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: February 27, 2013

CINCINNATI BELL INC.

(Exact Name of Registrant as Specified in its Charter)

Ohio	001-8519	31-1056105
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

221 East Fourth Street

Cincinnati, OH 45202

(Address of Principal Executive Office)

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:

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

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

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

o 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 February 27, 2013, Cincinnati Bell Inc. reported its financial results for the fourth quarter 2012. The earnings release is attached as Exhibit 99.1.

Section 7 - Regulation FD

Item 7.01     Regulation FD Disclosure

On February 27, 2013, Theodore H. Torbeck, the Company's president and chief executive officer, and Kurt A. Freyberger, the Company's chief financial officer, will present fourth 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 Exhibit 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)	Exhibit No.	Description
	Exhibit 99.1	Press release dated February 27, 2013
	Exhibit 99.2	Presentation made during the Cincinnati Bell fourth quarter 2012 earnings conference call on February 27, 2013

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 February 27, 2013. 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:	February 27, 2013	By:	/s/ Christopher J. Wilson
			Christopher J. Wilson
			Vice President, General Counsel and Secretary

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press release dated February 27, 2013
99.2	Presentation made during the Cincinnati Bell fourth quarter 2012 earnings conference call on February 27, 2013

3

EX-99.1

Cincinnati Bell Reports Fourth Quarter and Full Year 2012 Results

CINCINNATI - February 27, 2013 - Cincinnati Bell Inc. (NYSE:CBB) today announced financial results for the full year and fourth quarter of 2012.

Highlights

• Achieved 2012 financial guidance for Revenue and Adjusted EBITDA

• Completed successful IPO of CyrusOne in January 2013 and retained 69 percent ongoing ownership of CyrusOne

• Passed 71,000 units with Fioptics in 2012 and achieved 28 percent customer penetration

Ted Torbeck, president and chief executive officer, stated, “In 2012, Cincinnati Bell delivered solid financial results while executing on a data center strategy that positions us to significantly reduce debt and fundamentally change Cincinnati Bell's future leverage profile.”

“As the new CEO of Cincinnati Bell, I am honored to be leading a company with a very strong foundation from which to build. While challenges exist, our growth initiatives are clear. Our fiber investments are delivering strong results, and are approaching an inflection point. In 2013, we will increase capital investment to accelerate our fiber deployment to consumers and businesses in Cincinnati. As a result, we believe we can return our Wireline business to growth in 2014,” Mr. Torbeck concluded.

Fourth Quarter and Full-Year Performance Highlights

• Revenue of $1.5 billion was in line with guidance and reflects a 1 percent increase over 2011. Fourth quarter 2012 revenue was $375 million, up $9 million from the same period in 2011. Full year earnings before interest, taxes, depreciation and amortization¹ (Adjusted EBITDA) was $535 million for 2012, ahead of guidance of $530 million and down 2 percent compared to 2011.

• Wireline revenue for the quarter was $182 million, flat compared to the prior year when considering a one-time charge for credits recorded in the fourth quarter of 2011. Revenue for the full year of $731 million was down slightly compared to 2011, as the growth in Fioptics and data revenue from business customers continues to partially offset the impact of access line losses. Wireline Adjusted EBITDA for the full year was $344 million, resulting in an Adjusted EBITDA margin² of 47 percent, down from 49 percent in the full year of 2011.  

• CyrusOne revenue for the quarter increased 18 percent year-over-year to $58 million, and revenue for the full year of $221 million represents a 20 percent increase over 2011. CyrusOne Adjusted EBITDA for the full year was $115 million, an increase of 13 percent compared to 2011, resulting in an Adjusted EBITDA margin of 52 percent. During the fourth quarter, the company added 36,000 square feet of data center space and sold 41,000 square feet. For the year, the company constructed 199,000 square feet of additional data center space, increasing total capacity to 932,000 square feet, and sold 92,000 square feet of space. As a result, the segment's utilization at the end of 2012 was 78 percent.

• CyrusOne raised $525 million in 6.375% senior notes in the fourth quarter, and $480 million of the proceeds were used by the company to repay Cincinnati Bell corporate bonds and other debt. The company's net debt³, excluding CyrusOne, totaled $2.1 billion at the end of 2012.

Fourth Quarter and Full Year Review

For the year, revenue of $1.5 billion reflects a 1 percent increase over 2011, while fourth quarter revenue was 3 percent higher than the comparable period in 2011. Operating income for the full year of 2012 was $270 million, up 4 percent compared to 2011, with operating income from the quarter totaling $58 million. Net income for the year of $11 million was affected by a loss on extinguishment of debt of $14 million, asset impairments of $14 million and CyrusOne REIT formation and other transaction costs of $6 million. Net income excluding special items⁴ for the year was $34 million and resulted in 11 cents per diluted share, down from 24 cents in 2011 due primarily to additional depreciation associated with our CyrusOne capital expenditures. Full year 2012 Adjusted EBITDA was $535 million, which includes an $8 million mark-to-market charge on certain compensation plans as a result of the increase in the company's stock price in 2012, and was down from 2011 Adjusted EBITDA of $545 million.

“With the repayment of our 2015 bonds and other indebtedness in the fourth quarter, the company has no significant maturities until 2017,” said Kurt Freyberger, chief financial officer. “We believe our current capital structure provides sufficient flexibility to support the growth of both our Fioptics suite of products and our business-class fiber product offerings.”

Wireline Segment

For the quarter, Wireline revenue of $182 million was flat compared to the fourth quarter of 2011, after adjusting 2011 for one-time revenue credits, as the company's Fioptics and strategic business data and VoIP product lines continue their growth trend, offsetting the impact of access line losses. For the full year, Wireline revenue totaled $731 million compared to $732 million generated in 2011.

Operating income was $50 million in the quarter, up slightly compared to the same period in 2011, while the full year 2012 operating income was $213 million, down $16 million or 7 percent compared to 2011.

Adjusted EBITDA was $84 million in the fourth quarter of 2012 and $344 million for the full year, down 4 percent and 3 percent, respectively, from the same periods in 2011. Adjusted EBITDA margins of 46 percent for the quarter and 47 percent for the year were also down from 2011, driven largely by the continued loss of higher-margin access lines and the additional costs associated with Fioptics customer acquisition.

At the end of the fourth quarter, the company had a total of 205,000 homes and businesses passed with Fioptics, which represents approximately 26 percent of the Greater Cincinnati market. The segment attained an additional 4,000 Fioptics entertainment customers in the quarter and an additional 5,000 Fioptics high-speed internet subscribers, increasing the total number of such subscribers to 55,000 and 57,000, respectively. Total high-speed internet subscribers numbered 259,000 at the end of the fourth quarter, up from 257,000 at the end of 2011, as the increase in Fioptics subscribers continues to more than offset the decrease in DSL high-speed internet subscribers.

Wireless Segment

Wireless revenue was $57 million for the quarter, a decrease of 17 percent from the fourth quarter of 2011, and 2012 full year revenue of $242 million was down 13 percent compared to 2011 as postpaid subscriber losses continued. The segment generated operating income of $8 million in the quarter and $51 million for the year.

Adjusted EBITDA of $17 million in the quarter resulted in an Adjusted EBITDA margin of 30 percent. Adjusted EBITDA for the year totaled $85 million, which equated to a 35 percent Adjusted EBITDA margin.

Total wireless subscribers at the end of the quarter decreased to 398,000 compared to 459,000 at the end of 2011.

Data Center Colocation Segment

CyrusOne fourth quarter revenue was $58 million, an 18 percent increase over the fourth quarter in 2011, and annual revenues were $221 million, up 20 percent compared to 2011. The segment's operating income of $8 million in the quarter and $30 million for the year was down $2 million and $16 million, respectively, compared to the same periods in 2011.

