings per common share			$	0.01	$	0.04			$	0.05
	Normalized results have been adjusted for the following (pretax adjustments are tax effected at 40%):
A	Costs associated with the investigation and resolution of special legal matters.
B	Restructuring charges consist of severance and lease abandonments.
C	Impairment of intangibles and property recorded to reduce the carrying values of these assets to reflect their estimated fair values.

Cincinnati Bell Inc.
Normalized Statements of Operations (Non-GAAP) - Reconciliation to Reported Results
(Unaudited)
(Dollars in millions, except per share amounts)
										Three
				Three						Months Ended
				Months Ended						June 30, 2011
				June 30, 2011						Before Special Items
				(GAAP)		Special Items				(Non-GAAP)
	Revenue			$	367.5	$	—			$	367.5
	Costs and expenses
		Cost of services and products		169.0		—				169.0
		Selling, general and administrative		66.6		—				66.6
		Depreciation and amortization		48.8		—				48.8
		Curtailment loss		4.2		(4.2		)	[A]	—
		Acquisition costs		0.8		(0.8		)	[B]	—
		Asset impairments		0.5		(0.5		)	[C]	—
			Operating income	77.6		5.5				83.1
	Interest expense			53.4		—				53.4
	Income before income taxes			24.2		5.5				29.7
	Income tax expense			10.7		2.2				12.9
	Net income			13.5		3.3				16.8
	Preferred stock dividends			2.6		—				2.6
	Net income applicable to common shareowners			$	10.9	$	3.3			$	14.2
	Weighted average diluted common shares			201.0		201.0				201.0
	Diluted earnings per common share			$	0.05	$	0.02			$	0.07
	Normalized results have been adjusted for the following (pretax adjustments are tax effected at 40%):
A	Curtailment of bargained pension plan as a result of pension service credits being frozen for the majority of the plan participants.
B	Acquisition costs consist of legal and professional fees incurred in due diligence.
C	Impairment recorded to reduce carrying value of property to reflect its estimated fair value.

Cincinnati Bell Inc.
Normalized Statements of Operations (Non-GAAP) - Reconciliation to Reported Results
(Unaudited)
(Dollars in millions, except per share amounts)
										Six
				Six						Months Ended
				Months Ended						June 30, 2012
				June 30, 2012						Before Special Items
				(GAAP)		Special Items				(Non-GAAP)
	Revenue			$	731.0	$	—			$	731.0
	Costs and expenses
		Cost of services and products		337.5		—				337.5
		Selling, general and administrative		127.4		(0.2		)	[A]	127.2
		Depreciation and amortization		104.8		—				104.8
		Restructuring charges		2.1		(2.1		)	[B]	—
		Asset impairments		13.0		(13.0		)	[C]	—
			Operating income	146.2		15.3				161.5
	Interest expense			108.1		—				108.1
	Other expense, net			1.5		(1.4		)	[D]	0.1
	Income before income taxes			36.6		16.7				53.3
	Income tax expense			19.5		6.7				26.2
	Net income			17.1		10.0				27.1
	Preferred stock dividends			5.2		—				5.2
	Net income applicable to common shareowners			$	11.9	$	10.0			$	21.9
	Weighted average diluted common shares			201.7		201.7				201.7
	Diluted earnings per common share			$	0.06	$	0.05			$	0.11
	Normalized results have been adjusted for the following (pretax adjustments are tax effected at 40%):
A	Costs associated with the investigation and resolution of special legal matters.
B	Restructuring charges consist of severance and lease abandonments.
C	Impairment of intangibles and property recorded to reduce the carrying values of these assets to reflect their estimated fair values.
D	Loss on termination of financing obligation.

