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 20, 2014

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 20, 2014, Cincinnati Bell Inc. reported its financial results for the fourth quarter 2013. The earnings release is attached as Exhibit 99.1.

Section 7 - Regulation FD

Item 7.01     Regulation FD Disclosure

On February 20, 2014, Theodore H. Torbeck, the Company's president and chief executive officer, and Leigh R. Fox, the Company's chief financial officer, will present fourth quarter 2013 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 20, 2014
	Exhibit 99.2	Presentation made during the Cincinnati Bell fourth quarter 2013 earnings conference call on February 20, 2014

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 20, 2014. 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 20, 2014	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 20, 2014
99.2	Presentation made during the Cincinnati Bell fourth quarter 2013 earnings conference call on February 20, 2014

3

EX-99.1

Cincinnati Bell Reports Fourth Quarter and Full Year 2013 Results

Highlights

• Strong Adjusted EBITDA of $407 million in line with revised guidance range

• Achieved full year revenue guidance of $1.2 billion

• Revenue from strategic products totaled $359 million, up 17 percent year-over-year

• Fioptics annual revenue exceeded $100 million, up 48 percent over prior year

• Record high 23,100 Fioptics high-speed internet and 19,100 entertainment net activations

CINCINNATI - February 20, 2014 - Cincinnati Bell Inc. (NYSE:CBB) today announced financial results for the full year and fourth quarter of 2013, highlighted by impressive full-year Adjusted EBITDA¹ totaling $407 million, after excluding CyrusOne, and the continued strong demand and growth in our strategic products.

“2013 was a transformational year for Cincinnati Bell on many levels,” said Ted Torbeck, president and chief executive officer. “Our year started with the successful IPO of CyrusOne and concluded with Fioptics, one of our key strategic products, generating more than $100 million in annual revenues.”

CONSOLIDATED RESULTS

On January 24, 2013, the company successfully completed the initial public offering (“IPO”) of CyrusOne, and its consolidated year-to-date results for 2013 include the results of that business up to the IPO date. Year-to-date revenue for 2013 was $1.3 billion, operating income was $164 million, and net income excluding special items² totaled $14 million. Excluding the data center segment results, Cincinnati Bell generated revenue of $1.2 billion, down 1 percent from the prior year and operating income of $181 million. Adjusted EBITDA excluding the data center business was $407 million, and includes a gain of $6 million associated with mark-to-market adjustments on compensation plans indexed to the company’s stock price.

Total revenue for the fourth quarter of 2013 was $308 million, down $10 million from the prior year after excluding the data center segment results. Operating income totaled $40 million, down $10 million from the prior year after excluding CyrusOne. The fourth quarter net loss of $28 million includes a $30 million loss on the early extinguishment of the 8.25 percent Senior Notes due 2017, repaid with proceeds from the issuance of a $540 million Tranche B term loan facility.

SEGMENT RESULTS

Wireline Segment

Revenue growth from strategic fiber based products continues to increasingly mitigate access line loss. Fioptics revenue totaled $29 million in the quarter, up 49 percent from the same period in 2012. Strategic revenue for business customers totaled $40 million, up 12 percent compared to the prior year. Adjusted EBITDA margin³ was 44 percent in the quarter, down from prior year due to the loss of higher margin access lines.

• Wireline revenue was $182 million for the quarter, flat compared to the fourth quarter of 2012. Full year Wireline revenue totaled $725 million, down 1 percent from a year ago.

• Operating income for the quarter was $43 million, down from $50 million in the same period of 2012, and full year 2013 operating income was $190 million, down 11 percent compared to 2012.

• Adjusted EBITDA was $80 million in the fourth quarter of 2013 and $331 million for the full year, down 5 percent and 4 percent, respectively, from the same periods in 2012.

• Fioptics entertainment subscribers increased by 4,500 in the quarter and 19,100 for the year. Fioptics entertainment subscribers totaled 74,200 at the end of the year, up 35 percent compared to the end of 2012.

• Fioptics internet subscribers now total 79,900, up more than 40 percent from a year ago. The company added 5,600 new Fioptics high-speed internet subscribers in the quarter, and 23,100 for the year.

• In 2013, we passed 71,000 units with Fioptics and achieved 29 percent penetration. The Fiopitcs suite of products is now available to 276,000 residential and business customers, approximately 35 percent of Greater Cincinnati.

IT Services and Hardware Segment

Strong demand for managed and professional services resulted in revenue of $33 million, up 20 percent over the prior year. Hardware sales totaled $53 million for the quarter.

• Revenue for the quarter was $86 million, down $1 million from the fourth quarter of 2012. Full year revenue was $344 million, up 9 percent compared to the prior year.

• Operating income totaled $2 million for the quarter and $9 million for the full year.

• Adjusted EBITDA for the quarter was $5 million, up $1 million from a year ago. Full year Adjusted EBITDA totaled $20 million, up 11 percent from the prior year.

Wireless Segment

We continue to manage our Wireless segment for cash flow and profitability as the business is challenged by revenue declines due to the loss of postpaid subscribers.

• Revenue was $47 million for the quarter and $202 million for 2013, a decrease of 17 percent for both periods compared to 2012.

• Wireless reported full year operating income of $18 million, including a $1 million operating loss for the fourth quarter of 2013.

• Adjusted EBITDA was $10 million in the fourth quarter of 2013 and $63 million for the full year, down from $17 million and $85 million, respectively, from the same periods in 2012.

• Wireless subscribers totaled 340,000 at the end of the year compared to 398,000 a year ago.

Investment in CyrusOne

Cincinnati Bell continues to effectively own 69 percent of CyrusOne, which is accounted for as an equity method investment. As of year-end, the company’s investment in CyrusOne was valued at approximately $1 billion.

• CyrusOne reported revenue of $72 million and Adjusted EBITDA of $40 million for the fourth quarter of 2013. For the full year, CyrusOne reported revenue of $264 million and Adjusted EBITDA of $139 million, in line with its established financial guidance range.

• CyrusOne provided 2014 financial guidance targets for Revenue and Adjusted EBITDA, indicating expected growth of 18 percent and 17 percent at the mid-point of the range.

“Looking ahead, we are very excited about the opportunity to turn Cincinnati Bell into a growing fiber based company capable of producing significant sustainable free cash flows,” Torbeck said. “The momentum created in 2013 and the continued demand for our strategic products gives us great confidence that we will grow Wireline revenue and generate positive free cash flow in 2014.”

2014 Outlook

Cincinnati Bell is providing the following guidance for 2014:

Category	2014 Guidance
Revenue	$1.2 billion
Adjusted EBITDA	$383 million*
*Plus or minus 2 percent

Conference Call/Webcast

Cincinnati Bell will host a conference call on February 20 at 10:00 a.m. (ET) to discuss its results for the fourth quarter and full year of 2013. 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) 863-7412. 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 Thursday March 6, 2014. 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 8619702. 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, transaction-related compensation, restructuring charges, (gain) loss on sale or disposal of assets, transaction costs, curtailment gain, asset impairments, components of pension and other retirement plan costs (including interest costs, asset returns, and amortization of actuarial gains and losses), and other special items. Adjusted EBITDA 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.

CyrusOne defines Adjusted EBITDA as net (loss) income as defined by U.S. GAAP before noncontrolling interests plus interest expense, income tax (benefit) expense, depreciation and amortization, non-cash compensation, transaction costs and transaction-related compensation, including acquisition pursuit costs, loss on sale of receivables to affiliate, restructuring costs, loss on extinguishment of debt, asset impairments, (gain) loss on sale of real estate improvements, and other special items. Other companies may not calculate Adjusted EBITDA in the same manner as CyrusOne. Accordingly, CyrusOne's Adjusted EBITDA as presented may not be comparable to others. Detailed reconciliations of CyrusOne's Adjusted EBITDA to the comparable GAAP financial measure are available in the Investor Relations section of www.cyrusone.com.

²Net 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.

³Adjusted 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 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. Net debt should not be considered as an alternative to comparable GAAP measures of liquidity and may not be comparable with the measure as defined by other companies.

