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 18, 2016

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))

Section 2 - Financial Information

Item 2.02Results of Operations and Financial Condition

On February 18, 2016, Cincinnati Bell Inc. reported its financial results for the fourth quarter 2015. The earnings release is attached as Exhibit 99.1.

Section 7 - Regulation FD

Item 7.01     Regulation FD Disclosure

On February 18, 2016, 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 2015 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 18, 2016
	Exhibit 99.2	Presentation made during the Cincinnati Bell fourth quarter 2015 earnings conference call on February 18, 2016

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 18, 2016. 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 18, 2016	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 18, 2016
99.2	Presentation made during the Cincinnati Bell fourth quarter 2015 earnings conference call on February 18, 2016

EX-99.1

Cincinnati Bell Reports Fourth Quarter and Full Year 2015 Results

HIGHLIGHTS

• Strategic revenue increased more than 20 percent compared to the prior year - consolidated revenue was up 1 percent year-over-year

• Entertainment and Communications segment generated annual revenue growth for the second consecutive year - Fioptics revenue increased 34 percent compared to 2014

• Adjusted EBITDA¹ totaled $302 million - high-end of the 2015 guidance range

• Record-high 40 thousand Fioptics internet and 23 thousand video net activations in 2015

• Strategic IT Services and Hardware revenue increased 29 percent year-over-year

• Proceeds from the monetization of our CyrusOne investment totaled $644 million in 2015

CINCINNATI - February 18, 2016 - Cincinnati Bell Inc. (NYSE:CBB) today announced financial results for the full year and fourth quarter of 2015, highlighted by 21 percent year-to-date strategic revenue growth on strong demand for fiber-based products and IT solutions. Fioptics annual revenue totaled $191 million, up $48 million compared to 2014, resulting in Entertainment and Communications annual revenue growth for the second consecutive year. Strategic IT Services and Hardware revenue increased $41 million compared to a year ago, totaling $179 million for the year.

"Our 2015 results demonstrate this team's ability to execute on all phases of our strategy - we successfully closed our wireless operations, opportunistically monetized a significant portion of our CyrusOne investment and continued the impressive growth across all our strategic products," said Ted Torbeck, president and chief executive officer. Torbeck also added, "Looking forward to 2016, we remain focused on efficiently expanding our fiber network and growing our IT Solutions business while we continue to improve profitability and cash flows."

CONSOLIDATED RESULTS²

Year-to-date consolidated revenue was $1.2 billion, up 1 percent compared to a year ago. Fourth quarter consolidated revenue totaled $289 million, down 2 percent compared to the prior year primarily due to the anticipated decline in lower margin hardware sales. Adjusted EBITDA for the year was $302 million and $71 million in the fourth quarter. Operating income was $128 million and $25 million for the full year and fourth quarter of 2015, respectively. Adjusted EBITDA and operating income were down from a year ago due primarily to additional operating expenses associated with accelerating our fiber investment and absorbing costs associated with discontinuing our wireless operations.

Year-to-date Income from continuing operations totaled $291 million, including a $449 million gain on the sale of CyrusOne investment and $21 million loss on extinguishment of debt. Income from continuing operations for the fourth quarter of 2014 was $31 million, including a $36 million gain on the sale of CyrusOne investment. Income from discontinued operations, net of tax was $63 million for the year and included the $113 million gain recognized in the first quarter on the sale of our wireless spectrum that previously closed in third quarter of 2014. Net income for 2015 was $354 million and $33 million for the fourth quarter, resulting in diluted earnings per share of $1.63 and $0.14 respectively.

Entertainment and Communications Segment

• Entertainment and Communications revenue totaled $188 million for the quarter and $744 million for the full year, up $3 and $14 million, respectively, from the same periods in 2014 after excluding revenue from services provided to our discontinued wireless business.

◦ Fioptics revenue increased 34 percent compared to a year ago, totaling $54 million for the quarter and $191 million for the year.

◦ Strategic revenue for business and carrier customers totaled $45 million for the quarter and $175 million for the full year, including Fioptics revenue of $3 million and $10 million, respectively. Excluding backhaul revenue for services provided to our former wireless business, strategic revenue from business and carrier customers was up 10 percent for the quarter and 9 percent for the year.

• Adjusted EBITDA was $69 million for the quarter and $283 million for the full year 2015. Operating income was $28 million and $130 million for the fourth quarter and full year, respectively. Adjusted EBITDA and operating income were down from a year ago due primarily to additional operating expenses associated with accelerating our fiber investment and costs absorbed as a result of shutting down wireless operations.

• Fioptics video subscribers increased by 5,600 in the quarter totaling 114,400, up 25 percent compared to the end of 2014.

• Record high 287,400 total internet subscribers at the end of the fourth quarter, up 17,500 subscribers from a year ago.

◦ Fioptics internet subscribers were a record high 153,700 at the end of 2015, up more than 35 percent compared to a year ago.

◦ Fioptics internet net activations totaled 10,100 in the quarter and 40,000 for the year.

• In 2015, we passed 97,000 units with Fioptics. The Fioptics suite of products is now available to 432,000 residential and business customers, or 53 percent of Greater Cincinnati.

IT Services and Hardware Segment

• Revenue for the quarter was $105 million, down $5 million from the fourth quarter of 2014. Full year revenue was $435 million, up $2 million compared to the prior year.

◦ Strategic revenue was $48 million in the quarter, up 30 percent over the prior year. Full year strategic revenue was $179 million, up 29 percent over the prior year.