Cincinnati Bell Inc.
Normalized Statements of Operations (Non-GAAP) - Reconciliation to Reported Results
(Unaudited)
(Dollars in millions, except per share amounts)
										Six
				Six						Months Ended
				Months Ended						June 30, 2011
				June 30, 2011						Before Special Items
				(GAAP)		Special Items				(Non-GAAP)
	Revenue			$	728.3	$	—			$	728.3
	Costs and expenses
		Cost of services and products		328.2		—				328.2
		Selling, general and administrative		131.2		—				131.2
		Depreciation and amortization		97.2		—				97.2
		Curtailment loss		4.2		(4.2		)	[A]	—
		Acquisition costs		1.9		(1.9		)	[B]	—
		Asset impairments		1.6		(1.6		)	[C]	—
			Operating income	164.0		7.7				171.7
	Interest expense			107.9		—				107.9
	Income before income taxes			56.1		7.7				63.8
	Income tax expense			24.7		3.1				27.8
	Net income			31.4		4.6				36.0
	Preferred stock dividends			5.2		—				5.2
	Net income applicable to common shareowners			$	26.2	$	4.6			$	30.8
	Weighted average diluted common shares			200.7		200.7				200.7
	Diluted earnings per common share			$	0.13	$	0.02			$	0.15
	Normalized results have been adjusted for the following (pretax adjustments are tax effected at 40%):
A	Curtailment of bargained pension plan as a result of pension service credits being frozen for the majority of the plan participants.
B	Acquisition costs consist of legal and professional fees incurred in due diligence.
C	Impairment recorded to reduce carrying value of property to reflect its estimated fair value.

Cincinnati Bell Inc.
Reconciliation of Operating Income (GAAP) Guidance to Adjusted EBITDA (Non-GAAP) Guidance
(Unaudited)
(Dollars in millions)
	2012 Operating Income (GAAP) Guidance	$	280
	Add:
	Depreciation and amortization	210
	Other	3
	Pension and other retirement plan expenses	24
	Asset impairments	13
	2012 Adjusted EBITDA (Non-GAAP) Guidance	$	530	*
	* Plus or minus 2 percent.

CONTACT:

Cincinnati Bell Inc.

Investor / Media contact:

John Caulfield, 513-397-0487

John.Caulfield@cinbell.com

EX-99.2

Cincinnati Bell Second Quarter 2012 Results August 8, 2012

2 2 Today’s Agenda Performance Highlights Jack Cassidy, President & Chief Executive Officer Review of Cincinnati Bell Communications Ted Torbeck, President, Cincinnati Bell Communications Review of CyrusOne Gary Wojtaszek, President, CyrusOne Financial Overview Kurt Freyberger, Chief Financial Officer Question & Answer Cincinnati Bell Management Team

3 3 Safe Harbor This presentation and the documents incorporated by reference herein contain forward- looking statements regarding future events and our future results that are subject to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, are statements that could be deemed forward-looking statements. These statements are based on current expectations, estimates, forecasts, and projections about the industries in which we operate and the beliefs and assumptions of our management. Words such as “expects,” “anticipates,” “predicts,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “continues,” “endeavors,” “strives,” “may,” variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, any statements that refer to projections of our future financial performance, our anticipated growth and trends in our businesses, and other characterizations of future events or circumstances are forward- looking statements. Readers are cautioned these forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties, which could cause our actual results to differ materially and adversely from those reflected in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in this release and those discussed in other documents we file with the Securities and Exchange Commission (SEC). More information on potential risks and uncertainties is available in our recent filings with the SEC, including Cincinnati Bell’s Form 10-K report, Form 10-Q reports and Form 8-K reports. Actual results may differ materially and adversely from those expressed in any forward-looking statements. We undertake no obligation to revise or update any forward-looking statements for any reason.

4 4 Non GAAP Financial Measures This presentation contains information about adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA), Adjusted EBITDA margin, free cash flow and diluted earnings per share before special items. These are non-GAAP financial measures used by Cincinnati Bell management when evaluating results of operations and cash flow. Management believes these measures also provide users of the financial statements with additional and useful comparisons of current results of operations and cash flows with past and future periods. Non-GAAP financial measures should not be construed as being more important than comparable GAAP measures. Detailed reconciliations of Adjusted EBITDA, free cash flow and diluted earnings per share before special items (including the Company’s definition of these terms) to comparable GAAP financial measures can be found in the earnings release on our website at www.cincinnatibell.com within the Investor Relations section.