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 CBTS, a wholly-owned subsidiary, 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 visitwww.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
				2013			2012			$			%		2013			2012			$			%
	Revenue			$	308.4		$	374.7		$	(66.3	)	(18	)%	$	1,256.9		$	1,473.9		$	(217.0	)	(15	)%
	Costs and expenses
		Cost of services and products		164.2			184.8			(20.6		)	(11	)%	643.0			694.6			(51.6		)	(7	)%
		Selling, general and administrative		59.4			69.9			(10.5		)	(15	)%	220.8			269.5			(48.7		)	(18	)%
		Depreciation and amortization		42.0			57.2			(15.2		)	(27	)%	169.6			217.4			(47.8		)	(22	)%
		Restructuring charges		2.9			0.4			2.5			n/m		13.7			3.4			10.3			n/m
		Transaction-related compensation		—			—			—			n/m		42.6			—			42.6			n/m
		Curtailment gain		—			—			—			n/m		(0.6		)	—			(0.6		)	n/m
		(Gain) loss on sale or disposal of assets		(0.2		)	(1.0		)	0.8			80	%	2.4			(1.6		)	4.0			n/m
		Asset impairments		—			0.9			(0.9		)	n/m		—			14.2			(14.2		)	n/m
		Transaction costs		—			4.6			(4.6		)	n/m		1.6			6.3			(4.7		)	(75	)%
			Operating income	40.1			57.9			(17.8		)	(31	)%	163.8			270.1			(106.3		)	(39	)%
	Interest expense			42.0			55.6			(13.6		)	(24	)%	182.0			218.9			(36.9		)	(17	)%
	Loss on extinguishment of debt			29.6			13.6			16.0			n/m		29.6			13.6			16.0			n/m
	Loss from CyrusOne equity method investment			2.6			—			2.6			n/m		10.7			—			10.7			n/m
	Other expense (income), net			0.1			0.1			—			0	%	(1.3		)	1.7			(3.0		)	n/m
	(Loss) income before income taxes			(34.2		)	(11.4		)	(22.8		)	n/m		(57.2		)	35.9			(93.1		)	n/m
	Income tax (benefit) expense			(6.1		)	(1.6		)	(4.5		)	n/m		(2.5		)	24.7			(27.2		)	n/m
	Net (loss) income			(28.1		)	(9.8		)	(18.3		)	n/m		(54.7		)	11.2			(65.9		)	n/m
	Preferred stock dividends			2.6			2.6			—			0	%	10.4			10.4			—			0	%
	Net (loss) income applicable to common shareowners			$	(30.7	)	$	(12.4	)	$	(18.3	)	n/m		$	(65.1	)	$	0.8		$	(65.9	)	n/m
	Basic and diluted (loss) earnings per common share			$	(0.15	)	$	(0.06	)						$	(0.32	)	$	0.00
	Weighted average common shares outstanding
		(in millions)
		- Basic		207.1			199.9								205.9			197.0
		- Diluted		207.1			199.9								205.9			204.7

Cincinnati Bell Inc.
Consolidated Statements of Operations
(Unaudited)
(Dollars in millions, except per share amounts)
				Three Months Ended
				December 31,			September 30,			Change
				2013			2013			$			%
	Revenue			$	308.4		$	310.8		$	(2.4	)	(1	)%
	Costs and expenses
		Cost of services and products		164.2			159.4			4.8			3	%
		Selling, general and administrative		59.4			53.6			5.8			11	%
		Depreciation and amortization		42.0			39.8			2.2			6	%
		Restructuring charges		2.9			—			2.9			n/m
		Gain on sale or disposal of assets		(0.2		)	(0.2		)	—			0	%
		Transaction costs		—			0.5			(0.5		)	n/m
			Operating income	40.1			57.7			(17.6		)	(31	)%
	Interest expense			42.0			46.7			(4.7		)	(10	)%
	Loss on extinguishment of debt			29.6			—			29.6			n/m
	Loss from CyrusOne equity method investment			2.6			1.5			1.1			73	%
	Other expense (income), net			0.1			(1.2		)	1.3			n/m
	(Loss) income before income taxes			(34.2		)	10.7			(44.9		)	n/m
	Income tax (benefit) expense			(6.1		)	1.4			(7.5		)	n/m
	Net (loss) income			(28.1		)	9.3			(37.4		)	n/m
	Preferred stock dividends			2.6			2.6			—			0	%
	Net (loss) income applicable to common shareowners			$	(30.7	)	$	6.7		$	(37.4	)	n/m
	Basic and diluted (loss) earnings per common share			$	(0.15	)	$	0.03
	Weighted average common shares outstanding
		(in millions)
		- Basic		207.1			207.0
		- Diluted		207.1			208.5

Cincinnati Bell Inc.
Income Statements by Segment
(Unaudited)
(Dollars in millions)
			Three Months Ended											Twelve Months Ended
			December 31,						Change					December 31,					Change
			2013			2012			$			%		2013		2012			$			%
	Wireline
	Revenue
		Voice - local service	$	54.7		$	61.7		$	(7.0	)	(11	)%	$	229.1	$	255.4		$	(26.3	)	(10	)%
		Data	80.9			77.5			3.4			4	%	317.8		306.9			10.9			4	%
		Long distance and VoIP	26.7			27.8			(1.1		)	(4	)%	107.2		113.9			(6.7		)	(6	)%
		Entertainment	15.8			9.8			6.0			61	%	55.2		35.4			19.8			56	%
		Other	4.0			5.3			(1.3		)	(25	)%	15.5		18.9			(3.4		)	(18	)%
		Total revenue	182.1			182.1			—			0	%	724.8		730.5			(5.7		)	(1	)%
	Operating costs and expenses
		Cost of services and products	73.8			72.3			1.5			2	%	287.2		283.8			3.4			1	%
		Selling, general and administrative	33.4			31.6			1.8			6	%	127.8		125.6			2.2			2	%
		Depreciation and amortization	28.4			27.1			1.3			5	%	112.2		106.0			6.2			6	%
		Other*	3.1			1.0			2.1			n/m		7.4		2.2			5.2			n/m
		Total operating costs and expenses	138.7			132.0			6.7			5	%	534.6		517.6			17.0			3	%
	Operating income		$	43.4		$	50.1		$	(6.7	)	(13	)%	$	190.2	$	212.9		$	(22.7	)	(11	)%
	Wireless
	Revenue
		Service	$	43.1		$	52.8		$	(9.7	)	(18	)%	$	184.9	$	224.5		$	(39.6	)	(18	)%
		Equipment	4.3			4.0			0.3			8	%	16.6		17.3			(0.7		)	(4	)%
		Total revenue	47.4			56.8			(9.4		)	(17	)%	201.5		241.8			(40.3		)	(17	)%
	Operating costs and expenses
		Cost of services and products	26.6			28.3			(1.7		)	(6	)%	98.1		113.0			(14.9		)	(13	)%
		Selling, general and administrative	11.0			11.4			(0.4		)	(4	)%	40.3		43.7			(3.4		)	(8	)%
		Depreciation and amortization	10.5			7.9			2.6			33	%	41.2		31.9			9.3			29	%
		Other*	0.2			1.5			(1.3		)	(87	)%	3.7		2.0			1.7			85	%
		Total operating costs and expenses	48.3			49.1			(0.8		)	(2	)%	183.3		190.6			(7.3		)	(4	)%
	Operating (loss) income		$	(0.9	)	$	7.7		$	(8.6	)	n/m		$	18.2	$	51.2		$	(33.0	)	(64	)%
	IT Services and Hardware
	Revenue
		Telecom and IT equipment distribution	$	53.4		$	59.6		$	(6.2	)	(10	)%	$	222.6	$	204.6		$	18.0		9	%
		Managed and professional services	32.7			27.3			5.4			20	%	121.5		111.1			10.4			9	%
		Total revenue	86.1			86.9			(0.8		)	(1	)%	344.1		315.7			28.4			9	%
	Operating costs and expenses
		Cost of services and products	70.3			72.4			(2.1		)	(3	)%	279.8		255.7			24.1			9	%
		Selling, general and administrative	10.9			10.3			0.6			6	%	44.6		42.3			2.3			5	%
		Depreciation and amortization	3.0			2.3			0.7			30	%	10.5		8.6			1.9			22	%
		Other*	—			(1.2		)	1.2			n/m		0.7		(1.2		)	1.9			n/m
		Total operating costs and expenses	84.2			83.8			0.4			0	%	335.6		305.4			30.2			10	%
	Operating income		$	1.9		$	3.1		$	(1.2	)	(39	)%	$	8.5	$	10.3		$	(1.8	)	(17	)%
	Data Center Colocation**
	Revenue		$	—		$	58.0		$	(58.0	)	n/m		$	15.6	$	221.3		$	(205.7	)	n/m
	Operating costs and expenses
		Cost of services	—			20.6			(20.6		)	n/m		4.8		75.7			(70.9		)	n/m
		Selling, general and administrative	—			9.8			(9.8		)	n/m		2.4		31.0			(28.6		)	n/m
		Depreciation and amortization	—			19.7			(19.7		)	n/m		5.2		70.6			(65.4		)	n/m
		Other*	—			—			—			n/m		—		13.6			(13.6		)	n/m
		Total operating costs and expenses	—			50.1			(50.1		)	n/m		12.4		190.9			(178.5		)	n/m
	Operating income		$	—		$	7.9		$	(7.9	)	n/m		$	3.2	$	30.4		$	(27.2	)	n/m
		*Other includes restructuring charges, curtailment gain, (gain) loss on sale or disposal of assets and asset impairments.
		**Results for 2013 only include CyrusOne's results through January 23, 2013. Effective January 24, 2013, the date of completion of CyrusOne's IPO, the Company owns 69% of CyrusOne as an equity method investment, and therefore does not consolidate the CyrusOne results of operations in the total company or segment results.