◦ Telecom and IT hardware revenue was $49 million for the quarter, compared to $65 million in the fourth quarter of 2014. Full year telecom and IT hardware revenue was $230 million, down 13 percent compared to the prior year.

• Adjusted EBITDA for the quarter was $9 million, up $3 million from a year ago. Full year Adjusted EBITDA totaled $37 million, up 15 percent from the prior year.

Investment in CyrusOne

• Proceeds from the monetization of our CyrusOne investment totaled $644 million during 2015 - monetized 1.4 million common shares in the fourth quarter of 2015 for cash proceeds of $48 million.

• Remaining 9.5 percent ownership of CyrusOne valued at approximately $250 million.  

2016 Outlook

Cincinnati Bell is providing the following guidance for 2016:

Category	2016 Guidance
Revenue	$1.2 billion
Adjusted EBITDA	$303 million*

*Plus or minus 2 percent

Conference Call/Webcast

Cincinnati Bell will host a conference call on February 18 at 10:00 a.m. (ET) to discuss its results for the fourth quarter and full year of 2015. 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 (888) 891-7634. Callers located outside of the U.S. and Canada may dial (719) 325-2492. A taped replay of the conference call will be available approximately one hour after the conclusion of the call until 1:00 p.m. on Thursday, March 3, 2016. 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 1666944. 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, (gain) loss on sale or disposal of assets, transaction costs, curtailment gain (loss), 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.

²Consolidated Results for the three and twelve months ended December 31, 2015 and 2014 report our former wireless segment results as discontinued operations. Effective March 31, 2015, the Company no longer provides wireless services.

Adjusted 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 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.

About Cincinnati Bell Inc.

With headquarters in Cincinnati, Ohio, Cincinnati Bell Inc. (CBB) provides integrated communications solutions – including local and long distance voice, data, high-speed Internet and video – 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. 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
				2015			2014			$			%	2015			2014			$			%
	Revenue			$	289.3		$	294.9		$	(5.6	)	(2)%	$	1,167.8		$	1,161.5		$	6.3		1%
	Costs and expenses
		Cost of services and products		166.6			173.4			(6.8		)	(4)%	670.6			647.7			22.9			4%
		Selling, general and administrative		57.4			52.5			4.9			9%	219.1			204.2			14.9			7%
		Depreciation and amortization		39.2			33.2			6.0			18%	141.6			127.6			14.0			11%
		Restructuring (reversals) charges		—			(0.3		)	0.3			n/m	6.0			(0.4		)	6.4			n/m
		Loss (gain) on sale or disposal of assets, net		0.5			(0.2		)	0.7			n/m	0.8			(0.3		)	1.1			n/m
		Curtailment loss		—			—			—			n/m	0.3			—			0.3			n/m
		Impairment of assets		—			4.6			(4.6		)	n/m	—			4.6			(4.6		)	n/m
		Transaction costs		0.6			0.3			0.3			n/m	1.4			1.2			0.2			17%
			Operating income	25.0			31.4			(6.4		)	(20)%	128.0			176.9			(48.9		)	(28)%
	Interest expense			20.9			32.9			(12.0		)	(36)%	103.1			145.9			(42.8		)	(29)%
	(Gain) loss on extinguishment of debt			(0.4		)	0.2			(0.6		)	n/m	20.9			19.6			1.3			7%
	(Income) loss from CyrusOne investment			(0.1		)	5.1			(5.2		)	n/m	5.1			7.0			(1.9		)	(27)%
	Gain on sale of CyrusOne investment			(36.3		)	—			(36.3		)	n/m	(449.2		)	(192.8		)	(256.4		)	n/m
	Other income, net			(3.3		)	(0.7		)	(2.6		)	n/m	(2.5		)	(1.9		)	(0.6		)	32%
	Income (loss) from continuing operations before income taxes			44.2			(6.1		)	50.3			n/m	450.6			199.1			251.5			n/m
	Income tax expense (benefit)			13.7			(1.7		)	15.4			n/m	159.8			81.4			78.4			96%
	Income (loss) from continuing operations			30.5			(4.4		)	34.9			n/m	290.8			117.7			173.1			n/m
	Income (loss) from discontinued operations, net of tax			2.1			(13.9		)	16.0			n/m	62.9			(42.1		)	105.0			n/m
	Net income (loss)			32.6			(18.3		)	50.9			n/m	353.7			75.6			278.1			n/m
	Preferred stock dividends			2.6			2.6			—			0%	10.4			10.4			—			0%
	Net income (loss) applicable to common shareowners			$	30.0		$	(20.9	)	$	50.9		n/m	$	343.3		$	65.2		$	278.1		n/m
	Basic net earnings (loss) per common share
			Earnings (loss) from continuing operations	$	0.13		$	(0.03	)					$	1.34		$	0.51
			Earnings (loss) from discontinued operations	0.01			(0.07		)					0.30			(0.20		)
	Basic net earnings (loss) per common share			$	0.14		$	(0.10	)					$	1.64		$	0.31
	Diluted net earnings (loss) per common share
			Earnings (loss) from continuing operations	$	0.13		$	(0.03	)					$	1.33		$	0.51
			Earnings (loss) from discontinued operations	0.01			(0.07		)					0.30			(0.20		)
	Diluted net earnings (loss) per common share			$	0.14		$	(0.10	)					$	1.63		$	0.31
	Weighted average common shares outstanding
		(in millions)
		- Basic		209.8			208.7							209.6			208.5
		- Diluted		210.5			208.7							210.2			209.6