Jack Cassidy President and CEO

6 6 2012 2nd Quarter Highlights Executing on our plan Net revenue was $368 million in the quarter, 1% improved over Q1 2012 Adjusted EBITDA improves to $140 million, up from $137 million in Q2 2011 and $139 million in Q1 2012 CyrusOne’s growth continues as revenue in the quarter increases 20% year-over-year Wireline and Wireless continue to deliver solid performances, as Adjusted EBITDA margins maintained at 48% and 39%, respectively • Fioptics passes 22,000 units and adds 4,000 new customers in the quarter, contributing to 43% year-over-year Fioptics revenue growth • Wireline loses fewest number of access lines in a quarter since Q2 2006 • Sold 19,000 sq feet of new data center space in the quarter, maintaining utilization of 85% • Wireless Adjusted EBITDA margin tops high margin of 37% from Q1 2012

7 7 Q2 2012 Year over Year Change in Revenue CyrusOne revenue growth offsets impact of a declining subscriber base $9 million or 20% increase in Data Center Colocation • Utilized data center space up 19% year- over-year, excluding decommissioned space $2 million or 2% increase in IT Services and Hardware ($2 million) decrease in Wireline • Revenue growth from Fioptics and enterprise offerings continues to offset access line losses ($8 million) decrease in Wireless • Revenue decreases due to a declining subscriber base ($’s in millions) $368 $368 ($2) ($8) $2 $9 ($1) Q2 2011 Wireline Wireless IT Svcs & HW DC Colocation Eliminations Q2 2012

8 8 Q2 2012 Year over Year Change in Adjusted EBITDA Adjusted EBITDA reaches $140M – second time since 2003 $3 million increase in Data Center Colocation • Impact of higher revenue was partially offset by increased SG&A costs required to support growth Wireless Adjusted EBITDA holds strong despite lower subscriber base • Continued focus on profitability and cash flows results in lower operating costs ($2 million) decrease in Wireline • Impact of declining high-margin voice revenue continues to be partially offset by growth products and cost management initiatives $2 million decrease in Corporate expenses • Largely relates to favorable mark-to-market adjustments on comp plans from fluctuations in stock price ($’s in millions) $137 $140 ($2) $0 $0 $3 $2 Q2 2011 Wireline Wireless IT Svcs and HW DC Colocation Corporate Q2 2012

Ted Torbeck President, Cincinnati Bell Communications

10 10 Wireline Performance ($’s in millions) Revenue Adj. EBITDA Adj. EBITDA Margin Wireline Revenue and Adjusted EBITDA Revenue of $184 million reflects second consecutive quarter of revenue growth • Revenue is flat to Q2 2011 when adjusting for the revenue from the home security business sold in Q3 2011 • Fioptics revenue was $16 million, up 43% over Q2 2011, helping mitigate impact of access line losses • Revenue from enterprise fiber-based and VoIP products increased $3 million year- over-year Adjusted EBITDA of $88 million in the quarter • Voice revenue down $7 million driven by access line losses • Fioptics growth contributed EBITDA increase of $2 million • Home security business contributed $1 million to EBITDA in Q2 2011 • Cost-out initiatives continue to be vital in partially offsetting growth and other costs $185 $183 $180 $182 $184 $90 $87 $88 $89 $88 49% 48% 49% 49% 48% Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 $90 $88 ($7) $7 $4 ($6) Q2 2011 Voice Revenue Revenue from Entertainment, Data & VoIP Cost-out Initiatives Growth Costs and Other Q2 2012 Wireline Adjusted EBITDA Year over Year Changes

11 Q2 2012 Fioptics subscribers • 169K units now passed; added 22K in Q2 • 47K entertainment subs; added 4K in Q2 • 47K internet subs; added 4K in Q2 • 35K voice subs; added 3K in Q2 Churn for entertainment subscribers was 2.6% in the quarter, consistent with Q2 2011 • Churn rate expected to improve as Fioptics footprint is expanded to cover more single family units Fioptics consumer monthly ARPU was $130, up from $122 in Q2 2011 11 Fioptics continues to be popular in our footprint • 28% penetration of total units passed 34 38 40 43 47 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Total Entertainment Subscribers (in thousands) Fioptics Activity