Adjusted EBITDA for the quarter was $28 million compared to $27 million in the fourth quarter of 2011, reflecting higher revenue and additional overhead and other expenses as the company continued to prepare to operate as a stand-alone, publicly-traded real estate investment trust entity. As a result, the segment's Adjusted EBITDA margin in the quarter was 48 percent, down from 56 percent in the fourth quarter of 2011. For the year, Adjusted EBITDA of $115 million reflects a 13 percent increase over 2011. The company's 2012 Adjusted EBITDA margin was 52 percent compared to 55 percent in 2011.

CyrusOne added 36,000 square feet of new data center space during the quarter and 199,000 square feet for the full year, increasing total capacity to 932,000 square feet at the end of 2012. The company sold 41,000 square feet of new space during the fourth quarter, and 92,000 square feet for the full year.

IT Services and Hardware Segment

For the quarter, revenue was $87 million, a 15 percent increase over the fourth quarter in 2011, driven by strong hardware sales which were up 19 percent year-over-year. The segment's full-year revenue of $316 million was up 5 percent over 2011 due to a $17 million year-over-year increase in managed and professional services. Adjusted EBITDA in the quarter was $4 million, resulting in an Adjusted EBITDA margin of 5 percent. Adjusted EBITDA generated in the full year was $18 million, down $2 million from 2011.

2013 Outlook

Cincinnati Bell is providing the following guidance for 2013, which excludes CyrusOne results:

Category	2013 Guidance
Revenue	$1.2 billion
Adjusted EBITDA	Approx. $390 million*

*Plus or minus 2 percent

Conference Call/Webcast

Cincinnati Bell will host a conference call on February 27, 2013 at 8:30 a.m. (ET) to discuss its results for the fourth quarter and full year 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) 581-1572. A taped replay of the conference call will be available one hour after the conclusion of the call until 8:30 a.m. on Wednesday March 13, 2013. 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 6508834. 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, net debt, net income excluding special items, and free cash flow. 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.

³Net 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.

⁴Net 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.

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.

About Cincinnati Bell Inc.

With headquarters in Cincinnati, Ohio, Cincinnati Bell (NYSE: CBB) provides integrated communications solutions - including local and long distance voice, data, high-speed 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, enterprise customers across the United States rely on Cincinnati Bell for efficient, scalable office communications systems and end-to-end IT solutions. Cincinnati Bell also is the majority owner of CyrusOne (NASDAQ: CONE), which provides best-in-class data center colocation services to enterprise customers through its facilities with fully redundant power and cooling solutions that are currently located in the Midwest, Texas, Arizona, London and Singapore. For more information, please visit www.cincinnatibell.com.

Cincinnati Bell Inc.
Consolidated Statements of Operations
(Unaudited)
(Dollars in millions, except per share amounts)
				Three Months Ended											Twelve Months Ended
				December 31,						Change					December 31,						Change
				2012			2011			$			%		2012			2011			$			%
	Revenue			$	374.7		$	365.3		$	9.4		3	%	$	1,473.9		$	1,462.4		$	11.5		1	%
	Costs and expenses
		Cost of services and products		184.8			174.5			10.3			6	%	694.6			677.3			17.3			3	%
		Selling, general and administrative		69.9			65.4			4.5			7	%	269.5			263.1			6.4			2	%
		Depreciation and amortization		57.2			53.2			4.0			8	%	217.4			199.5			17.9			9	%
		Restructuring charges		0.4			12.2			(11.8		)	(97	)%	3.4			12.2			(8.8		)	(72	)%
		Curtailment loss		—			—			—			n/m		—			4.2			(4.2		)	n/m
		Gain on sale or disposal of assets		(1.0		)	—			(1.0		)	n/m		(1.6		)	(8.4		)	6.8			81	%
		Impairment of goodwill and other assets		0.9			50.8			(49.9		)	(98	)%	14.2			52.4			(38.2		)	(73	)%
		Transaction costs		4.6			—			4.6			n/m		6.3			2.6			3.7			n/m
			Operating income	57.9			9.2			48.7			n/m		270.1			259.5			10.6			4	%
	Interest expense			55.6			53.8			1.8			3	%	218.9			215.0			3.9			2	%
	Loss on extinguishment of debt			13.6			—			13.6			n/m		13.6			—			13.6			n/m
	Other expense, net			0.1			0.9			(0.8		)	(89	)%	1.7			0.9			0.8			89	%
	Income (loss) before income taxes			(11.4		)	(45.5		)	34.1			75	%	35.9			43.6			(7.7		)	(18	)%
	Income tax expense (benefit)			(1.6		)	(15.1		)	13.5			89	%	24.7			25.0			(0.3		)	(1	)%
	Net income (loss)			(9.8		)	(30.4		)	20.6			68	%	11.2			18.6			(7.4		)	(40	)%
	Preferred stock dividends			2.6			2.6			—			0	%	10.4			10.4			—			0	%
	Net income (loss) applicable to common shareowners			$	(12.4	)	$	(33.0	)	$	20.6		62	%	$	0.8		$	8.2		$	(7.4	)	(90	)%
	Basic earnings (loss) per common share			$	(0.06	)	$	(0.17	)						$	0.00		$	0.04
	Diluted earnings (loss) per common share			$	(0.06	)	$	(0.17	)						$	0.00		$	0.04
	Weighted average common shares outstanding
		(in millions)
		- Basic		199.9			194.9								197.0			196.8
		- Diluted		199.9			194.9								204.7			200.0

Cincinnati Bell Inc.
Consolidated Statements of Operations
(Unaudited)
(Dollars in millions, except per share amounts)
				Three Months Ended
				December 31,			September 30,			Change
				2012			2012			$			%
	Revenue			$	374.7		$	368.2		$	6.5		2	%
	Costs and expenses
		Cost of services and products		184.8			172.3			12.5			7	%
		Selling, general and administrative		69.9			72.2			(2.3		)	(3	)%
		Depreciation and amortization		57.2			55.4			1.8			3	%
		Restructuring charges		0.4			0.9			(0.5		)	(56	)%
		Gain on sale or disposal of assets		(1.0		)	(0.6		)	(0.4		)	(67	)%
		Impairment of goodwill and other assets		0.9			0.3			0.6			n/m
		Transaction costs		4.6			1.7			2.9			n/m
			Operating income	57.9			66.0			(8.1		)	(12	)%
	Interest expense			55.6			55.2			0.4			1	%
	Loss on extinguishment of debt			13.6			—			13.6			n/m
	Other expense, net			0.1			0.1			—			0	%
	Income (loss) before income taxes			(11.4		)	10.7			(22.1		)	n/m
	Income tax expense (benefit)			(1.6		)	6.8			(8.4		)	n/m
	Net income (loss)			(9.8		)	3.9			(13.7		)	n/m
	Preferred stock dividends			2.6			2.6			—			0	%
	Net income (loss) applicable to common shareowners			$	(12.4	)	$	1.3		$	(13.7	)	n/m
	Basic earnings (loss) per common share			$	(0.06	)	$	0.01
	Diluted earnings (loss) per common share			$	(0.06	)	$	0.01
	Weighted average common shares outstanding
		(in millions)
		- Basic		199.9			196.4
		- Diluted		199.9			205.6