Cincinnati Bell Inc.
Income Statements by Segment
(Unaudited)
(Dollars in millions)
			Three Months Ended								Twelve Months Ended
			December 31,				Change				December 31,				Change
			2015		2014		$			%	2015		2014		$			%
	Entertainment and Communications
	Revenue
		Data	$	81.5	$	77.7	$	3.8		5%	$	322.8	$	309.6	$	13.2		4%
		Voice	70.6		75.4		(4.8		)	(6)%	291.9		313.5		(21.6		)	(7)%
		Video	27.3		21.0		6.3			30%	96.6		75.5		21.1			28%
		Services and other	8.4		14.3		(5.9		)	(41)%	32.4		42.1		(9.7		)	(23)%
		Total revenue	187.8		188.4		(0.6		)	0%	743.7		740.7		3.0			0%
	Operating costs and expenses
		Cost of services and products	86.0		84.8		1.2			1%	331.5		306.2		25.3			8%
		Selling, general and administrative	37.6		34.9		2.7			8%	150.9		136.2		14.7			11%
		Depreciation and amortization	36.1		30.1		6.0			20%	129.2		115.7		13.5			12%
		Other*	—		4.1		(4.1		)	n/m	2.2		3.7		(1.5		)	(41)%
		Total operating costs and expenses	159.7		153.9		5.8			4%	613.8		561.8		52.0			9%
	Operating income		$	28.1	$	34.5	$	(6.4	)	(19)%	$	129.9	$	178.9	$	(49.0	)	(27)%
	IT Services and Hardware
	Revenue
		Professional services	$	27.7	$	22.8	$	4.9		21%	$	105.5	$	86.6	$	18.9		22%
		Management and monitoring	8.1		6.9		1.2			17%	31.0		25.2		5.8			23%
		Unified communications	9.6		9.2		0.4			4%	37.8		35.1		2.7			8%
		Cloud services	9.7		5.7		4.0			70%	30.9		20.8		10.1			49%
		Telecom and IT hardware	49.4		64.9		(15.5		)	(24)%	230.2		265.3		(35.1		)	(13)%
		Total revenue	104.5		109.5		(5.0		)	(5)%	435.4		433.0		2.4			1%
	Operating costs and expenses
		Cost of services and products	82.2		90.3		(8.1		)	(9)%	345.2		350.0		(4.8		)	(1)%
		Selling, general and administrative	13.6		12.6		1.0			8%	54.0		51.5		2.5			5%
		Depreciation and amortization	3.1		3.1		—			0%	12.3		11.7		0.6			5%
		Other*	0.5		—		0.5			n/m	3.3		—		3.3			n/m
		Total operating costs and expenses	99.4		106.0		(6.6		)	(6)%	414.8		413.2		1.6			0%
	Operating income		$	5.1	$	3.5	$	1.6		46%	$	20.6	$	19.8	$	0.8		4%
		*Other includes restructuring (reversals) charges, loss (gain) on sale or disposal of assets (net), curtailment loss and asset impairments.

Cincinnati Bell Inc.
Revenues by Segment
(Unaudited)
(Dollars in millions)
				Three Months Ended								Twelve Months Ended
				December 31,				Change				December 31,				Change
				2015		2014		$			%	2015		2014		$			%
Entertainment and Communications
	Consumer
		Strategic
			Data	$	20.6	$	13.8	$	6.8		49%	$	72.7	$	48.4	$	24.3		50%
			Voice	5.1		4.8		0.3			6%	19.7		17.7		2.0			11%
			Video	26.8		20.6		6.2			30%	94.8		73.9		20.9			28%
			Services and other	0.9		0.9		—			0%	3.7		4.0		(0.3		)	(8)%
				53.4		40.1		13.3			33%	190.9		144.0		46.9			33%
		Legacy
			Data	11.6		13.8		(2.2		)	(16)%	49.5		58.5		(9.0		)	(15)%
			Voice	20.3		23.6		(3.3		)	(14)%	86.1		101.1		(15.0		)	(15)%
			Services and other	3.0		0.8		2.2			n/m	6.7		7.7		(1.0		)	(13)%
				34.9		38.2		(3.3		)	(9)%	142.3		167.3		(25.0		)	(15)%
		Integration
			Services and other	1.3		7.0		(5.7		)	(81)%	7.7		11.2		(3.5		)	(31)%
	Total consumer revenue			$	89.6	$	85.3	$	4.3		5%	$	340.9	$	322.5	$	18.4		6%
	Business
		Strategic
			Data	$	23.4	$	21.5	$	1.9		9%	$	89.6	$	83.6	$	6.0		7%
			Voice	11.2		9.3		1.9			20%	42.5		35.9		6.6			18%
			Video	0.5		0.4		0.1			25%	1.8		1.6		0.2			13%
			Services and other	0.8		1.0		(0.2		)	(20)%	3.2		3.8		(0.6		)	(16)%
				35.9		32.2		3.7			11%	137.1		124.9		12.2			10%
		Legacy
			Data	5.6		6.5		(0.9		)	(14)%	23.2		27.6		(4.4		)	(16)%
			Voice	29.5		32.2		(2.7		)	(8)%	123.6		134.2		(10.6		)	(8)%
			Services and other	0.4		0.4		—			0%	1.3		1.2		0.1			8%
				35.5		39.1		(3.6		)	(9)%	148.1		163.0		(14.9		)	(9)%
		Integration
			Services and other	0.6		1.1		(0.5		)	(45)%	2.6		4.7		(2.1		)	(45)%
	Total business revenue			$	72.0	$	72.4	$	(0.4	)	(1)%	$	287.8	$	292.6	$	(4.8	)	(2)%
	Carrier
		Strategic
			Data	$	8.9	$	10.2	$	(1.3	)	(13)%	$	37.7	$	41.6	$	(3.9	)	(9)%
		Legacy
			Data	11.4		11.9		(0.5		)	(4)%	50.1		49.9		0.2			0%
			Voice	4.5		5.5		(1.0		)	(18)%	20.0		24.6		(4.6		)	(19)%
			Services and other	1.4		3.1		(1.7		)	(55)%	7.2		9.5		(2.3		)	(24)%
				17.3		20.5		(3.2		)	(16)%	77.3		84.0		(6.7		)	(8)%
	Total carrier revenue			$	26.2	$	30.7	$	(4.5	)	(15)%	$	115.0	$	125.6	$	(10.6	)	(8)%
Total Entertainment and Communications				$	187.8	$	188.4	$	(0.6	)	0%	$	743.7	$	740.7	$	3.0		0%