12 225 222 218 214 210 33 37 39 43 47 258 259 257 257 257 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Fioptics (Including Cable) DSL (4) (3) (4) (4) (4) 3 4 2 4 4 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 DSL Net Adds Fioptics Net Adds High-Speed Internet Net Adds 12 High-Speed Internet Subscriber Activity Added 4K Fioptics high-speed internet subscribers in Q2 2012, fully offsetting DSL losses for the second straight quarter 41% growth in Fioptics high-speed internet subs since Q2 2011 Churn of high-speed internet subscribers was 1.8% in the quarter, the lowest since Q1 2011 (In thousands) (1) 1 (2) - High-Speed Internet Customers (DSL & Fioptics) -

13 Access Line Loss – Consumer & Business Year over year total access line loss improves to 8.0% from 8.3% in Q1 2012 • Fewest number of access lines lost since Q2 2006 • In-territory access line loss also improved to 7.9% from 8.3% in Q1 2012 • Reduced activities in low-margin Dayton CLEC markets continue to have an impact on the total loss rate Access line churn of 1.3% in the quarter is slightly better than 1.4% in Q2 2011 VoIP access line equivalents increased 7% year over year 13 (In thousands) (11) (11) (10) (10) (9) (2) (4) (4) (3) (1) (13) (15) (14) (13) (10) Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Access Line Loss Consumer Access Lines Business Access Lines

14 14 Wireless Performance Revenue Adj. EBITDA Adj. EBITDA Margin Wireless Revenue & Adjusted EBITDA Adjusted EBITDA margin of 39% in the quarter is highest since 2004 • Continued focus on maximizing cash flows and profitability • Postpaid ARPU was $51.55 in the quarter, up from $50.74 in Q2 2011 • Prepaid ARPU of $28.70, up from $27.71 in Q2 2011 Growth of smartphone subscribers continues to drive increase in data ARPU • Postpaid data ARPU grew 16% year-over- year to $17.05, offsetting decline in voice ARPU • Total smartphone subscriber base has grown by 13% year over year to 127K • Postpaid smartphone penetration now at 36% of total postpaid subscriber base, up from 30% in Q2 2011 Postpaid churn in the quarter of 2.2%, similar to both Q2 2011 and Q1 2012 ($’s in millions) $70 $68 $68 $64 $62 $24 $20 $19 $24 $24 34% 29% 28% 37% 39% Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 331 322 311 298 285 156 150 148 148 145 487 472 459 446 430 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Prepaid Postpaid Wireless Customers (In thousands)

15 15 ($’s in millions) IT Services and Hardware Revenue in the quarter increased 2% from prior year • Revenue from Managed and Professional Services increased $5 million, or 23%, from 2011 • Telecom & IT Equipment sales were 7% lower compared to same period in 2011 Adjusted EBITDA of $3 million decreased by $1 million compared to Q2 2011 $76 $79 $76 $73 $77 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Revenue $4 $6 $5 $4 $3 5% 8% 6% 6% 4% Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Adjusted EBITDA Adj. EBITDA Adj. EBITDA Margin

Gary Wojtaszek President, CyrusOne

17 17 Revenue increased by 20% year- over-year • Excluding decommissioned space, total utilized space increased 19% compared to Q2 2011 Adjusted EBITDA increased by 12% year-over-year • Additional SG&A costs incurred to support growing business operations • Resulted in Adjusted EBITDA margin of 53% Data Center Colocation Performance ($ in millions) Data Center Colocation Revenue and Adjusted EBITDA Revenue Adj. EBITDA Adj. EBITDA Margin $45 $47 $49 $53 $54 $26 $25 $27 $29 $29 57% 53% 56% 55% 53% Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012

18 360 395 433 456 487 493 2007 2008 2009 2010 2011 Q2 2012 $1,026 $2,538 $3,274 $3,728 $3,97 2007 2008 2009 2010 2011 18 Fortune 1000 customer count increases to 108 • Includes private and foreign entities that are of an equivalent size to the Fortune 1000 • Approximately 70% of revenue is generated from Fortune 1000 customers Revenue growth continues to be driven by existing customer base 5-Year Growth - Total Customer Base Customer Base Continues to Grow 108 customers in the Fortune 1000 5-Year Growth - Monthly Recurring Billings from Top 25 Customers ($ in thousands)