Cincinnati Bell Inc.
Income Statements by Segment
(Unaudited)
(Dollars in millions)
			Three Months Ended											Twelve Months Ended
			December 31,						Change					December 31,					Change
			2012			2011			$			%		2012			2011		$			%
	Wireline
	Revenue
		Voice - local service	$	61.7		$	66.2		$	(4.5	)	(7	)%	$	255.4		$	280.3	$	(24.9	)	(9	)%
		Data	77.5			74.2			3.3			4	%	306.9			291.5		15.4			5	%
		Long distance and VoIP	27.8			28.0			(0.2		)	(1	)%	113.9			111.3		2.6			2	%
		Entertainment	9.8			7.2			2.6			36	%	35.4			26.6		8.8			33	%
		Other	5.3			4.7			0.6			13	%	18.9			22.4		(3.5		)	(16	)%
		Total revenue	182.1			180.3			1.8			1	%	730.5			732.1		(1.6		)	0	%
	Operating costs and expenses
		Cost of services and products	72.3			67.8			4.5			7	%	283.8			270.0		13.8			5	%
		Selling, general and administrative	31.6			29.7			1.9			6	%	125.6			126.7		(1.1		)	(1	)%
		Depreciation and amortization	27.1			26.3			0.8			3	%	106.0			102.4		3.6			4	%
		Other*	1.0			8.2			(7.2		)	(88	)%	2.2			4.5		(2.3		)	(51	)%
		Total operating costs and expenses	132.0			132.0			—			0	%	517.6			503.6		14.0			3	%
	Operating income		$	50.1		$	48.3		$	1.8		4	%	$	212.9		$	228.5	$	(15.6	)	(7	)%
	Wireless
	Revenue
		Service	$	52.8		$	60.4		$	(7.6	)	(13	)%	$	224.5		$	252.4	$	(27.9	)	(11	)%
		Equipment	4.0			8.0			(4.0		)	(50	)%	17.3			25.2		(7.9		)	(31	)%
		Total revenue	56.8			68.4			(11.6		)	(17	)%	241.8			277.6		(35.8		)	(13	)%
	Operating costs and expenses
		Cost of services and products	28.3			36.1			(7.8		)	(22	)%	113.0			134.2		(21.2		)	(16	)%
		Selling, general and administrative	11.4			13.4			(2.0		)	(15	)%	43.7			55.2		(11.5		)	(21	)%
		Depreciation and amortization	7.9			8.4			(0.5		)	(6	)%	31.9			33.5		(1.6		)	(5	)%
		Other*	1.5			50.3			(48.8		)	(97	)%	2.0			51.4		(49.4		)	(96	)%
		Total operating costs and expenses	49.1			108.2			(59.1		)	(55	)%	190.6			274.3		(83.7		)	(31	)%
	Operating income (loss)		$	7.7		$	(39.8	)	$	47.5		n/m		$	51.2		$	3.3	$	47.9		n/m
	Data Center Colocation
	Revenue		$	58.0		$	49.1		$	8.9		18	%	$	221.3		$	184.7	$	36.6		20	%
	Operating costs and expenses
		Cost of services	20.6			15.8			4.8			30	%	75.7			59.7		16.0			27	%
		Selling, general and administrative	9.8			6.4			3.4			53	%	31.0			23.8		7.2			30	%
		Depreciation and amortization	19.7			16.6			3.1			19	%	70.6			54.8		15.8			29	%
		Other*	—			—			—			n/m		13.6			—		13.6			n/m
		Total operating costs and expenses	50.1			38.8			11.3			29	%	190.9			138.3		52.6			38	%
	Operating income		$	7.9		$	10.3		$	(2.4	)	(23	)%	$	30.4		$	46.4	$	(16.0	)	(34	)%
	IT Services and Hardware
	Revenue
		Telecom and IT equipment distribution	$	59.6		$	49.9		$	9.7		19	%	$	204.6		$	206.0	$	(1.4	)	(1	)%
		Managed and professional services	27.3			25.7			1.6			6	%	111.1			94.5		16.6			18	%
		Total revenue	86.9			75.6			11.3			15	%	315.7			300.5		15.2			5	%
	Operating costs and expenses
		Cost of services and products	72.4			62.4			10.0			16	%	255.7			243.0		12.7			5	%
		Selling, general and administrative	10.3			8.4			1.9			23	%	42.3			37.4		4.9			13	%
		Depreciation and amortization	2.3			1.8			0.5			28	%	8.6			8.4		0.2			2	%
		Other*	(1.2		)	1.9			(3.1		)	n/m		(1.2		)	1.9		(3.1		)	n/m
		Total operating costs and expenses	83.8			74.5			9.3			12	%	305.4			290.7		14.7			5	%
	Operating income		$	3.1		$	1.1		$	2.0		n/m		$	10.3		$	9.8	$	0.5		5	%
		*Other includes restructuring charges, curtailment loss, gain on sale or disposal of assets, impairment of goodwill and asset impairments.

Cincinnati Bell Inc.
Income Statements by Segment
(Unaudited)
(Dollars in millions)
			Three Months Ended
			December 31,			September 30,		Change
			2012			2012		$			%
	Wireline
	Revenue
		Voice - local service	$	61.7		$	63.0	$	(1.3	)	(2	)%
		Data	77.5			77.2		0.3			0	%
		Long distance and VoIP	27.8			28.1		(0.3		)	(1	)%
		Entertainment	9.8			9.5		0.3			3	%
		Other	5.3			4.5		0.8			18	%
		Total revenue	182.1			182.3		(0.2		)	0	%
	Operating costs and expenses
		Cost of services and products	72.3			71.5		0.8			1	%
		Selling, general and administrative	31.6			32.8		(1.2		)	(4	)%
		Depreciation and amortization	27.1			26.6		0.5			2	%
		Other*	1.0			0.5		0.5			100	%
		Total operating costs and expenses	132.0			131.4		0.6			0	%
	Operating income		$	50.1		$	50.9	$	(0.8	)	(2	)%
	Wireless
	Revenue
		Service	$	52.8		$	55.0	$	(2.2	)	(4	)%
		Equipment	4.0			4.5		(0.5		)	(11	)%
		Total revenue	56.8			59.5		(2.7		)	(5	)%
	Operating costs and expenses
		Cost of services and products	28.3			27.8		0.5			2	%
		Selling, general and administrative	11.4			11.0		0.4			4	%
		Depreciation and amortization	7.9			8.1		(0.2		)	(2	)%
		Other*	1.5			—		1.5			n/m
		Total operating costs and expenses	49.1			46.9		2.2			5	%
	Operating income		$	7.7		$	12.6	$	(4.9	)	(39	)%
	Data Center Colocation
	Revenue		$	58.0		$	56.7	$	1.3		2	%
	Operating costs and expenses
		Cost of services	20.6			20.0		0.6			3	%
		Selling, general and administrative	9.8			7.1		2.7			38	%
		Depreciation and amortization	19.7			18.3		1.4			8	%
		Other*	—			0.1		(0.1		)	n/m
		Total operating costs and expenses	50.1			45.5		4.6			10	%
	Operating income		$	7.9		$	11.2	$	(3.3	)	(29	)%
	IT Services and Hardware
	Revenue
		Telecom and IT equipment distribution	$	59.6		$	49.5	$	10.1		20	%
		Managed and professional services	27.3			28.8		(1.5		)	(5	)%
		Total revenue	86.9			78.3		8.6			11	%
	Operating costs and expenses
		Cost of services and products	72.4			61.3		11.1			18	%
		Selling, general and administrative	10.3			10.8		(0.5		)	(5	)%
		Depreciation and amortization	2.3			2.4		(0.1		)	(4	)%
		Other*	(1.2		)	—		(1.2		)	n/m
		Total operating costs and expenses	83.8			74.5		9.3			12	%
	Operating income		$	3.1		$	3.8	$	(0.7	)	(18	)%
		*Other includes restructuring charges, gain on sale or disposal of assets, impairment of goodwill and asset impairments.