Cincinnati Bell Inc.
Revenues by Segment
(Unaudited)
(Dollars in millions)
				Three Months Ended								Twelve Months Ended
				December 31,				Change				December 31,				Change
				2015		2014		$			%	2015		2014		$			%
IT Services and Hardware
	Business
		Strategic
			Professional services	$	23.3	$	18.3	$	5.0		27%	$	90.4	$	70.2	$	20.2		29%
			Management and monitoring	8.1		6.8		1.3			19%	31.0		24.8		6.2			25%
			Unified communications	7.0		6.2		0.8			13%	27.1		22.9		4.2			18%
			Cloud services	9.7		5.7		4.0			70%	30.9		20.8		10.1			49%
				48.1		37.0		11.1			30%	179.4		138.7		40.7			29%
		Integration
			Professional services	4.4		4.5		(0.1		)	(2)%	15.1		16.4		(1.3		)	(8)%
			Management and monitoring	—		0.1		(0.1		)	n/m	—		0.4		(0.4		)	n/m
			Unified communications	2.6		3.0		(0.4		)	(13)%	10.7		12.2		(1.5		)	(12)%
			Telecom and IT hardware	49.4		64.9		(15.5		)	(24)%	230.2		265.3		(35.1		)	(13)%
				56.4		72.5		(16.1		)	(22)%	256.0		294.3		(38.3		)	(13)%
Total IT Services and Hardware Revenue				$	104.5	$	109.5	$	(5.0	)	(5)%	$	435.4	$	433.0	$	2.4		1%

Cincinnati Bell Inc.
Segment Information
(Unaudited)
(Dollars in millions)
			Three Months Ended										Twelve Months Ended
			December 31,						Change				December 31,						Change
			2015			2014			$			%	2015			2014			$			%
	Revenue
		Entertainment and Communications	$	187.8		$	188.4		$	(0.6	)	0%	$	743.7		$	740.7		$	3.0		0%
		IT Services and Hardware	104.5			109.5			(5.0		)	(5)%	435.4			433.0			2.4			1%
		Eliminations	(3.0		)	(3.0		)	—			0%	(11.3		)	(12.2		)	0.9			(7)%
		Total revenue	$	289.3		$	294.9		$	(5.6	)	(2)%	$	1,167.8		$	1,161.5		$	6.3		1%
	Cost of Services and Products
		Entertainment and Communications	$	86.0		$	84.8		$	1.2		1%	$	331.5		$	306.2		$	25.3		8%
		IT Services and Hardware	82.2			90.3			(8.1		)	(9)%	345.2			350.0			(4.8		)	(1)%
		Eliminations	(1.6		)	(1.7		)	0.1			(6)%	(6.1		)	(8.5		)	2.4			(28)%
		Total cost of services and products	$	166.6		$	173.4		$	(6.8	)	(4)%	$	670.6		$	647.7		$	22.9		4%
	Selling, General and Administrative
		Entertainment and Communications	$	37.6		$	34.9		$	2.7		8%	$	150.9		$	136.2		$	14.7		11%
		IT Services and Hardware	13.6			12.6			1.0			8%	54.0			51.5			2.5			5%
		Corporate and eliminations	6.2			5.0			1.2			24%	14.2			16.5			(2.3		)	(14)%
		Total selling, general and administrative	$	57.4		$	52.5		$	4.9		9%	$	219.1		$	204.2		$	14.9		7%
	Depreciation and Amortization
		Entertainment and Communications	$	36.1		$	30.1		$	6.0		20%	$	129.2		$	115.7		$	13.5		12%
		IT Services and Hardware	3.1			3.1			—			0%	12.3			11.7			0.6			5%
		Corporate	—			—			—			n/m	0.1			0.2			(0.1		)	(50)%
		Total depreciation and amortization	$	39.2		$	33.2		$	6.0		18%	$	141.6		$	127.6		$	14.0		11%
	Other*
		Entertainment and Communications	$	—		$	4.1		$	(4.1	)	n/m	$	2.2		$	3.7		$	(1.5	)	(41)%
		IT Services and Hardware	0.5			—			0.5			n/m	3.3			—			3.3			n/m
		Corporate	0.6			0.3			0.3			n/m	3.0			1.4			1.6			n/m
		Total other	$	1.1		$	4.4		$	(3.3	)	(75)%	$	8.5		$	5.1		$	3.4		67%
	Operating Income
		Entertainment and Communications	$	28.1		$	34.5		$	(6.4	)	(19)%	$	129.9		$	178.9		$	(49.0	)	(27)%
		IT Services and Hardware	5.1			3.5			1.6			46%	20.6			19.8			0.8			4%
		Corporate	(8.2		)	(6.6		)	(1.6		)	24%	(22.5		)	(21.8		)	(0.7		)	3%
		Total operating income	$	25.0		$	31.4		$	(6.4	)	(20)%	$	128.0		$	176.9		$	(48.9	)	(28)%
		* Other includes restructuring (reversals) charges, loss (gain) on sale or disposal of assets (net), curtailment loss, asset impairments and transaction costs.