Cincinnati Bell Inc.
Income Statements by Segment
(Unaudited)
(Dollars in millions)
			Three Months Ended
			December 31,			September 30,			Change
			2013			2013			$			%
	Wireline
	Revenue
		Voice - local service	$	54.7		$	56.6		$	(1.9	)	(3	)%
		Data	80.9			79.6			1.3			2	%
		Long distance and VoIP	26.7			26.8			(0.1		)	0	%
		Entertainment	15.8			14.4			1.4			10	%
		Other	4.0			4.0			—			0	%
		Total revenue	182.1			181.4			0.7			0	%
	Operating costs and expenses
		Cost of services and products	73.8			72.4			1.4			2	%
		Selling, general and administrative	33.4			31.7			1.7			5	%
		Depreciation and amortization	28.4			29.7			(1.3		)	(4	)%
		Other*	3.1			(0.2		)	3.3			n/m
		Total operating costs and expenses	138.7			133.6			5.1			4	%
	Operating income		$	43.4		$	47.8		$	(4.4	)	(9	)%
	Wireless
	Revenue
		Service	$	43.1		$	45.0		$	(1.9	)	(4	)%
		Equipment	4.3			4.1			0.2			5	%
		Total revenue	47.4			49.1			(1.7		)	(3	)%
	Operating costs and expenses
		Cost of services and products	26.6			24.2			2.4			10	%
		Selling, general and administrative	11.0			10.5			0.5			5	%
		Depreciation and amortization	10.5			7.4			3.1			42	%
		Other*	0.2			—			0.2			n/m
		Total operating costs and expenses	48.3			42.1			6.2			15	%
	Operating (loss) income		$	(0.9	)	$	7.0		$	(7.9	)	n/m
	IT Services and Hardware
	Revenue
		Telecom and IT equipment distribution	$	53.4		$	56.2		$	(2.8	)	(5	)%
		Managed and professional services	32.7			31.3			1.4			4	%
		Total revenue	86.1			87.5			(1.4		)	(2	)%
	Operating costs and expenses
		Cost of services and products	70.3			69.4			0.9			1	%
		Selling, general and administrative	10.9			11.2			(0.3		)	(3	)%
		Depreciation and amortization	3.0			2.5			0.5			20	%
		Total operating costs and expenses	84.2			83.1			1.1			1	%
	Operating income		$	1.9		$	4.4		$	(2.5	)	(57	)%
		*Other includes restructuring charges and gain on sale or disposal of assets.

Cincinnati Bell Inc.
Segment Information
(Unaudited)
(Dollars in millions)
			Three Months Ended											Twelve Months Ended
			December 31,						Change					December 31,						Change
			2013			2012			$			%		2013			2012			$			%
	Revenue
		Wireline	$	182.1		$	182.1		$	—		0	%	$	724.8		$	730.5		$	(5.7	)	(1	)%
		Wireless	47.4			56.8			(9.4		)	(17	)%	201.5			241.8			(40.3		)	(17	)%
		IT Services and Hardware	86.1			86.9			(0.8		)	(1	)%	344.1			315.7			28.4			9	%
		Data Center Colocation**	—			58.0			(58.0		)	n/m		15.6			221.3			(205.7		)	n/m
		Eliminations	(7.2		)	(9.1		)	1.9			21	%	(29.1		)	(35.4		)	6.3			18	%
		Total revenue	$	308.4		$	374.7		$	(66.3	)	(18	)%	$	1,256.9		$	1,473.9		$	(217.0	)	(15	)%
	Cost of Services and Products
		Wireline	$	73.8		$	72.3		$	1.5		2	%	$	287.2		$	283.8		$	3.4		1	%
		Wireless	26.6			28.3			(1.7		)	(6	)%	98.1			113.0			(14.9		)	(13	)%
		IT Services and Hardware	70.3			72.4			(2.1		)	(3	)%	279.8			255.7			24.1			9	%
		Data Center Colocation**	—			20.6			(20.6		)	n/m		4.8			75.7			(70.9		)	n/m
		Eliminations	(6.5		)	(8.8		)	2.3			26	%	(26.9		)	(33.6		)	6.7			20	%
		Total cost of services and products	$	164.2		$	184.8		$	(20.6	)	(11	)%	$	643.0		$	694.6		$	(51.6	)	(7	)%
	Selling, General and Administrative
		Wireline	$	33.4		$	31.6		$	1.8		6	%	$	127.8		$	125.6		$	2.2		2	%
		Wireless	11.0			11.4			(0.4		)	(4	)%	40.3			43.7			(3.4		)	(8	)%
		IT Services and Hardware	10.9			10.3			0.6			6	%	44.6			42.3			2.3			5	%
		Data Center Colocation**	—			9.8			(9.8		)	n/m		2.4			31.0			(28.6		)	n/m
		Corporate and eliminations	4.1			6.8			(2.7		)	(40	)%	5.7			26.9			(21.2		)	(79	)%
		Total selling, general and administrative	$	59.4		$	69.9		$	(10.5	)	(15	)%	$	220.8		$	269.5		$	(48.7	)	(18	)%
	Depreciation and Amortization
		Wireline	$	28.4		$	27.1		$	1.3		5	%	$	112.2		$	106.0		$	6.2		6	%
		Wireless	10.5			7.9			2.6			33	%	41.2			31.9			9.3			29	%
		IT Services and Hardware	3.0			2.3			0.7			30	%	10.5			8.6			1.9			22	%
		Data Center Colocation**	—			19.7			(19.7		)	n/m		5.2			70.6			(65.4		)	n/m
		Corporate	0.1			0.2			(0.1		)	(50	)%	0.5			0.3			0.2			67	%
		Total depreciation and amortization	$	42.0		$	57.2		$	(15.2	)	(27	)%	$	169.6		$	217.4		$	(47.8	)	(22	)%
	Other*
		Wireline	$	3.1		$	1.0		$	2.1		n/m		$	7.4		$	2.2		$	5.2		n/m
		Wireless	0.2			1.5			(1.3		)	(87	)%	3.7			2.0			1.7			85	%
		IT Services and Hardware	—			(1.2		)	1.2			n/m		0.7			(1.2		)	1.9			n/m
		Data Center Colocation**	—			—			—			n/m		—			13.6			(13.6		)	n/m
		Corporate	(0.6		)	3.6			(4.2		)	n/m		47.9			5.7			42.2			n/m
		Total other	$	2.7		$	4.9		$	(2.2	)	(45	)%	$	59.7		$	22.3		$	37.4		n/m
	Operating Income (Loss)
		Wireline	$	43.4		$	50.1		$	(6.7	)	(13	)%	$	190.2		$	212.9		$	(22.7	)	(11	)%
		Wireless	(0.9		)	7.7			(8.6		)	n/m		18.2			51.2			(33.0		)	(64	)%
		IT Services and Hardware	1.9			3.1			(1.2		)	(39	)%	8.5			10.3			(1.8		)	(17	)%
		Data Center Colocation**	—			7.9			(7.9		)	n/m		3.2			30.4			(27.2		)	n/m
		Corporate	(4.3		)	(10.9		)	6.6			61	%	(56.3		)	(34.7		)	(21.6		)	(62	)%
		Total operating income	$	40.1		$	57.9		$	(17.8	)	(31	)%	$	163.8		$	270.1		$	(106.3	)	(39	)%
		*Other includes restructuring charges, transaction-related compensation, curtailment gain, (gain) loss on sale or disposal of assets, asset impairments and transaction costs.
		**Results for 2013 only include CyrusOne's results through January 23, 2013. Effective January 24, 2013, the date of completion of CyrusOne's IPO, the Company owns 69% of CyrusOne as an equity method investment, and therefore does not consolidate the CyrusOne results of operations in the total company or segment results.

Cincinnati Bell Inc.
Segment Information
(Unaudited)
(Dollars in millions)
			Three Months Ended
			December 31,			September 30,			Change
			2013			2013			$			%
	Revenue
		Wireline	$	182.1		$	181.4		$	0.7		0	%
		Wireless	47.4			49.1			(1.7		)	(3	)%
		IT Services and Hardware	86.1			87.5			(1.4		)	(2	)%
		Eliminations	(7.2		)	(7.2		)	—			0	%
		Total revenue	$	308.4		$	310.8		$	(2.4	)	(1	)%
	Cost of Services and Products
		Wireline	$	73.8		$	72.4		$	1.4		2	%
		Wireless	26.6			24.2			2.4			10	%
		IT Services and Hardware	70.3			69.4			0.9			1	%
		Eliminations	(6.5		)	(6.6		)	0.1			2	%
		Total cost of services and products	$	164.2		$	159.4		$	4.8		3	%
	Selling, General and Administrative
		Wireline	$	33.4		$	31.7		$	1.7		5	%
		Wireless	11.0			10.5			0.5			5	%
		IT Services and Hardware	10.9			11.2			(0.3		)	(3	)%
		Corporate and eliminations	4.1			0.2			3.9			n/m
		Total selling, general and administrative	$	59.4		$	53.6		$	5.8		11	%
	Depreciation and Amortization
		Wireline	$	28.4		$	29.7		$	(1.3	)	(4	)%
		Wireless	10.5			7.4			3.1			42	%
		IT Services and Hardware	3.0			2.5			0.5			20	%
		Corporate	0.1			0.2			(0.1		)	(50	)%
		Total depreciation and amortization	$	42.0		$	39.8		$	2.2		6	%
	Other*
		Wireline	$	3.1		$	(0.2	)	$	3.3		n/m
		Wireless	0.2			—			0.2			n/m
		IT Services and Hardware	—			—			—			n/m
		Corporate	(0.6		)	0.5			(1.1		)	n/m
		Total other	$	2.7		$	0.3		$	2.4		n/m
	Operating Income (Loss)
		Wireline	$	43.4		$	47.8		$	(4.4	)	(9	)%
		Wireless	(0.9		)	7.0			(7.9		)	n/m
		IT Services and Hardware	1.9			4.4			(2.5		)	(57	)%
		Corporate	(4.3		)	(1.5		)	(2.8		)	n/m
		Total operating income	$	40.1		$	57.7		$	(17.6	)	(31	)%
		*Other includes restructuring charges, gain on sale or disposal of assets and transaction costs.