Cincinnati Bell Inc.
Segment Information
(Unaudited)
(Dollars in millions)
			Three Months Ended											Twelve Months Ended
			December 31,						Change					December 31,						Change
			2012			2011			$			%		2012			2011			$			%
	Revenue
		Wireline	$	182.1		$	180.3		$	1.8		1	%	$	730.5		$	732.1		$	(1.6	)	0	%
		Wireless	56.8			68.4			(11.6		)	(17	)%	241.8			277.6			(35.8		)	(13	)%
		Data Center Colocation	58.0			49.1			8.9			18	%	221.3			184.7			36.6			20	%
		IT Services and Hardware	86.9			75.6			11.3			15	%	315.7			300.5			15.2			5	%
		Eliminations	(9.1		)	(8.1		)	(1.0		)	(12	)%	(35.4		)	(32.5		)	(2.9		)	(9	)%
		Total revenue	$	374.7		$	365.3		$	9.4		3	%	$	1,473.9		$	1,462.4		$	11.5		1	%
	Cost of Services and Products
		Wireline	$	72.3		$	67.8		$	4.5		7	%	$	283.8		$	270.0		$	13.8		5	%
		Wireless	28.3			36.1			(7.8		)	(22	)%	113.0			134.2			(21.2		)	(16	)%
		Data Center Colocation	20.6			15.8			4.8			30	%	75.7			59.7			16.0			27	%
		IT Services and Hardware	72.4			62.4			10.0			16	%	255.7			243.0			12.7			5	%
		Eliminations	(8.8		)	(7.6		)	(1.2		)	(16	)%	(33.6		)	(29.6		)	(4.0		)	(14	)%
		Total cost of services and products	$	184.8		$	174.5		$	10.3		6	%	$	694.6		$	677.3		$	17.3		3	%
	Selling, General and Administrative
		Wireline	$	31.6		$	29.7		$	1.9		6	%	$	125.6		$	126.7		$	(1.1	)	(1	)%
		Wireless	11.4			13.4			(2.0		)	(15	)%	43.7			55.2			(11.5		)	(21	)%
		Data Center Colocation	9.8			6.4			3.4			53	%	31.0			23.8			7.2			30	%
		IT Services and Hardware	10.3			8.4			1.9			23	%	42.3			37.4			4.9			13	%
		Corporate and eliminations	6.8			7.5			(0.7		)	(9	)%	26.9			20.0			6.9			35	%
		Total selling, general and administrative	$	69.9		$	65.4		$	4.5		7	%	$	269.5		$	263.1		$	6.4		2	%
	Depreciation and Amortization
		Wireline	$	27.1		$	26.3		$	0.8		3	%	$	106.0		$	102.4		$	3.6		4	%
		Wireless	7.9			8.4			(0.5		)	(6	)%	31.9			33.5			(1.6		)	(5	)%
		Data Center Colocation	19.7			16.6			3.1			19	%	70.6			54.8			15.8			29	%
		IT Services and Hardware	2.3			1.8			0.5			28	%	8.6			8.4			0.2			2	%
		Corporate	0.2			0.1			0.1			100	%	0.3			0.4			(0.1		)	(25	)%
		Total depreciation and amortization	$	57.2		$	53.2		$	4.0		8	%	$	217.4		$	199.5		$	17.9		9	%
	Other*
		Wireline	$	1.0		$	8.2		$	(7.2	)	(88	)%	$	2.2		$	4.5		$	(2.3	)	(51	)%
		Wireless	1.5			50.3			(48.8		)	(97	)%	2.0			51.4			(49.4		)	(96	)%
		Data Center Colocation	—			—			—			n/m		13.6			—			13.6			n/m
		IT Services and Hardware	(1.2		)	1.9			(3.1		)	n/m		(1.2		)	1.9			(3.1		)	n/m
		Corporate	3.6			2.6			1.0			38	%	5.7			5.2			0.5			10	%
		Total other	$	4.9		$	63.0		$	(58.1	)	(92	)%	$	22.3		$	63.0		$	(40.7	)	(65	)%
	Operating Income (Loss)
		Wireline	$	50.1		$	48.3		$	1.8		4	%	$	212.9		$	228.5		$	(15.6	)	(7	)%
		Wireless	7.7			(39.8		)	47.5			n/m		51.2			3.3			47.9			n/m
		Data Center Colocation	7.9			10.3			(2.4		)	(23	)%	30.4			46.4			(16.0		)	(34	)%
		IT Services and Hardware	3.1			1.1			2.0			n/m		10.3			9.8			0.5			5	%
		Corporate	(10.9		)	(10.7		)	(0.2		)	(2	)%	(34.7		)	(28.5		)	(6.2		)	(22	)%
		Total operating income	$	57.9		$	9.2		$	48.7		n/m		$	270.1		$	259.5		$	10.6		4	%
		*Other includes restructuring charges, curtailment loss, gain on sale or disposal of assets, impairment of goodwill, asset impairments and transaction costs.

Cincinnati Bell Inc.
Segment Information
(Unaudited)
(Dollars in millions)
			Three Months Ended
			December 31,			September 30,			Change
			2012			2012			$			%
	Revenue
		Wireline	$	182.1		$	182.3		$	(0.2	)	0	%
		Wireless	56.8			59.5			(2.7		)	(5	)%
		Data Center Colocation	58.0			56.7			1.3			2	%
		IT Services and Hardware	86.9			78.3			8.6			11	%
		Eliminations	(9.1		)	(8.6		)	(0.5		)	(6	)%
		Total revenue	$	374.7		$	368.2		$	6.5		2	%
	Cost of Services and Products
		Wireline	$	72.3		$	71.5		$	0.8		1	%
		Wireless	28.3			27.8			0.5			2	%
		Data Center Colocation	20.6			20.0			0.6			3	%
		IT Services and Hardware	72.4			61.3			11.1			18	%
		Eliminations	(8.8		)	(8.3		)	(0.5		)	(6	)%
		Total cost of services and products	$	184.8		$	172.3		$	12.5		7	%
	Selling, General and Administrative
		Wireline	$	31.6		$	32.8		$	(1.2	)	(4	)%
		Wireless	11.4			11.0			0.4			4	%
		Data Center Colocation	9.8			7.1			2.7			38	%
		IT Services and Hardware	10.3			10.8			(0.5		)	(5	)%
		Corporate and eliminations	6.8			10.5			(3.7		)	(35	)%
		Total selling, general and administrative	$	69.9		$	72.2		$	(2.3	)	(3	)%
	Depreciation and Amortization
		Wireline	$	27.1		$	26.6		$	0.5		2	%
		Wireless	7.9			8.1			(0.2		)	(2	)%
		Data Center Colocation	19.7			18.3			1.4			8	%
		IT Services and Hardware	2.3			2.4			(0.1		)	(4	)%
		Corporate	0.2			—			0.2			n/m
		Total depreciation and amortization	$	57.2		$	55.4		$	1.8		3	%
	Other*
		Wireline	$	1.0		$	0.5		$	0.5		100	%
		Wireless	1.5			—			1.5			n/m
		Data Center Colocation	—			0.1			(0.1		)	n/m
		IT Services and Hardware	(1.2		)	—			(1.2		)	n/m
		Corporate	3.6			1.7			1.9			n/m
		Total other	$	4.9		$	2.3		$	2.6		n/m
	Operating Income
		Wireline	$	50.1		$	50.9		$	(0.8	)	(2	)%
		Wireless	7.7			12.6			(4.9		)	(39	)%
		Data Center Colocation	7.9			11.2			(3.3		)	(29	)%
		IT Services and Hardware	3.1			3.8			(0.7		)	(18	)%
		Corporate	(10.9		)	(12.5		)	1.6			13	%
		Total operating income	$	57.9		$	66.0		$	(8.1	)	(12	)%
		*Other includes restructuring charges, gain on sale or disposal of assets, transaction costs and asset impairments.

Cincinnati Bell Inc.
Segment Metric Information
(Unaudited)
(In thousands)
			December 31,		September 30,		December 31,
			2012		2012		2011
	Local access lines		573.9		585.8		621.3
	Long distance lines		417.9		426.4		447.4
	High-speed internet subscribers
		DSL subscribers	202.6		207.8		218.0
		Fioptics subscribers	56.8		52.3		39.3
			259.4		260.1		257.3
	Fioptics entertainment subscribers		55.1		51.1		39.6
	Wireless
		Postpaid wireless subscribers	251.3		270.7		311.0
		Prepaid wireless subscribers	146.5		144.9		148.0
			397.8		415.6		459.0
	Data Center Colocation
		Data center capacity (in square feet)	932.0		896.0		763.0
		Utilization rate*	78	%	78	%	88	%
	*	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 billing 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	3Q	4Q
	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	274.3	266.4
	Secondary Residential	21.8	20.8	19.3	19.1	18.3	16.3	15.6	14.9	14.2	13.6	13.1	12.5
	Business/ Other	261.9	258.7	256.2	252.5	250.7	248.7	244.4	240.8	238.5	237.5	234.4	232.1
	Total In-Territory	637.8	625.0	612.3	600.5	590.8	578.8	564.8	552.4	541.6	532.8	521.8	511.0
	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	23.3	22.4
	Secondary Residential	1.1	1.1	1.0	1.0	0.9	0.9	0.9	0.8	0.8	0.8	0.7	0.7
	Business/ Other	39.9	40.4	41.5	41.4	41.5	41.6	41.8	41.4	41.0	40.6	40.0	39.8
	Total Out-of-Territory	73.9	74.0	74.6	73.6	72.8	71.8	70.5	68.9	67.0	65.7	64.0	62.9
	Total Access Lines	711.7	699.0	686.9	674.1	663.6	650.6	635.3	621.3	608.6	598.5	585.8	573.9