Cincinnati Bell Inc.
Segment Metric Information
(Unaudited)
(In thousands)
			December 31,	September 30,	June 30,	March 31,	December 31,
			2015	2015	2015	2015	2014
	Residential voice lines
		Legacy voice lines	146.4	153.5	161.5	170.5	181.6
		Fioptics voice lines	71.4	68.0	64.2	60.0	56.7
		Total residential voice lines	217.8	221.5	225.7	230.5	238.3
	Business voice lines
		Legacy voice lines	215.4	220.1	227.5	233.0	238.0
		VoIP lines*	89.5	86.9	82.4	73.9	70.0
		Total business voice lines	304.9	307.0	309.9	306.9	308.0
	Total voice lines		522.7	528.5	535.6	537.4	546.3
	Long distance lines		339.7	344.6	349.7	355.5	362.8
	Internet subscribers
		DSL	133.7	137.7	142.7	149.6	156.2
		Fioptics	153.7	143.6	132.4	123.1	113.7
	Total internet subscribers		287.4	281.3	275.1	272.7	269.9
	Fioptics video subscribers		114.4	108.8	101.5	95.8	91.4
	Fioptics units passed		432.0	408.1	382.3	357.6	335.0
	*	VoIP lines include Fioptics business voice lines.

Cincinnati Bell Inc.
Net Debt and Common Shares Outstanding
(Unaudited)
(Dollars and shares in millions)
		December 31,			December 31,
		2015			2014
Receivables Facility		$	17.6		$	19.2
8 3/4% Senior Subordinated Notes due 2018		—			300.0
Corporate Credit Agreement - Tranche B Term Loan		527.9			533.2
8 3/8% Senior Notes due 2020		478.5			661.2
7 1/4% Senior Notes due 2023		26.3			40.0
Various Cincinnati Bell Telephone notes		128.7			134.5
Capital leases and other debt		68.3			16.1
Net unamortized discount		(1.7		)	(3.2		)
	Total debt	1,245.6			1,701.0
Less: Cash and cash equivalents		(7.4		)	(57.9		)
	Net debt (as defined by the company)	$	1,238.2		$	1,643.1
Corporate Credit Agreement availability		$	175.0		$	150.0
Common shares outstanding		209.9			209.3

Cincinnati Bell Inc.
Reconciliation of Net Income (Loss) (GAAP) to Adjusted EBITDA (Non-GAAP)
(Unaudited)
(Dollars in millions)
			Three Months Ended December 31, 2015
			Entertainment & Communications			IT Services & Hardware			Corporate			Total Company
	Net income (GAAP)											$	32.6
	Less:
		Income from discontinued operations, net of tax										2.1
	Income from continuing operations (GAAP)											$	30.5
	Add:
		Income tax expense										13.7
		Interest expense										20.9
		Income from CyrusOne investment										(0.1		)
		Gain on sale of CyrusOne investment										(36.3		)
		Gain on extinguishment of debt										(0.4		)
		Other income, net										(3.3		)
	Operating income (GAAP)		$	28.1		$	5.1		$	(8.2	)	$	25.0
	Add:
		Depreciation and amortization	36.1			3.1			—			39.2
		Loss on sale or disposal of assets	—			0.5			—			0.5
		Transaction costs	—			—			0.6			0.6
		Employee contract termination costs	0.9			0.4			—			1.3
		Pension and other retirement plan expenses	3.9			—			0.4			4.3
	Adjusted EBITDA (Non-GAAP)		$	69.0		$	9.1		$	(7.2	)	$	70.9
	Adjusted EBITDA Margin		37		%	9		%	—			25		%
			Three Months Ended December 31, 2014
			Entertainment & Communications			IT Services & Hardware			Corporate			Total Company
	Net loss (GAAP)											$	(18.3	)
	Less:
		Loss from discontinued operations, net of tax										(13.9		)
	Loss from continuing operations (GAAP)											$	(4.4	)
	Add:
		Income tax benefit										(1.7		)
		Interest expense										32.9
		Loss from CyrusOne investment										5.1
		Loss on extinguishment of debt										0.2
		Other income, net										(0.7		)
	Operating income (GAAP)		$	34.5		$	3.5		$	(6.6	)	$	31.4
	Add:
		Depreciation and amortization	30.1			3.1			—			33.2
		Restructuring reversals	(0.3		)	—			—			(0.3		)
		Gain on sale or disposal of assets	(0.2		)	—			—			(0.2		)
		Transaction costs	—			—			0.3			0.3
		Employee contract termination	—			—			1.4			1.4
		Impairment of assets	4.6			—			—			4.6
		Pension and other retirement plan expenses	3.9			—			0.6			4.5
	Adjusted EBITDA (Non-GAAP)		$	72.6		$	6.6		$	(4.3	)	$	74.9
	Adjusted EBITDA Margin		39		%	6		%	—			25		%
	Year-over-year dollar change in Adjusted EBITDA		$	(3.6	)	$	2.5		$	(2.9	)	$	(4.0	)
	Year-over-year percentage change in Adjusted EBITDA		(5		)%	38		%	67		%	(5		)%