Cincinnati Bell Inc.
Segment Metric Information
(Unaudited)
(In thousands)
			December 31,	September 30,	December 31,
			2013	2013	2012
	Local access lines		530.7	541.2	573.9
	Long distance lines		394.1	400.8	417.9
	High-speed internet subscribers
		DSL subscribers	188.5	191.3	202.6
		Fioptics subscribers	79.9	74.3	56.8
			268.4	265.6	259.4
	Fioptics units passed		276.0	258.0	205.0
	Fioptics entertainment subscribers		74.2	69.7	55.1
	Wireless
		Postpaid wireless subscribers	197.4	209.4	251.3
		Prepaid wireless subscribers	142.3	145.8	146.5
			339.7	355.2	397.8

Cincinnati Bell Inc.
Local Access Line Detail
(Unaudited)
(In thousands)
		2011				2012				2013
		1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q
	Local Access Lines
	In-Territory:
	Primary Residential	321.8	313.8	304.8	296.7	288.9	281.7	274.3	266.4	259.1	253.1	247.7	242.2
	Secondary Residential	18.3	16.3	15.6	14.9	14.2	13.6	13.1	12.5	12.0	11.4	10.9	10.5
	Business/ Other	250.7	248.7	244.4	240.8	238.5	237.5	234.4	232.1	229.7	228.2	226.7	223.3
	Total In-Territory	590.8	578.8	564.8	552.4	541.6	532.8	521.8	511.0	500.8	492.7	485.3	476.0
	Out-of-Territory:
	Primary Residential	30.4	29.3	27.8	26.7	25.2	24.3	23.3	22.4	20.8	19.8	18.9	18.2
	Secondary Residential	0.9	0.9	0.9	0.8	0.8	0.8	0.7	0.7	0.6	0.6	0.6	0.5
	Business/ Other	41.5	41.6	41.8	41.4	41.0	40.6	40.0	39.8	39.2	36.9	36.4	36.0
	Total Out-of-Territory	72.8	71.8	70.5	68.9	67.0	65.7	64.0	62.9	60.6	57.3	55.9	54.7
	Total Access Lines	663.6	650.6	635.3	621.3	608.6	598.5	585.8	573.9	561.4	550.0	541.2	530.7

Cincinnati Bell Inc.
Net Debt and Common Shares Outstanding
(Unaudited)
(Dollars and shares in millions)
		December 31,			September 30,			December 31,
		2013			2013			2012
Corporate Credit Agreement***		$	40.0		$	—		$	—
Receivables Facility***		106.2			—			52.0
8 1/4% Senior Notes due 2017***		—			500.0			500.0
8 3/4% Senior Subordinated Notes due 2018		625.0			625.0			625.0
Corporate Credit Agreement - Tranche B Term Loan		538.6			540.0			—
8 3/8% Senior Notes due 2020		683.9			683.9			683.9
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			134.5			134.5
Capital leases and other debt*		103.3			104.1			136.5
Net unamortized discount		(6.3		)	(10.4		)	(7.5		)
	Total debt	2,265.2			2,617.1			2,689.4
Less: Cash and cash equivalents***		(4.6		)	(413.7		)	(23.6		)
	Net debt (as defined by the company)	$	2,260.6		$	2,203.4		$	2,665.8
Credit facility availability:
	Corporate	160.0			200.0			200.0
	CyrusOne**	—			—			225.0
		$	160.0		$	200.0		$	425.0
Common shares outstanding		208.2			208.0			202.5
*On January 24, 2013, CyrusOne completed its IPO. As of this date, Cincinnati Bell Inc. no longer has any obligations related to CyrusOne's 6 3/8% Senior Notes due 2022 or capital lease obligations.
** On January 24, 2013, CyrusOne completed its IPO. As of this date, Cincinnati Bell Inc. no longer has access to the CyrusOne credit facility.
*** On October 15, 2013, the company used the proceeds from the Tranche B Term Loan to fully repay the 8 1/4% Senior Notes due 2017. In September 2013, prior to the October 15, 2013 call date, the proceeds temporarily increased cash and were used to temporarily pay down the Corporate Credit Agreement and Receivables Facility.

Cincinnati Bell Inc.
Reconciliation of Net (Loss) Income (GAAP) to Adjusted EBITDA (Non-GAAP)
(Unaudited)
(Dollars in millions)
			Three Months Ended December 31, 2013
			Wireline			Wireless			IT Services & Hardware			Data Center Colocation*			Corporate			Total Company
	Net Loss (GAAP)																	$	(28.1	)
	Add:
		Income tax benefit																(6.1		)
		Interest expense																42.0
		Loss on extinguishment of debt																29.6
		Loss from CyrusOne equity method investment																2.6
		Other expense, net																0.1
	Operating Income (GAAP)		$	43.4		$	(0.9	)	$	1.9		$	—		$	(4.3	)	$	40.1
	Add:
		Depreciation and amortization	28.4			10.5			3.0			—			0.1			42.0
		Restructuring charges (reversals)	3.3			0.2			—			—			(0.6		)	2.9
		(Gain) loss on sale or disposal of assets	(0.2		)	—			—			—			—			(0.2		)
		Pension and other retirement plan expenses	4.8			—			—			—			0.4			5.2
	Adjusted EBITDA (Non-GAAP)		$	79.7		$	9.8		$	4.9		$	—		$	(4.4	)	$	90.0
	Adjusted EBITDA Margin		44		%	21		%	6		%	—			—			29		%
			Three Months Ended September 30, 2013
			Wireline			Wireless			IT Services & Hardware			Data Center Colocation*			Corporate			Total Company
	Net Income (GAAP)																	$	9.3
	Add:
		Income tax expense																1.4
		Interest expense																46.7
		Loss from CyrusOne equity method investment																1.5
		Other income, net																(1.2		)
	Operating Income (GAAP)		$	47.8		$	7.0		$	4.4		$	—		$	(1.5	)	$	57.7
	Add:
		Depreciation and amortization	29.7			7.4			2.5			—			0.2			39.8
		Gain on sale or disposal of assets	(0.2		)	—			—			—			—			(0.2		)
		Transaction costs	—			—			—			—			0.5			0.5
		Pension and other retirement plan expenses	5.2			—			—			—			0.3			5.5
	Adjusted EBITDA (Non-GAAP)		$	82.5		$	14.4		$	6.9		$	—		$	(0.5	)	$	103.3
	Adjusted EBITDA Margin		45		%	29		%	8		%	—			—			33		%
	Sequential dollar change in Adjusted EBITDA		$	(2.8	)	$	(4.6	)	$	(2.0	)	$	—		$	(3.9	)	$	(13.3	)
	Sequential percentage change in Adjusted EBITDA		(3		)%	(32		)%	(29		)%	n/m			n/m			(13		)%
			Three Months Ended December 31, 2012
			Wireline			Wireless			IT Services & Hardware			Data Center Colocation			Corporate			Total Company
	Net Loss (GAAP)																	$	(9.8	)
	Add:
		Income tax benefit																(1.6		)
		Interest expense																55.6
		Loss on extinguisment of debt																13.6
		Other expense, net																0.1
	Operating Income (GAAP)		$	50.1		$	7.7		$	3.1		$	7.9		$	(10.9	)	$	57.9
	Add:
		Depreciation and amortization	27.1			7.9			2.3			19.7			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
		Asset impairments	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		$	4.2		$	27.8		$	(6.8	)	$	126.3
	Adjusted EBITDA Margin		46		%	30		%	5		%	48		%	—			34		%
	Year-over-year dollar change in Adjusted EBITDA		$	(4.3	)	$	(7.3	)	$	0.7		$	(27.8	)	$	2.4		$	(36.3	)
	Year-over-year percentage change in Adjusted EBITDA		(5		)%	(43		)%	17		%	n/m			35		%	(29		)%
*Effective January 24, 2013, the date of completion of CyrusOne's IPO, the Company owns 69% of CyrusOne as an equity method investment, and therefore does not consolidate the CyrusOne results of operations in the total company or segment results.