Cincinnati Bell Inc.
Net Debt and Common Shares Outstanding
(Unaudited)
(Dollars and shares in millions)
		December 31,			September 30,			December 31,
		2012			2012			2011
Receivables Facility		$	52.0		$	44.0		$	—
7% Senior Notes due 2015		—			249.7			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		683.9			775.0			775.0
CyrusOne 6 3/8% Senior Notes due 2022		525.0			—			—
7 1/4% Senior Notes due 2023		40.0			40.0			40.0
Various Cincinnati Bell Telephone notes		134.5			207.5			207.5
Capital leases and other debt		136.5			141.5			144.4
Net unamortized discount		(7.5		)	(7.5		)	(8.7		)
	Total debt	2,689.4			2,575.2			2,533.6
Less: Interest rate swap adjustment		—			(2.2		)	(2.9		)
Less: Cash and cash equivalents		(23.6		)	(7.7		)	(73.7		)
	Net debt (as defined by the company)	$	2,665.8		$	2,565.3		$	2,457.0
Credit facility availability:
	Corporate	200.0			210.0			210.0
	CyrusOne*	225.0			—			—
		$	425.0		$	210.0		$	210.0
Common shares outstanding		202.5			199.4			195.7
*	On January 24, 2013, we completed the initial public offering of CyrusOne, and Cincinnati Bell no longer has access to this facility.

Cincinnati Bell Inc.
Reconciliation of Net Income (Loss) (GAAP) to Adjusted EBITDA (Non-GAAP)
(Unaudited)
(Dollars in millions)
			Three Months Ended December 31, 2012
			Wireline			Wireless			Data Center Colocation			IT Services & Hardware			Corporate			Total Company
	Net Loss (GAAP)																	$	(9.8	)
	Add:
		Income tax benefit																(1.6		)
		Interest expense																55.6
		Loss on extinguishment of debt																13.6
		Other expense, net																0.1
	Operating Income (GAAP)		$	50.1		$	7.7		$	7.9		$	3.1		$	(10.9	)	$	57.9
	Add:
		Depreciation and amortization	27.1			7.9			19.7			2.3			0.2			57.2
		Restructuring charges (reversals)	1.9			1.1			—			(1.2		)	(1.4		)	0.4
		Loss (gain) on sale or disposal of assets	(1.4		)	—			—			—			0.4			(1.0		)
		Transaction costs	—			—			—			—			4.6			4.6
		Impairment of goodwill and other assets	0.5			0.4			—			—			—			0.9
		Legal claim costs	—			—			0.2			—			—			0.2
		Pension and other retirement plan expenses	5.8			—			—			—			0.3			6.1
	Adjusted EBITDA (Non-GAAP)		$	84.0		$	17.1		$	27.8		$	4.2		$	(6.8	)	$	126.3
	Adjusted EBITDA Margin		46		%	30		%	48		%	5		%	—			34		%
			Three Months Ended September 30, 2012
			Wireline			Wireless			Data Center Colocation			IT Services & Hardware			Corporate			Total Company
	Net Income (GAAP)																	$	3.9
	Add:
		Income tax expense																6.8
		Interest expense																55.2
		Other expense, net																0.1
	Operating Income (GAAP)		$	50.9		$	12.6		$	11.2		$	3.8		$	(12.5	)	$	66.0
	Add:
		Depreciation and amortization	26.6			8.1			18.3			2.4			—			55.4
		Restructuring charges	0.9			—			—			—			—			0.9
		Gain on sale or disposal of assets	(0.4		)	—			(0.2		)	—			—			(0.6		)
		Transaction costs	—			—			—			—			1.7			1.7
		Asset impairments	—			—			0.3			—			—			0.3
		Pension and other retirement plan expenses	5.8			—			—			—			0.4			6.2
	Adjusted EBITDA (Non-GAAP)		$	83.8		$	20.7		$	29.6		$	6.2		$	(10.4	)	$	129.9
	Adjusted EBITDA Margin		46		%	35		%	52		%	8		%	—			35		%
	Sequential dollar change in Adjusted EBITDA		$	0.2		$	(3.6	)	$	(1.8	)	$	(2.0	)	$	3.6		$	(3.6	)
	Sequential percentage change in Adjusted EBITDA		0		%	(17		)%	(6		)%	(32		)%	35		%	(3		)%
			Three Months Ended December 31, 2011
			Wireline			Wireless			Data Center Colocation			IT Services & Hardware			Corporate			Total Company
	Net Loss (GAAP)																	$	(30.4	)
	Add:
		Income tax benefit																(15.1		)
		Interest expense																53.8
		Other expense, net																0.9
	Operating Income (Loss) (GAAP)		$	48.3		$	(39.8	)	$	10.3		$	1.1		$	(10.7	)	$	9.2
	Add:
		Depreciation and amortization	26.3			8.4			16.6			1.8			0.1			53.2
		Restructuring charges	7.7			—			—			1.9			2.6			12.2
		Impairment of goodwill and other assets	0.5			50.3			—			—			—			50.8
		Legal claim costs	—			—			0.4			—			0.8			1.2
		Pension and other retirement plan expenses	4.9			—			—			—			0.4			5.3
	Adjusted EBITDA (Non-GAAP)		$	87.7		$	18.9		$	27.3		$	4.8		$	(6.8	)	$	131.9
	Adjusted EBITDA Margin		49		%	28		%	56		%	6		%	—			36		%
	Year-over-year dollar change in Adjusted EBITDA		$	(3.7	)	$	(1.8	)	$	0.5		$	(0.6	)	$	—		$	(5.6	)
	Year-over-year percentage change in Adjusted EBITDA		(4		)%	(10		)%	2		%	(13		)%	0		%	(4		)%

Cincinnati Bell Inc.
Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP)
(Unaudited)
(Dollars in millions)
			Twelve Months Ended December 31, 2012
			Wireline			Wireless			Data Center Colocation			IT Services & Hardware			Corporate			Total Company
	Net Income (GAAP)																	$	11.2
	Add:
		Income tax expense																24.7
		Interest expense																218.9
		Loss on extinguishment of debt																13.6
		Other expense, net																1.7
	Operating Income (GAAP)		$	212.9		$	51.2		$	30.4		$	10.3		$	(34.7	)	$	270.1
	Add:
		Depreciation and amortization	106.0			31.9			70.6			8.6			0.3			217.4
		Restructuring charges (reversals)	3.5			1.6			0.5			(1.2		)	(1.0		)	3.4
		Loss (gain) on sale or disposal of assets	(1.8		)	—			(0.2		)	—			0.4			(1.6		)
		Transaction costs	—			—			—			—			6.3			6.3
		Impairment of goodwill and other assets	0.5			0.4			13.3			—			—			14.2
		Legal claim costs	—			—			0.4			—			—			0.4
		Pension and other retirement plan expenses	23.0			—			—			—			1.4			24.4
	Adjusted EBITDA (Non-GAAP)		$	344.1		$	85.1		$	115.0		$	17.7		$	(27.3	)	$	534.6
	Adjusted EBITDA Margin		47		%	35		%	52		%	6		%	—			36		%
			Twelve Months Ended December 31, 2011
			Wireline			Wireless			Data Center Colocation			IT Services & Hardware			Corporate			Total Company
	Net Income (GAAP)																	$	18.6
	Add:
		Income tax expense																25.0
		Interest expense																215.0
		Other expense, net																0.9
	Operating Income (GAAP)		$	228.5		$	3.3		$	46.4		$	9.8		$	(28.5	)	$	259.5
	Add:
		Depreciation and amortization	102.4			33.5			54.8			8.4			0.4			199.5
		Restructuring charges	7.7			—			—			1.9			2.6			12.2
		Gain on sale of assets	(8.4		)	—			—			—			—			(8.4		)
		Impairment of goodwill and other assets	1.0			51.4			—			—			—			52.4
		Transaction costs	—			—			—			—			2.6			2.6
		Legal claim costs	—			—			0.8			—			0.8			1.6
		Pension and other retirement plan expenses	23.8			—			—			—			1.5			25.3
	Adjusted EBITDA (Non-GAAP)		$	355.0		$	88.2		$	102.0		$	20.1		$	(20.6	)	$	544.7
	Adjusted EBITDA Margin		49		%	32		%	55		%	7		%	—			37		%
	Year-over-year dollar change in Adjusted EBITDA		$	(10.9	)	$	(3.1	)	$	13.0		$	(2.4	)	$	(6.7	)	$	(10.1	)
	Year-over-year percentage change in Adjusted EBITDA		(3		)%	(4		)%	13		%	(12		)%	(33		)%	(2		)%