Cincinnati Bell Inc.
Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP)
(Unaudited)
(Dollars in millions)
			Twelve Months Ended December 31, 2015
			Entertainment & Communications			IT Services & Hardware			Corporate			Total Company
	Net income (GAAP)											$	353.7
	Less:
		Income from discontinued operations, net of tax										62.9
	Income from continuing operations (GAAP)											$	290.8
	Add:
		Income tax expense										159.8
		Interest expense										103.1
		Loss from CyrusOne investment										5.1
		Gain on sale of CyrusOne investment										(449.2		)
		Loss on extinguishment of debt										20.9
		Other income, net										(2.5		)
	Operating income (GAAP)		$	129.9		$	20.6		$	(22.5	)	$	128.0
	Add:
		Depreciation and amortization	129.2			12.3			0.1			141.6
		Restructuring charges	1.6			2.8			1.6			6.0
		Loss on sale or disposal of assets	0.3			0.5			—			0.8
		Transaction costs	—			—			1.4			1.4
		Employee contract termination costs	2.2			0.6			—			2.8
		Curtailment loss	0.3			—			—			0.3
		Pension and other retirement plan expenses	19.3			—			1.9			21.2
	Adjusted EBITDA (Non-GAAP)		$	282.8		$	36.8		$	(17.5	)	$	302.1
	Adjusted EBITDA Margin		38		%	8		%	—			26		%
			Twelve Months Ended December 31, 2014
			Entertainment & Communications			IT Services & Hardware			Corporate			Total Company
	Net income (GAAP)											$	75.6
	Less:
		Loss from discontinued operations, net of tax										(42.1		)
	Income from continuing operations (GAAP)											$	117.7
	Add:
		Income tax expense										81.4
		Interest expense										145.9
		Loss from CyrusOne investment										7.0
		Gain on sale of CyrusOne investment										(192.8		)
		Loss on extinguishment of debt										19.6
		Other income, net										(1.9		)
	Operating income (GAAP)		$	178.9		$	19.8		$	(21.8	)	$	176.9
	Add:
		Depreciation and amortization	115.7			11.7			0.2			127.6
		Restructuring (reversals) charges	(0.5		)	—			0.1			(0.4		)
		(Gain) loss on sale or disposal of assets	(0.4		)	—			0.1			(0.3		)
		Transaction costs	—			—			1.2			1.2
		Employee contract termination	—			0.6			1.4			2.0
		Impairment of assets	4.6			—			—			4.6
		Pension and other retirement plan expenses	16.0			—			2.0			18.0
	Adjusted EBITDA (Non-GAAP)		$	314.3		$	32.1		$	(16.8	)	$	329.6
	Adjusted EBITDA Margin		42		%	7		%	—			28		%
	Year-over-year dollar change in Adjusted EBITDA		$	(31.5	)	$	4.7		$	(0.7	)	$	(27.5	)
	Year-over-year percentage change in Adjusted EBITDA		(10		)%	15		%	4		%	(8		)%

Cincinnati Bell Inc.
Consolidated Statements of Cash Flows
(Unaudited)
(Dollars in millions)
			Three Months Ended						Twelve Months Ended
			December 31,						December 31,
			2015			2014			2015			2014
	Cash provided by operating activities		$	16.2		$	54.4		$	110.9		$	175.2
		Capital expenditures	(77.9		)	(61.2		)	(283.6		)	(182.3		)
		Dividends received from CyrusOne	2.7			6.0			22.2			28.4
		Proceeds from sale of CyrusOne investment	47.6			—			643.9			355.9
		Proceeds from sale of Wireless spectrum licenses	—			—			—			194.4
		Other, net	0.3			(0.1		)	0.7			(3.8		)
	Cash (used in) provided by investing activities		(27.3		)	(55.3		)	383.2			392.6
		Net increase (decrease) in corporate credit and receivables facilities with initial maturities less than 90 days	17.6			(93.2		)	(1.6		)	(127.0		)
		Repayment of debt	(21.9		)	(25.9		)	(531.7		)	(376.5		)
		Debt issuance costs	—			(0.9		)	(0.4		)	(0.9		)
		Dividends paid on preferred stock	(2.6		)	(2.6		)	(10.4		)	(10.4		)
		Proceeds from exercise of options and warrants	—			0.1			—			1.3
		Other, net	—			(0.2		)	(0.5		)	(1.0		)
	Cash used in financing activities		(6.9		)	(122.7		)	(544.6		)	(514.5		)
	Net (decrease) increase in cash and cash equivalents		(18.0		)	(123.6		)	(50.5		)	53.3
	Cash and cash equivalents at beginning of period		25.4			181.5			57.9			4.6
	Cash and cash equivalents at end of period		$	7.4		$	57.9		$	7.4		$	57.9
	Reconciliation of GAAP Cash Flow to
		Free Cash Flow (as defined by the company)
	Net (decrease) increase in cash and cash equivalents		$	(18.0	)	$	(123.6	)	$	(50.5	)	$	53.3
	Adjustments:
		Net (decrease) increase in corporate credit and receivables facilities with initial maturities less than 90 days	(17.6		)	93.2			1.6			127.0
		Proceeds from sale of CyrusOne investment	(47.6		)	—			(643.9		)	(355.9		)
		Repayment of debt	21.9			25.9			531.7			376.5
		Debt issuance costs	—			0.9			0.4			0.9
		Decommissioning of wireless towers	2.2			—			4.9			—
		Transaction costs	0.6			0.3			1.4			1.2
		Discontinued operations*	3.1			3.0			27.6			(219.3		)
		Free cash flow	(55.4		)	(0.3		)	(126.8		)	(16.3		)
	Income tax payments		$	5.1		$	4.2		$	8.8		$	9.1
	*For the quarter ended December 31, 2015 and 2014, our wireless business generated free cash flow of ($3.1) million and ($3.0) million, respectively. For the twelve months ended December 31, 2015 and 2014, our wireless business generated free cash flow of ($27.6) million and $24.9 million, respectively. The twelve months ended December 31, 2014 also included $194.4 million of proceeds from the sale of wireless spectrum licenses. Wireless operations are now reported as discontinued operations within the consolidated financial statements.