Cincinnati Bell Inc.
Reconciliation of Net (Loss) Income (GAAP) to Adjusted EBITDA (Non-GAAP)
(Unaudited)
(Dollars in millions)
			Twelve Months Ended December 31, 2013
			Wireline			Wireless			IT Services & Hardware			Data Center Colocation*			Corporate			Total Company
	Net Loss (GAAP)																	$	(54.7	)
	Add:
		Income tax benefit																(2.5		)
		Interest expense																182.0
		Loss on extinguishment of debt																29.6
		Loss from CyrusOne equity method investment																10.7
		Other income, net																(1.3		)
	Operating Income (GAAP)		$	190.2		$	18.2		$	8.5		$	3.2		$	(56.3	)	$	163.8
	Add:
		Depreciation and amortization	112.2			41.2			10.5			5.2			0.5			169.6
		Transaction-related compensation	—			—			—			—			42.6			42.6
		Restructuring charges	9.1			0.2			0.7			—			3.7			13.7
		(Gain) loss on sale or disposal of assets	(1.1		)	3.5			—			—			—			2.4
		Transaction costs	—			—			—			—			1.6			1.6
		Curtailment gain	(0.6		)	—			—			—			—			(0.6		)
		Pension and other retirement plan expenses	21.1			—			—			—			1.4			22.5
	Adjusted EBITDA (Non-GAAP)		$	330.9		$	63.1		$	19.7		$	8.4		$	(6.5	)	$	415.6
	Adjusted EBITDA Margin		46		%	31		%	6		%	54		%	—			33		%
			Twelve Months Ended December 31, 2012
			Wireline			Wireless			IT Services & Hardware			Data Center Colocation			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		$	10.3		$	30.4		$	(34.7	)	$	270.1
	Add:
		Depreciation and amortization	106.0			31.9			8.6			70.6			0.3			217.4
		Restructuring charges (reversals)	3.5			1.6			(1.2		)	0.5			(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
		Asset impairments	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		$	17.7		$	115.0		$	(27.3	)	$	534.6
	Adjusted EBITDA Margin		47		%	35		%	6		%	52		%	—			36		%
	Year-over-year dollar change in Adjusted EBITDA		$	(13.2	)	$	(22.0	)	$	2.0		$	(106.6	)	$	20.8		$	(119.0	)
	Year-over-year percentage change in Adjusted EBITDA		(4		)%	(26		)%	11		%	n/m			76		%	(22		)%
*Results for 2013 only include CyrusOne's results through January 23, 2013. Effective January 24, 2013, the date of completion of CyrusOne's IPO, the Company owns 69% of CyrusOne as an equity method investment, and therefore does not consolidate the CyrusOne results of operations in the total company or segment results.

Cincinnati Bell Inc.
Consolidated Statements of Cash Flows
(Unaudited)
(Dollars in millions)
			Three Months Ended						Twelve Months Ended
			December 31,						December 31,
			2013			2012			2013			2012
	Cash provided by operating activities		$	19.0		$	57.7		$	78.8		$	212.7
		Capital expenditures	(54.9		)	(124.3		)	(196.9		)	(367.2		)
		Dividends received from CyrusOne	7.1			—			21.3			—
		Proceeds from sale of assets	0.2			1.0			2.0			1.6
		Increase in restricted cash	—			—			—			(11.1		)
		Release of restricted cash	—			4.2			0.4			4.9
		Cash divested from deconsolidation of CyrusOne	—			—			(12.2		)	—
	Cash used in investing activities		(47.6		)	(119.1		)	(185.4		)	(371.8		)
		Proceeds from issuance of long-term debt	—			525.0			536.0			525.0
		Increase in corporate credit and receivables facilities, net	146.2			8.0			94.2			52.0
		Repayment of debt	(524.1		)	(431.1		)	(530.8		)	(442.4		)
		Debt issuance costs	(0.3		)	(20.9		)	(6.7		)	(20.9		)
		Dividends paid on preferred stock	(2.6		)	(2.6		)	(10.4		)	(10.4		)
		Common stock issuance costs	—			(5.7		)	—			(5.7		)
		Common stock repurchase	—			—			—			(0.3		)
		Proceeds from exercise of options and warrants	0.3			4.0			7.1			12.1
		Other, net	—			0.6			(1.8		)	(0.4		)
	Cash (used in) provided by financing activities		(380.5		)	77.3			87.6			109.0
	Net (decrease) increase in cash and cash equivalents		(409.1		)	15.9			(19.0		)	(50.1		)
	Cash and cash equivalents at beginning of period		413.7			7.7			23.6			73.7
	Cash and cash equivalents at end of period		$	4.6		$	23.6		$	4.6		$	23.6
	Reconciliation of GAAP Cash Flow to
		Free Cash Flow (as defined by the company)
	Net (decrease) increase in cash and cash equivalents		$	(409.1	)	$	15.9		$	(19.0	)	$	(50.1	)
	Less adjustments:
		Proceeds from issuance of long-term debt	—			(525.0		)	(536.0		)	(525.0		)
		Increase in corporate credit and receivables facilities, net	(146.2		)	(8.0		)	(94.2		)	(52.0		)
		Cash divested from deconsolidation of CyrusOne	—			—			12.2			—
		Repayment of debt	524.1			431.1			530.8			442.4
		Debt issuance costs	0.3			20.9			6.7			20.9
		Transaction-related compensation	—			—			42.6			—
		Common stock repurchase	—			—			—			0.3
		Proceeds from sale of assets, net of expenses	—			(1.0		)	—			(1.6		)
		Transaction costs	—			9.3			1.6			11.0
		Free cash flow (as defined by the company)	$	(30.9	)	$	(56.8	)	$	(55.3	)	$	(154.1	)
		Less: CyrusOne's free cash flows*	—			(55.4		)	(3.3		)	(162.2		)
		Free cash flow excluding CyrusOne	$	(30.9	)	$	(1.4	)	$	(52.0	)	$	8.1
	Income tax payments		$	—		$	0.4		$	2.8		$	0.1
*CyrusOne's free cash flows for the period ending January 23, 2013 were comprised of cash generated from operating activities of $4.0 million and cash used in investing activities of $7.3 million.

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, 2012	$	(56.8	)
	Decrease in Adjusted EBITDA	(36.3		)
	Decrease in capital expenditures	69.4
	Decrease in interest payments	9.7
	Increase in pension and postretirement payments	(1.3		)
	Change in working capital and other	(15.6		)
	Free Cash Flow for the three months ended December 31, 2013	$	(30.9	)
	Free Cash Flow for the twelve months ended December 31, 2012	$	(154.1	)
	Decrease in Adjusted EBITDA	(119.0		)
	Decrease in capital expenditures	170.3
	Decrease in interest payments	38.4
	Increase in pension and postretirement payments	(16.0		)
	Change in working capital and other	25.1
	Free Cash Flow for the twelve months ended December 31, 2013	$	(55.3	)
	Less: CyrusOne's free cash flows for the period ended January 23, 2013	(3.3		)
	Free Cash Flow excluding CyrusOne for the twelve months ended December 31, 2013	$	(52.0	)

Cincinnati Bell Inc.
Capital Expenditures
(Unaudited)
(Dollars in millions)
	Three Months Ended
	Dec. 31, 2013		Sep. 30, 2013		Jun. 30, 2013		Mar. 31, 2013		Dec. 31, 2012
Wireline	$	48.3	$	41.2	$	39.3	$	33.8	$	36.7
Wireless	3.6		2.2		2.0		8.2		3.4
IT Services and Hardware	3.0		2.7		3.7		1.2		2.4
Data Center Colocation*	—		—		—		7.7		81.8
Total capital expenditures	$	54.9	$	46.1	$	45.0	$	50.9	$	124.3
*Results for 2013 only include CyrusOne's results through January 23, 2013. Effective January 24, 2013, the date of completion of CyrusOne's IPO, the Company owns 69% of CyrusOne as an equity method investment, and therefore does not consolidate the CyrusOne results of operations in the total company or segment results.

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, 2013
				December 31, 2013							Before Special Items
				(GAAP)			Special Items				(Non-GAAP)
	Revenue			$	308.4		$	—			$	308.4
	Costs and expenses
		Cost of services and products		164.2			—				164.2
		Selling, general and administrative		59.4			—				59.4
		Depreciation and amortization		42.0			—				42.0
		Restructuring charges		2.9			(2.9		)	[A]	—
		Gain on sale or disposal of assets		(0.2		)	0.2			[B]	—
			Operating income	40.1			2.7				42.8
	Interest expense			42.0			—				42.0
	Loss on extinguishment of debt			29.6			(29.6		)	[C]	—
	Loss from CyrusOne equity method investment			2.6			—				2.6
	Other expense, net			0.1			—				0.1
	(Loss) income before income taxes			(34.2		)	32.3				(1.9		)
	Income tax (benefit) expense			(6.1		)	12.9				6.8
	Net loss			(28.1		)	19.4				(8.7		)
	Preferred stock dividends			2.6			—				2.6
	Net loss applicable to common shareowners			$	(30.7	)	$	19.4			$	(11.3	)
	Weighted average diluted common shares			207.1			209.0			[D]	207.1
	Diluted loss per common share*			$	(0.15	)	$	0.09			$	(0.05	)
	Normalized results have been adjusted for the following (pretax adjustments are tax effected at 40%):
A	Restructuring charges consist of severance and lease abandonment.
B	Gain on sale of wireline equipment.
C	Loss on extinguishment of 8 1/4% Senior Notes due 2017 repaid in full in October 2013.
D	Dilutive effect of common stock equivalents based on net income excluding special items.
*	Diluted loss per common share has been calculated independently for the results above. Therefore, the sum of the per share amounts will not necessarily equal the per share results for the Before Special Items (Non-GAAP) results.