Cincinnati Bell Inc.
Consolidated Statements of Cash Flows
(Unaudited)
(Dollars in millions)
			Three Months Ended						Twelve Months Ended
			December 31,						December 31,
			2012			2011			2012			2011
	Cash provided by operating activities		$	57.7		$	91.4		$	212.7		$	289.9
		Capital expenditures	(124.3		)	(88.5		)	(367.2		)	(255.5		)
		Increase in restricted cash	—			—			(11.1		)	—
		Release of restricted cash	4.2			—			4.9			—
		Proceeds from sale of assets	1.0			1.7			1.6			11.5
		Other, net	—			(0.4		)	—			(0.7		)
	Cash used in investing activities		(119.1		)	(87.2		)	(371.8		)	(244.7		)
		Proceeds from issuance of long-term debt	525.0			—			525.0			—
		Increase in corporate credit and receivables facilities	8.0			—			52.0			0.4
		Repayment of debt	(431.1		)	(2.5		)	(442.4		)	(11.5		)
		Debt issuance costs	(20.9		)	—			(20.9		)	(0.8		)
		Dividends paid on preferred stock	(2.6		)	(2.6		)	(10.4		)	(10.4		)
		Common stock issuance costs	(5.7		)	—			(5.7		)	—
		Common stock repurchase	—			(0.4		)	(0.3		)	(10.4		)
		Proceeds from exercise of options and warrants	4.0			0.3			12.1			0.4
		Financing obligations and other, net	0.6			(16.0		)	(0.4		)	(16.5		)
	Cash (used in) provided by financing activities		77.3			(21.2		)	109.0			(48.8		)
	Net (decrease) increase in cash and cash equivalents		15.9			(17.0		)	(50.1		)	(3.6		)
	Cash and cash equivalents at beginning of period		7.7			90.7			73.7			77.3
	Cash and cash equivalents at end of period		$	23.6		$	73.7		$	23.6		$	73.7
	Reconciliation of GAAP Cash Flow to
		Free Cash Flow (as defined by the company)
	Net (decrease) increase in cash and cash equivalents		$	15.9		$	(17.0	)	$	(50.1	)	$	(3.6	)
	Less adjustments:
		Proceeds from issuance of long-term debt	(525.0		)	—			(525.0		)	—
		Increase in corporate credit and receivables facilities	(8.0		)	—			(52.0		)	(0.4		)
		Repayment of debt	431.1			2.5			442.4			11.5
		Debt issuance costs	20.9			—			20.9			0.8
		Common stock repurchase	—			0.4			0.3			10.4
		Proceeds from sale of assets, net of expenses	(1.0		)	(1.7		)	(1.6		)	(10.8		)
		Transaction costs	9.3			—			11.0			2.6
		Free cash flow (as defined by the company)	$	(56.8	)	$	(15.8	)	$	(154.1	)	$	10.5
	Income tax payments (refunds)		$	0.4		$	0.1		$	0.1		$	(1.2	)

Cincinnati Bell Inc.
Free Cash Flow (as defined by the company)
(Unaudited)
(Dollars in millions)
	Free Cash Flow for the three months ended December 31, 2011	$	(15.8	)
	Decrease in Adjusted EBITDA	(5.6		)
	Increase in capital expenditures	(35.8		)
	Increase in interest payments	(5.5		)
	Increase in pension and postretirement payments	(1.8		)
	Change in working capital and other	7.7
	Free Cash Flow for the three months ended December 31, 2012	$	(56.8	)
	Free Cash Flow for the twelve months ended December 31, 2011	$	10.5
	Decrease in Adjusted EBITDA	(10.1		)
	Increase in capital expenditures	(111.7		)
	Increase in interest payments	(6.1		)
	Increase in pension and postretirement payments	(6.6		)
	Change in working capital and other	(30.1		)
	Free Cash Flow for the twelve months ended December 31, 2012	$	(154.1	)

Cincinnati Bell Inc.
Capital Expenditures
(Unaudited)
(Dollars in millions)
	Three Months Ended
	Dec. 31, 2012		Sep. 30, 2012		Jun. 30, 2012		Mar. 31, 2012		Dec. 31, 2011
Wireline	$	36.7	$	27.8	$	26.4	$	23.3	$	37.4
Wireless	3.4		4.2		1.9		6.3		7.0
Data Center Colocation	81.8		41.6		52.0		52.8		41.3
IT Services and Hardware	2.4		1.9		2.5		2.2		2.8
Total capital expenditures	$	124.3	$	75.5	$	82.8	$	84.6	$	88.5

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							December 31, 2012
				December 31, 2012							Before Special Items
				(GAAP)			Special Items				(Non-GAAP)
	Revenue			$	374.7		$	—			$	374.7
	Costs and expenses
		Cost of services and products		184.8			—				184.8
		Selling, general and administrative		69.9			(0.2		)	[A]	69.7
		Depreciation and amortization		57.2			—				57.2
		Restructuring charges		0.4			(0.4		)	[B]	—
		Gain on sale or disposal of assets		(1.0		)	1.0			[C]	—
		Impairment of goodwill and other assets		0.9			(0.9		)	[D]	—
		Transaction costs		4.6			(4.6		)	[E]	—
			Operating income	57.9			5.1				63.0
	Interest expense			55.6			—				55.6
	Loss on extinguishment of debt			13.6			(13.6		)	[F]	—
	Other expense, net			0.1			—				0.1
	Income (loss) before income taxes			(11.4		)	18.7				7.3
	Income tax expense (benefit)			(1.6		)	7.5				5.9
	Net income (loss)			(9.8		)	11.2				1.4
	Preferred stock dividends			2.6			—				2.6
	Net income (loss) applicable to common shareowners			$	(12.4	)	$	11.2			$	(1.2	)
	Weighted average diluted common shares			199.9			209.8			[G]	199.9
	Diluted earnings (loss) per common share			$	(0.06	)	$	0.05			$	(0.01	)
	Normalized results have been adjusted for the following (pretax adjustments are tax effected at 40%):
A	Costs associated with investigation and resolution of special legal matters.
B	Restructuring charges consist of severance.
C	Gain on sale of wireline equipment.
D	Impairment of property recorded to reduce the carrying values of these assets to reflect their estimated fair values.
E	Transaction costs consist of legal and consulting fees incurred in legal entity restructuring.
F	Loss on extinguishment of 7% Senior Notes, 8 3/8% Senior Notes and various CBT notes.
G	Dilutive effect of common stock equivalents based on net income excluding special items.