19 19 Well-diversified and reliable revenue base • No single customer accounts for more than 8% of total revenue • 60% of total revenue is generated from investment grade companies Energy industry continues to be significant to CyrusOne’s revenue • 36% of revenue is generated from customers in the energy industry • Counts 5 of the 6 ‘Supermajor’ oil & gas companies as customers Revenue Mix by Industry type(1) CyrusOne’s Revenue Mix Well-diversified customer portfolio IT Financial Services Telecom Health- care Other (1) As of March 31, 2012

20 600 630 673 688 683 69 106 90 118 118 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Data Center Utilization Update Data Center Capacity At Quarter end Utilization was maintained at 85%, similar to Q1 2012 • CyrusOne added 19k sq ft and sold 19k sq ft during the quarter Decommissioned 24k sq ft of low- value legacy space in Cincinnati during the quarter • Contract was initiated in mid-1980s with a large customer (sq ft in thousands) Utilized Available 86% 88% 90% 20 85% 85%

21 Data Center Capacity and Utilization by Market 21 In July 2012, Commissioned new facilities in San Antonio (40k sq ft) and Dallas (45k sq ft) • 10% of these facilities are pre-leased Expect to add approx. 55k sq ft of new space during the remainder of 2012 • 40k sq ft in Phoenix and 15k sq ft in Houston during Q4 2012 Market # of Facilities Capacity (Sq Ft) % Utilized Cincinnati 7 414,000 91% Houston 3 174,000 95% Dallas 4 124,000 87% Austin 2 57,000 31% Other Markets 5 32,000 50% TOTAL 21 801,000 85%

22 Massively Modular Design Techniques Speed of Deployment and Just-in-time Capital Investment 22 1173'-0" 1428'-2'' 2 Washington Monuments 15 Space Shuttles 4 Football Fields 6 747's 4 8 0 '- 1 " 2 5 4 '- 1 0 " 2 2 5 '- 4 " Modular design allows for speed deployment of data center, power savings, cooling efficiencies and reduced capital expenditures Our Carrollton Facility

Kurt Freyberger Chief Financial Officer

24 Q2 2012 and 2011 Income Statement (Unaudited, $’s in millions except per share amounts) 24 2012 2011 $ % Revenue 368.2$ 367.5$ 0.7$ 0% Costs and expenses Cost of services and products 171.7 169.0 2.7 2% Selling, general and administrative 63.4 66.6 (3.2) (5)% Depreciation and amortization 53.7 48.8 4.9 10% Restructuring charges 1.2 - 1.2 n/m Curtailment loss - 4.2 (4.2) n/m Acquisition costs - 0.8 (0.8) n/m Impairment of intangibles and other assets 13.0 0.5 12.5 n/m Operating income 65.2 77.6 (12.4) (16)% Interest expense 53.7 53.4 0.3 1% Income before income taxes 11.5 24.2 (12.7) (52)% Income tax expense 7.0 10.7 (3.7) (35)% Net income 4.5 13.5 (9.0) (67)% Preferred stock dividends 2.6 2.6 - 0% Net income applicable to common shareowners 1.9$ 10.9$ (9.0)$ (83)% Basic earnings per common share 0.01$ 0.06$ Diluted earnings per common share 0.01$ 0.05$ Three Months Ended June 30, Change

25 25 Q2 2012 Free Cash Flow ($18 million) negative Free Cash Flow for 2nd quarter of 2012, or $28 million less than Q2 2011 • $43 million of higher capital expenditures from increased investment in data centers partially offset by • $14 million of higher net inflows from working capital associated with timing of cash payments and receipts ($80 million) negative Free Cash Flow for first half of 2012 and expect trend to continue for remainder of 2012 Significant items influencing 2012 FCF as compared to 2011: • Capital expenditures are expected to range between $300 million and $400 million for 2012 due to the increase in data center investments • Pension and other post-retirement payments expected to be $20 million higher than 2011 • Adjusted EBITDA guidance of $530 million in 2012 compared to $545 million in 2011

26 Available Liquidity 26 ($ in millions) Cash and cash equivalents 4$ Capacity under the Corporate credit facility 210 Capacity under the Receivables facility 63 277$ Liquidity at June 30, 2012

27 2012 Financial Guidance 27 Category 2012 Guidance Revenue $ 1.5 billion Adjusted EBITDA* Approx. $530 million * Plus or minus 2 percent