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]	—
		Asset impairments		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
	(Loss) income before income taxes			(11.4		)	18.7				7.3
	Income tax expense (benefit)			(1.6		)	7.5				5.9
	Net (loss) income			(9.8		)	11.2				1.4
	Preferred stock dividends			2.6			—				2.6
	Net loss applicable to common shareowners			$	(12.4	)	$	11.2			$	(1.2	)
	Weighted average diluted common shares			199.9			209.8			[G]	199.9
	Diluted 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)
											Twelve
				Twelve							Months Ended
				Months Ended							December 31, 2013
				December 31, 2013							Before Special Items
				(GAAP)			Special Items				(Non-GAAP)
	Revenue			$	1,256.9		$	—			$	1,256.9
	Costs and expenses
		Cost of services and products		643.0			—				643.0
		Selling, general and administrative		220.8			—				220.8
		Depreciation and amortization		169.6			(8.5		)	[A]	161.1
		Restructuring charges		13.7			(13.7		)	[B]	—
		Transaction-related compensation		42.6			(42.6		)	[C]	—
		Curtailment gain		(0.6		)	0.6			[D]	—
		Loss on sale or disposal of assets		2.4			(2.4		)	[E]	—
		Transaction costs		1.6			(1.6		)	[F]	—
			Operating income	163.8			68.2				232.0
	Interest expense			182.0			0.3			[G]	182.3
	Loss on extinguishment of debt			29.6			(29.6		)	[H]	—
	Loss from CyrusOne equity method investment			10.7			—				10.7
	Other income, net			(1.3		)	1.1			[G]	(0.2		)
	(Loss) income before income taxes			(57.2		)	96.4				39.2
	Income tax (benefit) expense			(2.5		)	27.9			[I]	25.4
	Net (loss) income			(54.7		)	68.5				13.8
	Preferred stock dividends			10.4			—				10.4
	Net (loss) income applicable to common shareowners			$	(65.1	)	$	68.5			$	3.4
	Weighted average diluted common shares			205.9			208.4			[J]	208.4
	Diluted (loss) earnings per common share*			$	(0.32	)	$	0.33			$	0.02
	Normalized results have been adjusted for the following (pretax adjustments are tax effected at 40%):
A	Increased depreciation due to one-time charge associated with a change in estimated useful lives assigned to wireless network software.
B	Restructuring charges consist of lease abandonments, severance and the termination of a distributor agreement.
C	Transaction-related compensation represents incentives related to the completion of CyrusOne's initial public offering.
D	Curtailment gain resulted from elimination of future pension service credits in the management pension plan.
E	Loss on sale or disposal of wireline and wireless network equipment.
F	Transaction costs relate to expenses incurred for exploring strategic alternatives for our Wireless business and legal and consulting costs associated with CyrusOne.
G	Use tax refund from assets previously disposed.
H	Loss on extinguishment of 8 1/4% Senior Notes due 2017 repaid in full in October 2013.
I	Tax effect of above adjustments at 40%, partially offset by a gross valuation allowance provision of $10.7 million for Texas margin tax credits.
J	Dilutive effect of common stock equivalents based on net income excluding special items.
*	Diluted (loss) earnings per common share have been calculated independently for the results above. Therefore, the sum of the per share amounts will not necessarily equal the per share results for the Before Special Items (Non-GAAP) results.

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]	—
		Asset impairments		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.
Operating Income excluding CyrusOne
(Unaudited)
(Dollars in millions)
				For the three months ended December 31, 2012
				Cincinnati Bell			Data Center							Cincinnati Bell
				including CyrusOne			Colocation			Other				excluding CyrusOne
	Revenue			$	374.7		$	(58.0	)	$	1.7		[A]	$	318.4
	Costs and expenses
		Cost of services and products		184.8			(20.6		)	1.7			[A]	165.9
		Selling, general and administrative		69.9			(9.8		)	—				60.1
		Depreciation and amortization		57.2			(19.7		)	—				37.5
		Restructuring charges		0.4			—			—				0.4
		Gain on sale or disposal of assets		(1.0		)	—			—				(1.0		)
		Asset impairments		0.9			—			—				0.9
		Transaction costs		4.6			—			—				4.6
			Operating income	$	57.9		$	(7.9	)	$	—			$	50.0
				For the twelve months ended December 31, 2013
				Cincinnati Bell			Data Center							Cincinnati Bell
				including CyrusOne			Colocation			Other				excluding CyrusOne
	Revenue			$	1,256.9		$	(15.6	)	$	0.4		[A]	$	1,241.7
	Costs and expenses
		Cost of services and products		643.0			(4.8		)	0.4			[A]	638.6
		Selling, general and administrative		220.8			(2.4		)	—				218.4
		Depreciation and amortization		169.6			(5.2		)	—				164.4
		Restructuring charges		13.7			—			—				13.7
		Transaction-related compensation		42.6			—			(20.0		)	[B]	22.6
		Curtailment gain		(0.6		)	—			—				(0.6		)
		Loss on sale or disposal of assets, net		2.4			—			—				2.4
		Transaction costs		1.6			—			(0.4		)	[C]	1.2
			Operating income	$	163.8		$	(3.2	)	$	20.4			$	181.0
				For the twelve months ended December 31, 2012
				Cincinnati Bell			Data Center							Cincinnati Bell
				including CyrusOne			Colocation			Other				excluding CyrusOne
	Revenue			$	1,473.9		$	(221.3	)	$	6.4		[A]	$	1,259.0
	Costs and expenses
		Cost of services and products		694.6			(75.7		)	6.4			[A]	625.3
		Selling, general and administrative		269.5			(31.0		)	—				238.5
		Depreciation and amortization		217.4			(70.6		)	—				146.8
		Restructuring charges		3.4			(0.5		)	—				2.9
		Gain on sale or disposal of assets		(1.6		)	0.2			—				(1.4		)
		Asset impairments		14.2			(13.3		)	—				0.9
		Transaction costs		6.3			—			—				6.3
			Operating income	$	270.1		$	(30.4	)	$	—			$	239.7
A		Represents intersegment transactions.
B		Transaction-related compensation paid to CyrusOne related to CyrusOne employees.
C		Transaction costs related to the CyrusOne IPO.

Cincinnati Bell Inc.
Reconciliation of Operating Income (GAAP) Guidance to Adjusted EBITDA (Non-GAAP) Guidance
(Unaudited)
(Dollars in millions)
	2014 Operating Income (GAAP) Guidance Range	$	168
	Add:
	Depreciation and amortization	195
	Pension and other retirement plan expenses	20
	2014 Adjusted EBITDA (Non-GAAP) Guidance Range	$	383	*
	* 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 2013 Results February 20, 2014

2 Today’s Agenda 2 Highlights & Strategic Investments Ted Torbeck, President & Chief Executive Officer Segment Results & Financial Overview Leigh Fox, 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 President & Chief Executive Officer

6 306 359 219 236 495 448 239 199 2012 2013 80 97 63 57 119 107 56 47 Q4 2012 Q4 2013 Year-to-Date Comparison* 6 Revenue Highlights  Revenues continue to stabilize as growth in strategic revenues mitigates the decline from Wireless and other legacy products  Integration revenues remain vital to sustaining customer relationships and the continued growth of strategic revenue $1,259 $1,242 $318 $308 * Revenue results are presented net of intercompany and exclude the results of CyrusOne ($ in millions) Q4 Comparison*

7 7 Full Year Highlights Achieved full year revenue guidance of $1.2 billion  Strategic revenues totaled $359 million, up 17% year over year  Growth in strategic revenue offset legacy revenue decline by more than 10 percent Strong Adjusted EBITDA of $407 million  In-line with revised guidance range Successful IPO of CyrusOne in January 2013  Retained 69% ownership of economic benefits  Current market value of investment is approximately $1 billion Fioptics revenue exceeds $100 million, up 48 percent over prior year  Record high Fioptics net activations – 19,100 entertainment and 23,100 high-speed internet subscribers  Fioptics now passes 276,000 addresses, approximately 35 percent of Greater Cincinnati

8 69 104 217 189 2012 2013 Strategic Legacy 8 Consumer Market Growth Consumer Revenues*  Fioptics consumer revenue was $94 million for 2013, up 49% from prior year  Fioptics now passes 276K addresses, approximately 35% of Greater Cincinnati  430K addresses able to upgrade internet speeds to 10 meg or more, up from 340K in the prior year  High-speed internet subs totaled 268K, up 9K from prior year ‒ Approximately 39% of consumer subscribers have speeds of 10 meg or more $286 $293 ($ in millions) * Excludes revenue from wireless and integration services