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							December 31, 2011
				December 31, 2011							Before Special Items
				(GAAP)			Special Items				(Non-GAAP)
	Revenue			$	365.3		$	—			$	365.3
	Costs and expenses
		Cost of services and products		174.5			—				174.5
		Selling, general and administrative		65.4			(1.2		)	[A]	64.2
		Depreciation and amortization		53.2			—				53.2
		Restructuring charges		12.2			(12.2		)	[B]	—
		Impairment of goodwill and other assets		50.8			(50.8		)	[C]	—
			Operating income	9.2			64.2				73.4
	Interest expense			53.8			—				53.8
	Other expense, net			0.9			—				0.9
	Income (loss) before income taxes			(45.5		)	64.2				18.7
	Income tax expense (benefit)			(15.1		)	25.7				10.6
	Net income (loss)			(30.4		)	38.5				8.1
	Preferred stock dividends			2.6			—				2.6
	Net income (loss) applicable to common shareowners			$	(33.0	)	$	38.5			$	5.5
	Weighted average diluted common shares			194.9			198.3			[D]	198.3
	Diluted earnings (loss) per common share*			$	(0.17	)	$	0.19			$	0.03
	Normalized results have been adjusted for the following (pretax adjustments are tax effected at 40%):
A	Costs associated with investigation and resolution of special legal matters.
B	Restructuring charges incurred for employee separations, lease abandonments and contract terminations.
C	Impairment of Wireless goodwill and impairment recorded to reduce carrying value of property to reflect its estimated fair value.
D	Dilutive effect of common stock equivalents based on net income excluding special items.
*	The sum of the GAAP and Special Items per share results will not necessarily equal the Non-GAAP per share result.

Cincinnati Bell Inc.
Normalized Statements of Operations (Non-GAAP) - Reconciliation to Reported Results
(Unaudited)
(Dollars in millions, except per share amounts)
											Twelve
				Twelve							Months Ended
				Months Ended							December 31, 2012
				December 31, 2012							Before Special Items
				(GAAP)			Special Items				(Non-GAAP)
	Revenue			$	1,473.9		$	—			$	1,473.9
	Costs and expenses
		Cost of services and products		694.6			—				694.6
		Selling, general and administrative		269.5			(0.4		)	[A]	269.1
		Depreciation and amortization		217.4			—				217.4
		Restructuring charges		3.4			(3.4		)	[B]	—
		Gain on sale or disposal of assets		(1.6		)	1.6			[C]	—
		Impairment of goodwill and other assets		14.2			(14.2		)	[D]	—
		Transaction costs		6.3			(6.3		)	[E]	—
			Operating income	270.1			22.7				292.8
	Interest expense			218.9			—				218.9
	Loss on extinguishment of debt			13.6			(13.6		)	[F]	—
	Other expense, net			1.7			(1.4		)	[G]	0.3
	Income before income taxes			35.9			37.7				73.6
	Income tax expense			24.7			15.1				39.8
	Net income			11.2			22.6				33.8
	Preferred stock dividends			10.4			—				10.4
	Net income applicable to common shareowners			$	0.8		$	22.6			$	23.4
	Weighted average diluted common shares			204.7			204.7				204.7
	Diluted earnings per common share			$	0.00		$	0.11			$	0.11
	Normalized results have been adjusted for the following (pretax adjustments are tax effected at 40%):
A	Costs associated with investigation and resolution of special legal matters.
B	Restructuring charges consist of severance and lease abandonments.
C	Gain on sale of data center and wireline equipment.
D	Impairment of intangibles and property recorded to reduce the carrying values of these assets to reflect their estimated fair values.
E	Transaction costs consist of legal and consulting fees incurred in legal entity restructuring.
F	Loss on extinguishment of 7% Senior Notes, 8 3/8% Senior Notes and various CBT notes.
G	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)
											Twelve
				Twelve							Months Ended
				Months Ended							December 31, 2011
				December 31, 2011							Before Special Items
				(GAAP)			Special Items				(Non-GAAP)
	Revenue			$	1,462.4		$	—			$	1,462.4
	Costs and expenses
		Cost of services and products		677.3			—				677.3
		Selling, general and administrative		263.1			(1.6		)	[A]	261.5
		Depreciation and amortization		199.5			—				199.5
		Restructuring charges		12.2			(12.2		)	[B]	—
		Curtailment loss		4.2			(4.2		)	[C]	—
		Gain of sale of assets		(8.4		)	8.4			[D]	—
		Impairment of goodwill and other assets		52.4			(52.4		)	[E]	—
		Transaction costs		2.6			(2.6		)	[F]	—
			Operating income	259.5			64.6				324.1
	Interest expense			215.0			—				215.0
	Other expense, net			0.9			—				0.9
	Income before income taxes			43.6			64.6				108.2
	Income tax expense			25.0			25.8				50.8
	Net income			18.6			38.8				57.4
	Preferred stock dividends			10.4			—				10.4
	Net income applicable to common shareowners			$	8.2		$	38.8			$	47.0
	Weighted average diluted common shares			200.0			200.0				200.0
	Diluted earnings per common share*			$	0.04		$	0.19			$	0.24
	Normalized results have been adjusted for the following (pretax adjustments are tax effected at 40%):
A	Costs associated with investigation and resolution of special legal matters.
B	Restructuring charges incurred for employee separations, lease abandonments and contract terminations.
C	Curtailment of bargained pension plan as a result of pension service credits being frozen for the majority of the plan participants.
D	Gain on sale of assets sold in connection with the home security monitoring business.
E	Impairment of Wireless goodwill and impairment recorded to reduce carrying value of property to reflect its estimated fair value.
F	Transaction costs consist of legal and professional fees incurred in due diligence.
*	The sum of the GAAP and Special Items per share results will not necessarily equal the Non-GAAP per share result.

Cincinnati Bell Inc.
Reconciliation of Operating Income (GAAP) Guidance to Adjusted EBITDA (Non-GAAP) Guidance
(Unaudited)
(Dollars in millions)
	2013 Operating Income (GAAP) Guidance	$	210
	Add:
	Depreciation and amortization	150
	Pension and other retirement plan expenses	30
	2013 Adjusted EBITDA (Non-GAAP) Guidance	$	390	*
	* Plus or minus 2 percent.

CONTACT:

Cincinnati Bell Inc.

Investor contact:

Josh Duckworth, 513-397-2292

Joshua.Duckworth@cinbell.com

Media contact:

Angela Ginty, 513-397-7144

Angela.Ginty@cinbell.com

EX-99.2

Cincinnati Bell Fourth Quarter 2012 Results February 27, 2013

2 Today’s Agenda 2 2013 Outlook – The Next Chapter Ted Torbeck, Chief Executive Officer 2012 Highlights and Segment Results Kurt Freyberger, Chief Financial Officer 2013 Guidance Kurt Freyberger, Chief Financial Officer Question & Answer

3 Safe Harbor 3 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 Non GAAP Financial Measures 4 This presentation contains information about adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA), Adjusted EBITDA margin, net debt and free cash flow. 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, net debt and free cash flow (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.

Ted Torbeck Chief Executive Officer

6 6 Current State  Well positioned Wireline operations  Opportunity to invest in Fiber growth  Financial investment in growing data center business • Monetization of investment will be used over time to repay debt to appropriate levels  Wireless faces intense competitive pressures • Postpaid subscriber losses expected to continue • EBITDA expected to decline approximately $20 million in 2013

7 7 Accelerating Fiber Investment “the foundation for turning Wireline into a growing business”  Consumer Fioptics • Passed 205k homes and business with Fioptics as of Dec 31, 2012 • Customer penetration in excess of 35% in mature single-family unit (SFU) areas • Household ARPU expansion of 15% • 43% revenue increase year-over-year • $1 billion market opportunity in Cincinnati  Business • Current inventory includes 3600 lit buildings and towers • Construction planned to several hundred additional buildings over 2013-2014 • Fully managed solutions including high-speed data networking, data backup and storage, VoIP, and hosted cloud services  Organizational Optimization • Integrate CBT Wireline business operations with CBTS (IT Services & Hardware segment) o Synergies will result in cost savings of $5 million annually • Enhanced platform for fully managed solutions to mid-market business customers o $250 million market opportunity in Cincinnati  Carrier • Wireless backhaul and “last mile” access o $80 million annual revenue • Long-term committed contracts with strong returns