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, 2014	$	(0.3	)
	Decrease in Adjusted EBITDA	(4.0		)
	Increase in capital expenditures from continuing operations	(16.7		)
	Decrease in interest payments	9.6
	Decrease in pension and postretirement payments and contributions	2.2
	Change in working capital and other	(46.2		)
	Free Cash Flow for the three months ended December 31, 2015	$	(55.4	)
	Free Cash Flow for the twelve months ended December 31, 2014	$	(16.3	)
	Decrease in Adjusted EBITDA	(27.5		)
	Increase in capital expenditures from continuing operations	(107.8		)
	Decrease in interest payments	44.6
	Decrease in pension and postretirement payments and contributions	10.8
	Change in working capital and other	(30.6		)
	Free Cash Flow for the twelve months ended December 31, 2015	$	(126.8	)

Cincinnati Bell Inc.
Capital Expenditures
(Unaudited)
(Dollars in millions)
	Three Months Ended
	Dec. 31, 2015		Sep. 30, 2015		Jun. 30, 2015		Mar. 31, 2015		Dec. 31, 2014
Entertainment and Communications	$	76.0	$	69.4	$	70.1	$	54.0	$	57.6
IT Services and Hardware	1.9		3.8		4.4		3.9		3.4
Corporate	—		—		0.1		—		0.2
Total capital expenditures	$	77.9	$	73.2	$	74.6	$	57.9	$	61.2