9  Fioptics subscribers increased by 35% compared to 2012 ‒ 74K entertainment subs; 4,500 net activations in the quarter ‒ 80K internet subs; 5,600 net activations in the quarter  Total Fioptics penetration remained strong at 29% despite increased construction  Fioptics consumer monthly ARPU improved to $138, up from $135 in Q4 2012  Entertainment churn was 2.5% for the quarter ‒ Single-family churn was 2.2% for Q4 2013 ‒ Apartment churn was 4.5% for Q4 2013 9 Fioptics Highlights (in thousands) 55 74 57 80 41 53 Q4 2012 Q4 2013 Total Fioptics Subscribers Ent. Subs Internet Subs Voice Subs

10 237 255 278 259 2012 2013 Strategic Legacy 10 Business and Carrier Markets Revenue Strategic and Legacy Revenue*  Strategic revenue increased 8% over prior year ‒ Business revenue totaled $112 million (including $7 million of Fioptics revenue), up 6% ‒ Carrier revenue totaled $32 million, up 17% ‒ Managed & Professional Services totaled $111 million, up 7%  Expanded fiber footprint in 2013 ‒ Lit 100 MTU’s with fiber in 2013; now have 500 MTU’s and 3,200 SFU’s lit with fiber ‒ Built 900 fiber route miles in 2013, fiber network now spanning approximately 5,700 route miles ‒ Provide cell-site backhaul over fiber to 550 towers; currently provide service to more than 70% of the 1,100 towers in our operating territory * Excludes revenue from wireless, hardware sales and other integration services $515 $514 ($ in millions)

Leigh Fox Chief Financial Officer

12 84 80 17 10 4 5 (7) (5) Q4 2012 Q4 2013 182 182 57 47 87 86 (8) (7) Q4 2012 Q4 2013 12 Fourth Quarter Financial Summary (excluding CyrusOne) Revenue* Adjusted EBITDA  Total revenue of $308 million for Q4 2013, down 3% from prior year - Wireline revenue was flat compared to prior year as growth in strategic revenue offset legacy declines - Wireless revenue was down 17% due to continued postpaid subscriber loss  Adjusted EBITDA of $90 million for Q4 2013, down 9% from prior year; primarily due to Wireless revenue declines  Net loss for Q4 2013 totaled $28 million primarily due to a $30 million loss on extinguishment of debt ($ in millions) Wireline Wireless IT Services & Hardware Corporate Eliminations $318 $308 $98 $90 * Revenue results are presented net of intercompany

13 Quarterly Strategic Revenue Growth IT Services & Hardware Wireline - Business Wireline - Consumer 20 23 24 27 30 34 34 35 37 37 26 25 28 29 30 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 ($ in millions) $80 $82 $87 $93 $97 * Revenue results are presented net of intercompany 13

14 $69 $110 $80 Revenue EBITDA Q4 2013 $54 $124 $84 Revenue EBITDA Q4 2012  Strategic revenue growth in Q4 2013 offset decline from legacy products ‒ Revenue from Fioptics for Q4 2013 totaled $29 million, 49% from Q4 2012 ‒ Strategic revenue from business customers totaled $40 million in Q4 2013, up 12% from Q4 2012  Adjusted EBITDA Margin for Q4 2013 remained solid at 44%  Access line loss was 7.5%, slightly improved from the prior year 14 ($ in millions) Wireline Revenue and Adjusted EBITDA * Integration revenue totaled $4 million in Q4 2012 and $3 million in Q4 2013 Integration Revenue* Strategic Legacy $182 $182

15 15 Wireless Revenue & Adjusted EBITDA ($ in millions)  Postpaid revenue decreased by $9 million, or 21% in Q4 2013 from Q4 2012 due to declining subscriber base ‒ Postpaid ARPU was $52.17 in Q4 2013, up 1% from prior year ‒ Churn was 2.6% for Q4 2013, down from 3.2% in Q4 2012  Prepaid revenue decreased by $1 million or 8% in Q4 2013 from Q4 2012 ‒ Prepaid ARPU of $26.11 in Q4 2013 was down 8% from prior year ‒ Churn was 5.9% for Q4 2013, unchanged from Q4 2012  Adjusted EBITDA margin was 21% for Q4 2013, down from 30% in Q4 2012 ‒ Handset subsidies in Q4 2013 were $8 million, up $2 million from Q4 2012 Revenue EBITDA Revenue EBITDA Q4 2012 Q4 2013 $57 $47 $17 $10

16 $32 $54 $5 Revenue EBITDA Q4 2013 $27 $60 $4 Revenue EBITDA Q4 2012 16 IT Services & Hardware Revenue and Adjusted EBITDA ($ in millions)  Revenue of $86 million for Q4 2013, down $1 million or 1% from Q4 2012 ‒ Telecom & IT Equipment revenue of $53 million for Q4 2013 was down 10% from Q4 2012 ‒ Strategic Managed and Professional Services revenue totaled $32 million for Q4 2013, was up 19% from prior year  Adjusted EBITDA totaled $5 million, up $1 million from Q4 2012  Adjusted EBITDA margin was 6%, up from 5% last year Integration Revenue Strategic Revenue $87 $86

17 Leverage Ratio 17 in millions, except for Leverage ratio As of Dec 31, 2013 Net Debt 2,265$ CONE shares owned by CBB 44,476,835 Less: CBB Equity value of CONE shares 993 CONE stock price (Dec 31) 22.33$ Net Debt - As Adjusted 1,272 CBB Equity value of CONE shares 993,167,726$ Adjusted EBITDA - 2013 407$ Leverage - Unadjusted 5.6x Leverage - As Adjusted for CONE investment 3.1x CBB Equity Value of CONE Shares Liquidity Position ($ in millions) Cash and cash equivalents 5$ Capacity under the Corporate credit facility 160 Capacity under the Receivables facility - 165$ Liquidity at December 31, 2013 No debt maturities until 2018, which provides the company with liquidity necessary to meet its strategic and operational plans

18 Free Cash Flow (excluding CyrusOne) 18 ($ in millions) Q4 2013 YTD Adjusted EBITDA 90$ 407$ Interest Payments (62) (180) Capital Expenditures (55) (189) Pension and OPEB Payments (10) (62) Dividends from CyrusOne 7 21 Working Capital and Other (1) (49) Free Cash Flow (31)$ (52)$ Free cash flow results are in-line with management’s expectation and components are consistent with previous communication.

19 2013 Capital Expenditures (excluding CyrusOne) 19  Passed 71,000 customer locations with Fioptics during 2013; suite of services now available to approximately 35% of Greater Cincinnati.  Entertainment installations totaled 40,000, up 33% compared to the prior year.  Fioptics value added services primarily consists of TV Anywhere platform, which allows mobile viewing from different locations  Other strategic investments include the following: ‒ fiber based service order builds, fiber to the tower, metro fiber, cloud services, and managed service builds Q4 2013 YTD Fioptics Construction 11$ 46$ Installation 7 25 Value added 3 8 21$ 79$ Other Strategic 24 44 Maintenance 6 50 Wireless 4 16 55$ 189$ ($ in millions)

20 2014 Guidance 20 2014 Guidance Revenue $ 1.2 billion Adjusted EBITDA $383 million* * Plus or minus 2 percent

21 $416 ($15) ($6) ($8) $383 ($4) FY 2013 EBITDA CyrusOne 2013 EBITDA Wireless EBITDA Decline 2013 Mark-to- Market Gains Other FY 2014 EBITDA 2014 Adjusted EBITDA Guidance  Growth in strategic revenue products has started to stabilize Adjusted EBITDA  Year over year decline in Adjusted EBITDA due primarily to: ‒ Deconsolidation of CyrusOne effective January 24, 2013 ‒ Continued loss of postpaid Wireless subscribers ‒ Favorable mark-to-market adjustments in 2013 ($’s in millions) 21

22 22 Certain 2014 Free Cash Flow Items  Capital expenditures are expected to range between $180 - $190 million  Interest payments of approximately $160 million  Pension and OPEB payments of approximately $50 million  CyrusOne dividends of approximately $35 million  Minimal cash taxes

23 2013 Capital Expenditures and 2014 Forecast (excluding CyrusOne) 23 2013 Low High Fioptics Construction 46$ 42$ 42$ Installation 25 25 27 Value added 8 8 11 79$ 75$ 80$ Strategic Other 44 45 50 Maintenance 50 50 50 Wireless 16 10 10 189$ 180$ 190$ 2014 ($ in millions)

Appendix

25 ($ in millions, except per share amounts) 2013 2012 $ % Revenue 308.4$ 374.7$ (66.3)$ (18)% Costs and expenses Cost of services and products 164.2 184.8 (20.6) (11)% Selling, general and administrative 59.4 69.9 (10.5) (15)% Depreciation and amortization 42.0 57.2 (15.2) (27)% Restructuring charges 2.9 0.4 2.5 n/m Gain on sale or disposal of assets (0.2) (1.0) 0.8 80% Asset impairments - 0.9 (0.9) n/m Transaction costs - 4.6 (4.6) n/m Operating income 40.1 57.9 (17.8) (31)% Interest expense 42.0 55.6 (13.6) (24)% Loss on extinguishment of debt 29.6 13.6 16.0 n/m Loss from CyrusOne equity method investment 2.6 - 2.6 n/m Other expense, net 0.1 0.1 - 0% Loss before income taxes (34.2) (11.4) (22.8) n/m Income tax benefit (6.1) (1.6) (4.5) n/m Net loss (28.1) (9.8) (18.3) n/m Preferred stock dividends 2.6 2.6 - 0% Net loss applicable to common shareowners (30.7)$ (12.4)$ (18.3)$ n/m Basic and diluted loss per common share (0.15)$ (0.06)$ Three Months Ended December 31, Change 25 CBB Consolidated Results * Results for 2013 only include CyrusOne's results through January 23, 2013. Effective January 24, 2013, the date of completion of CyrusOne's IPO, the Company owns 69% of CyrusOne as an equity method investment, and therefore does not consolidate the CyrusOne results of operations in the total company or segment results.