Kurt Freyberger Chief Financial Officer

9 9 Significant 2012 Highlights  Achieved 2012 financial guidance • Revenue of $1.5 billion in line with guidance • Adjusted EBITDA of $535 million exceeds guidance of $530 million  Successful IPO of CyrusOne in January 2013 • Retained 69% ownership • Current market value of investment is approximately $1 billion

10 10 2012 Full Year Change in Revenue Revenue increases $12 million over 2011 $37 million or 20% increase in Data Center Colocation • Utilized space increased 8% to 730 sq ft at the end of 2012 $15 million or 5% increase in IT Services and Hardware • Increased Managed & Professional Services due to additional projects with large customer ($1 million) decrease in Wireline • Incremental revenue from Fioptics and enterprise fiber products continues to partially mitigate declining access line revenue ($36 million) decrease in Wireless • Subscriber base declined by 13 percent in 2012 ($’s in millions) $1,462 $1,474 ($1) ($36) $15 $37 ($3) 2011 Wireline Wireless IT Svcs and HW DC Colocation Eliminations 2012

11 11 2012 Full Year Change in Adjusted EBITDA Exceeds financial guidance of $530 million $13 million increase in Data Center Colocation • Top line growth of 20% drove EBITDA increases ($2 million) decrease in IT Services and Hardware • Increased costs incurred to support growth in managed and professional services ($3 million) decrease in Wireless • Cost containment efforts mitigated subscriber losses ($11 million) decrease in Wireline • Continued access line loss of 7.6% partially offset by Fioptics EBITDA increase of $8 million ($7 million) decrease in Corporate • 81% increase in stock price resulted in mark-to-market charge on certain compensation plans ($’s in millions) $545 $535 ($11) ($3) ($2) $13 ($7) 2011 Wireline Wireless IT Svcs and HW DC Colocation Corporate 2012

12 12 Wireline Performance ($’s in millions) Revenue Adj. EBITDA Adj. EBITDA Margin Wireline Revenue and Adjusted EBITDA Generated revenue of $182 million, flat year- over-year after considering Q4 2011 one- time credit adjustments • Fioptics generated revenue of $19 million, up 43% over Q4 2011 • Revenue from enterprise fiber-based and VoIP products increased $2 million year- over-year • Access line losses continue to offset revenue growth from Fioptics and enterprise fiber-based and VoIP products Adjusted EBITDA of $84 million in the quarter • Decreasing high-margin voice revenue from access line losses continues to negatively impact Adjusted EBITDA • Growth in Fioptics accounted for a $2 million increase to Adjusted EBITDA year- over-year • Cost-out initiatives continue to partially offset the impact of voice revenue decline $180 $182 $184 $182 $182 $88 $89 $88 $84 $84 49% 49% 48% 46% 46% Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 $88 $84 ($5) $6 $3 ($8) Q4 2011 Voice Revenue Revenue from Entertainment, Data & VoIP Cost-out Initiatives Growth Costs and Other Q4 2012 Wireline Adjusted EBITDA Year over Year Changes

13 Q4 2012 Fioptics subscribers • 205K units now passed; passed 21K in Q4 • 55K entertainment subs; added 4K in Q4 • 57K internet subs; added 5K in Q4 • 41K voice subs; added 3K in Q4 Churn for entertainment subscribers was 2.4% in the quarter, an improvement when compared to 2.7% in Q4 2011 • Churn rate expected to continue improving as Fioptics expands to cover more single family units Fioptics consumer monthly ARPU improved to $135, up from $123 in Q4 2011 and $131 in Q3 2011 2013 Fioptics expansion • Pass additional 72K homes in 2013 • Cover approximately 35% of Greater Cincinnati by end of 2013 13 Fioptics continues to be a success • 28% penetration of total units passed • Penetration rates in excess of 35% in mature SFU neighborhoods (those that have had Fioptics for 24 months or more) Fioptics Activity 40 43 47 51 55 39 43 47 52 57 29 32 35 38 41 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Total Fioptics Subscribers (in thousands) Ent. Subs Internet Subs Voice Subs

14 218 214 210 208 202 39 43 47 52 57 257 257 257 260 259 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Fioptics DSL 621 609 599 586 574 257 257 257 260 259 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Access Lines High-Speed Internet 14 Wireline Subscriber Activity Fioptics high-speed internet subscribers have grown 45% year-over-year Churn of high-speed internet subscribers was 2.2% in the quarter Added 5K Fioptics high-speed internet subscribers in Q4 2012 • Year over year increases more than offset DSL losses Access line loss of 7.6% improved slightly compared to 7.8% in 2011 High-Speed Internet Customers (DSL & Fioptics) Access Lines & High-Speed Internet Customers

15 15 Wireless Performance Revenue Adj. EBITDA Adj. EBITDA Margin Wireless Revenue & Adjusted EBITDA Continued cost containment efforts drove a strong Adjusted EBITDA margin of 30% in the quarter, despite 17% decrease in revenue compared to Q4 2011 Postpaid revenue decreased by 15% from Q4 2011 • Year over year subscriber loss of 19% • Postpaid ARPU was $51.48 for Q4 2012, up $1.16 from Q4 2011 • Data ARPU grew 17% year-over-year • Churn was 3.2% for the quarter Prepaid revenue decreased by 3% from Q4 2011 • Year over year subscriber loss of 1% with modest improvements noted in second half of 2012 • Prepaid ARPU was $28.22, consistent with Q4 2011 • Churn was 5.9% for the quarter, improved from 6.8% in Q4 2011 ($’s in millions) $68 $64 $62 $60 $57 $19 $24 $24 $21 $17 28% 37% 39% 35% 30% Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 311 298 285 271 251 148 148 145 145 147 459 446 430 416 398 Q4 2011 Q1 2012 2 2012 Q3 2012 Q4 2012 Prepaid Postpaid Wireless Customers (In thousands)

16 16 ($’s in millions) IT Services and Hardware Strong revenue of $87 million in Q4 2012 • Telecom & IT Equipment revenue of $60 million was up 19% compared to Q4 2011 • Revenue from Managed and Professional Services increased by $2 million, or 6%, from Q4 2011 Adjusted EBITDA and margin of $4 million and 5%, respectively, during the quarter $76 $73 $77 $78 $87 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Revenue $5 $4 $3 $6 $4 6% 6% 4% 8% 5% Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Adjusted EBITDA Adj. EBITDA Adj. EBITDA Margin

17 Leverage Ratio 17 in millions, except for Leverage ratio Cincinnati Bell Consolidated CyrusOne CBB (Pro-Forma) Net Debt 2,666$ 541$ 2,125$ Less: CBB Equity value of CONE shares 975 Net Debt - As Adjusted 1,150 Adjusted EBITDA - 2013 390$ Leverage - Unadjusted 5.4x Leverage - As Adjusted for CONE investment 2.9x CONE shares owned by CBB 44,476,835 CONE stock price 21.93$ CBB Equity value of CONE shares 975,376,992$ CBB Equity Value of CONE Shares 1 1 - CONE closing stock price as of February 22, 2013 As of December 31, 2012

18 Liquidity Position 18 Communications Group CyrusOne Consolidated Cincinnati Bell ($ in millions) Cash and cash equivalents 8$ 16$ 24$ Capacity under the Corporate credit facility 200 225 425 Capacity under the Receivables facility 32 - 32 240$ 241$ 481$ Liquidity at December 31, 2012 No debt maturities until 2017, which provides the company with liquidity necessary to meet its strategic and operational plans

19 2013 Financial Guidance (excludes CyrusOne operations) 19 * Plus or minus 2 percent Category Guidance Rev nue $ 1.2 billion Adjusted EBITDA* Approx. $390 million * Plus or minus 2 percent

20 20 Certain Free Cash Flow Items (excludes CyrusOne operations)  Capital expenditures are expected to range between $180 - $190 million  Interest payments of approximately $175 million  Pension and OPEB payments of approximately $65 million  CyrusOne dividends of $21 million  Minimal cash taxes  One-time IPO success payments to employees are expected to total $40 - $50 million