26 ($ in millions, except per share amounts) 2013 2012 $ % Revenue 1,256.9$ 1,473.9$ (217.0)$ (15)% Costs and expenses Cost of services and products 643.0 694.6 (51.6) (7)% Selling, general and administrative 220.8 269.5 (48.7) (18)% Depreciation and amortization 169.6 217.4 (47.8) (22)% Restructuring charges 13.7 3.4 10.3 n/m Transaction-related compensation 42.6 - 42.6 n/m Curtailment gain (0.6) - (0.6) n/m Loss (gain) on sale or disposal of assets 2.4 (1.6) 4.0 n/m Asset impairments - 14.2 (14.2) n/m Transaction costs 1.6 6.3 (4.7) (75)% Operating income 163.8 270.1 (106.3) (39)% Interest expense 182.0 218.9 (36.9) (17)% Loss on extinguishment of debt 29.6 13.6 16.0 n/m Loss from CyrusOne equity method investment 10.7 - 10.7 n/m Other (income) expense, net (1.3) 1.7 (3.0) n/m (Loss) income before income taxes (57.2) 35.9 (93.1) n/m Income tax (benefit) expense (2.5) 24.7 (27.2) n/m Net (loss) income (54.7) 11.2 (65.9) n/m Preferred stock dividends 10.4 10.4 - 0% Net (loss) income applicable to common shareowners (65.1)$ 0.8$ (65.9)$ n/m Basic and diluted (loss) earnings per common share (0.32)$ 0.00$ Twelve Months Ended December 31, Change 26 CBB Consolidated Results * Results for 2013 only include CyrusOne's results through January 23, 2013. Effective January 24, 2013, the date of completion of CyrusOne's IPO, the Company owns 69% of CyrusOne as an equity method investment, and therefore does not consolidate the CyrusOne results of operations in the total company or segment results.

27 Revenue Classifications 27 Voice STRATEGIC LEGACY INTEGRATION Fioptics Voice Switched Access Digital Trunking Data Fioptics Internet DWDM DSL (> 10 meg) Metro-Ethernet Dedicated Internet DSL (< 10 meg) Dial up Internet TDM DSO, DS1, DS3 Long Distance/ VoIP VoIP Private Line MPLS Audio Conferencing Managed/ Professional Services Managed Services - Monitoring/Management - Data Storage - Data Security - Virtual Data Center Professional Services - Staff Augmentation - IT Consulting Telecom & IT Equipment Hardware Installation Maintenance Maintenance Information Services Long Distance Entertainment Fioptics Video

28 28 Revenue – MD&A Q4 2013 Strategic, Legacy and Integration Wireline IT S&H Wireless Total Eliminations Total Strategic Voice - local service 4.8$ -$ -$ Entertainment 15.8 - - Data 33.7 - - Long distance and VoIP 13.3 - - Other 1.6 - - Managed & Professional Services - 31.5 - Hardware - - - Total Strategic 69.2 31.5 - 100.7 (3.4) 97.3 Legacy Voice - local service 48.3$ -$ -$ Entertainment - - - Data 47.2 - - Long distance and VoIP 12.7 - - Other 1.9 - - Managed & Professional Services - - - Hardware - - - Total Legacy 110.1 - - 110.1 (2.7) 107.4 Integration Voice - local service 1.6$ -$ -$ Entertainment - - - Data - - - Long distance and VoIP 0.7 - - Other 0.5 - - Managed & Professional Services - 1.2 - Hardware - 53.4 - Total Integration 2.8 54.6 - 57.4 (0.5) 56.9 Wireless - - 47.4 47.4 (0.6) 46.8 Total Revenue 182.1$ 86.1$ 47.4$ 315.6$ (7.2)$ 308.4$ Eliminations 4.0 2.6 0.6 7.2 178.1$ 83.5$ 46.8$ 308.4$ Q4 2013 ($ in millions)

29 29 Revenue – MD&A Q4 2012 Strategic, Legacy and Integration Wireline IT S&H Wireless Total Eliminations Total Strategic Voice - local service 3.8$ -$ -$ Entertainment 9.8 - - Data 26.2 - - Long distance and VoIP 12.7 - - Other 1.7 - - Managed & Professional Services - 26.5 - Hardware - - - Total Strategic 54.2 26.5 - 80.7 (1.5) 79.2 Legacy Voice - local service 56.1$ -$ -$ Entertainment - - - Data 51.3 - - Long distance and VoIP 13.8 - - Other 2.3 - - Managed & Professional Services - - - Hardware - - - Total Legacy 123.5 - - 123.5 (4.3) 119.2 Integration Voice - local service 1.8$ -$ -$ Entertainment - - - Data - - - Long distance and VoIP 1.3 - - Other 1.3 - - Managed & Professional Services - 0.8 - Hardware - 59.6 - Total Integration 4.4 60.4 - 64.8 (1.0) 63.8 Wireless - - 56.8 56.8 (0.6) 56.2 Total Revenue 182.1$ 86.9$ 56.8$ 325.8$ (7.4)$ 318.4$ Eliminations 4.6 2.2 0.6 7.4 177.5$ 84.7$ 56.2$ 318.4$ Q4 2012 ($ in millions)

30 30 Revenue – MD&A YTD Q4 2013 Strategic, Legacy and Integration Wireline IT S&H Wireless Total Eliminations Total Strategic Voice - local service 17.9$ -$ -$ Entertainment 54.8 - - Data 122.1 - - Long distance and VoIP 51.1 - - Other 6.7 - - Managed & Professional Services - 118.1 - Hardware - - - Total Strategic 252.6 118.1 - 370.7 (12.1) 358.6 Legacy Voice - local service 204.2$ -$ -$ Entertainment - - - Data 195.7 - - Long distance and VoIP 52.1 - - Other 7.5 - - Managed & Professional Services - - - Hardware - - - Total Legacy 459.5 - - 459.5 (11.7) 447.8 Integration Voice - local service 7.0$ -$ -$ Entertainment 0.4 - - Data - - - Long distance and VoIP 4.0 - - Other 1.3 - - Managed & Professional Services - 3.4 - Hardware - 222.6 - Total Integration 12.7 226.0 - 238.7 (2.6) 236.1 Wireless - - 201.5 201.5 (2.3) 199.2 Total Revenue 724.8$ 344.1$ 201.5$ 1,270.4$ (28.7)$ 1,241.7$ Eliminations 16.8 9.6 2.3 28.7 708.0$ 334.5$ 199.2$ 1,241.7$ YTD Q4 2013 ($ in millions)

31 31 Revenue – MD&A YTD Q4 2012 Strategic, Legacy and Integration Wireline IT S&H Wireless Total Eliminations Total Strategic Voice - local service 13.6$ -$ -$ Entertainment 34.8 - - Data 98.8 - - Long distance and VoIP 51.6 - - Other 7.0 - - Managed & Professional Services - 109.0 - Hardware - - - Total Strategic 205.8 109.0 - 314.8 (9.2) 305.6 Legacy Voice - local service 234.1$ -$ -$ Entertainment - - - Data 208.1 - - Long distance and VoIP 57.1 - - Other 9.8 - - Managed & Professional Services - - - Hardware - - - Total Legacy 509.1 - - 509.1 (14.4) 494.7 Integration Voice - local service 7.7$ -$ -$ Entertainment 0.6 - - Data - - - Long distance and VoIP 5.2 - - Other 2.1 - - Managed & Professional Services - 2.1 - Hardware - 204.6 - Total Integration 15.6 206.7 - 222.3 (3.1) 219.2 Wireless - - 241.8 241.8 (2.3) 239.5 Total Revenue 730.5$ 315.7$ 241.8$ 1,288.0$ (29.0)$ 1,259.0$ Eliminations 19.1 7.6 2.3 29.0 711.4$ 308.1$ 239.5$ 1,259.0$ YTD Q4 2012 ($ in millions)