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, 2015
				December 31, 2015							Before Special Items
				(GAAP)			Special Items				(Non-GAAP)
	Revenue			$	289.3		$	—			$	289.3
	Costs and expenses
		Cost of services and products		166.6			—				166.6
		Selling, general and administrative		57.4			(1.3		)	[A]	56.1
		Depreciation and amortization		39.2			—				39.2
		Loss on sale or disposal of assets, net		0.5			(0.5		)	[B]	—
		Transaction costs		0.6			(0.6		)	[C]	—
			Operating income	25.0			2.4				27.4
	Interest expense			20.9			—				20.9
	Gain on extinguishment of debt			(0.4		)	0.4			[D]	—
	Income from CyrusOne investment			(0.1		)					(0.1		)
	Gain on sale of CyrusOne investment			(36.3		)	36.3			[E]	—
	Other income, net			(3.3		)	2.9			[F]	(0.4		)
	Income from continuing operations before income taxes			44.2			(37.2		)		7.0
	Income tax expense			13.7			(13.4		)		0.3
	Income from continuing operations			30.5			(23.8		)		6.7
	Income from discontinued operations, net of tax			2.1			(2.1		)		—
	Net income			32.6			(25.9		)		6.7
	Preferred stock dividends			2.6			—				2.6
	Net income applicable to common shareowners			$	30.0		$	(25.9	)		$	4.1
	Weighted average diluted common shares			210.5			210.5				210.5
	Diluted earnings per common share*			$	0.14		$	(0.12	)		$	0.02
	Normalized results have been adjusted for the following (pretax adjustments are tax effected at 36%):
A	Employee contract termination costs.
B	Loss attributable to assets sold in the fourth quarter.
C	Transaction costs associated with exploring opportunities to increase the scale of our IT Services and Hardware segment.
D	Gain on extinguishment of debt related to the redemption of $5.8 million of the outstanding CBT Notes that were redeemed at an average redemption price of 90.840%, partially offset by a loss on the redemption of $13.7 million of the outstanding 7 1/4% Notes due 2023 at an average redemption price of 99.853%.
E	Gain on sale of CyrusOne investment.
F	Adjust asset retirement obligation to lower expected costs associated with wireless tower decommissioning.
*	Diluted earnings 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, 2014
				December 31, 2014							Before Special Items
				(GAAP)			Special Items				(Non-GAAP)
	Revenue			$	294.9		$	—			$	294.9
	Costs and expenses
		Cost of services and products		173.4			—				173.4
		Selling, general and administrative		52.5			(1.4		)	[A]	51.1
		Depreciation and amortization		33.2			—				33.2
		Restructuring reversals		(0.3		)	0.3			[B]	—
		Gain on sale or disposal of assets		(0.2		)	0.2			[C]	—
		Impairment of assets		4.6			(4.6		)	[D]	—
		Transaction costs		0.3			(0.3		)	[E]	—
			Operating income	31.4			5.8				37.2
	Interest expense			32.9			—				32.9
	Loss on extinguishment of debt			0.2			(0.2		)	[F]	—
	Loss from CyrusOne investment			5.1			—				5.1
	Other income, net			(0.7		)	—				(0.7		)
	Loss from continuing operations before income taxes			(6.1		)	6.0				(0.1		)
	Income tax (benefit) expense			(1.7		)	2.2				0.5
	Loss from continuing operations			(4.4		)	3.8				(0.6		)
	Loss from discontinued operations, net of tax			(13.9		)	13.9				—
	Net loss			(18.3		)	17.7				(0.6		)
	Preferred stock dividends			2.6			—				2.6
	Net loss applicable to common shareowners			$	(20.9	)	$	17.7			$	(3.2	)
	Weighted average diluted common shares			208.7			208.7				208.7
	Diluted loss per common share*			$	(0.10	)	$	0.08			$	(0.02	)
	Normalized results have been adjusted for the following (pretax adjustments are tax effected at 36%):
A	Employee contract termination costs associated with integrating IT Services and Hardware segment with Entertainment and Communications business markets.
B	Restructuring reversals were associated with a lease abandonment reserve for vacant floors that were reoccupied.
C	Gain on sale of wireline copper cabling.
D	Abandonment of internal use software project.
E	Transaction costs were incurred for legal fees associated with the sale of our wireless assets.
F	Loss on extinguishment of debt related to the redemption of $22.7 million of the outstanding 8 3/8% Senior Notes due 2020 redeemed on October 1, 2014 at par.
*	Diluted 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, 2015
				December 31, 2015							Before Special Items
				(GAAP)			Special Items				(Non-GAAP)
	Revenue			$	1,167.8		$	—			$	1,167.8
	Costs and expenses
		Cost of services and products		670.6			—				670.6
		Selling, general and administrative		219.1			(6.6		)	[A]	212.5
		Depreciation and amortization		141.6			—				141.6
		Restructuring charges		6.0			(6.0		)	[B]	—
		Loss on sale or disposal of assets, net		0.8			(0.8		)	[C]	—
		Curtailment loss		0.3			(0.3		)	[D]	—
		Transaction costs		1.4			(1.4		)	[E]	—
			Operating income	128.0			15.1				143.1
	Interest expense			103.1			—				103.1
	Loss on extinguishment of debt			20.9			(20.9		)	[F]	—
	Loss from CyrusOne investment			5.1			—				5.1
	Gain on sale of CyrusOne investment			(449.2		)	449.2			[G]	—
	Other (income) expense, net			(2.5		)	2.9			[H]	0.4
	Income from continuing operations before income taxes			450.6			(416.1		)		34.5
	Income tax expense			159.8			(149.8		)		10.0
	Income from continuing operations			290.8			(266.3		)		24.5
	Income from discontinued operations, net of tax			62.9			(62.9		)		—
	Net income			353.7			(329.2		)		24.5
	Preferred stock dividends			10.4			—				10.4
	Net income applicable to common shareowners			$	343.3		$	(329.2	)		$	14.1
	Weighted average diluted common shares			210.2			210.2				210.2
	Diluted earnings per common share*			$	1.63		$	(1.57	)		$	0.07
	Normalized results have been adjusted for the following (pretax adjustments are tax effected at 36%):
A	Pension related charges of $3.8 million associated with non-qualified excess plan and $2.8 million of employee contract termination costs.
B	Restructuring charges consist of employee severance, project costs to identify opportunities to further integrate the business markets within our Entertainment and Communications segment and IT Services and Hardware segment, and lease abandonment costs.
C	Loss is attributable to a software project that was abandoned in the second quarter and other assets sold in the fourth quarter.
D	Curtailment loss resulted from an amendment to the bargained pension plan.
E	Transaction costs associated with exploring opportunities to increase the scale of our IT Services and Hardware segment.
F	Loss on extinguishment of debt related to the redemption of $300.0 million of the outstanding 8 3/4% Senior Subordinated Notes due 2018 on May 7, 2015 at a redemption rate of 102.188%; the redemption of $45.1 million and $137.6 million of the outstanding 8 3/8% Senior Notes due 2020 during the second and third quarter, respectively, at an average redemption rate of 106.450% in the second quarter and 105.242% in the third quarter; and the redemption of $13.7 million of the outstanding 7 1/4% Notes due 2023 at an average redemption price of 99.853% in the fourth quarter. In addition, $5.8 million of the outstanding CBT Notes were redeemed at an average redemption price of 90.840% in the fourth quarter.
G	Gain on sale of CyrusOne investment.
H	Adjust asset retirement obligation to lower expected costs associated with wireless tower decommissioning.
*	Diluted 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, 2014
				December 31, 2014							Before Special Items
				(GAAP)			Special Items				(Non-GAAP)
	Revenue			$	1,161.5		$	—			$	1,161.5
	Costs and expenses
		Cost of services and products		647.7			—				647.7
		Selling, general and administrative		204.2			(2.0		)	[A]	202.2
		Depreciation and amortization		127.6			—				127.6
		Restructuring reversals		(0.4		)	0.4			[B]	—
		Gain on sale or disposal of assets, net		(0.3		)	0.3			[C]	—
		Impairment of assets		4.6			(4.6		)	[D]	—
		Transaction costs		1.2			(1.2		)	[E]	—
			Operating income	176.9			7.1				184.0
	Interest expense			145.9			—				145.9
	Loss on extinguishment of debt			19.6			(19.6		)	[F]	—
	Loss from CyrusOne investment			7.0			—				7.0
	Gain on sale of CyrusOne investment			(192.8		)	192.8			[G]	—
	Other income, net			(1.9		)	—				(1.9		)
	Income from continuing operations before income taxes			199.1			(166.1		)		33.0
	Income tax expense			81.4			(59.8		)		21.6
	Income from continuing operations			117.7			(106.3		)		11.4
	Loss from discontinued operations, net of tax			(42.1		)	42.1				—
	Net income			75.6			(64.2		)		11.4
	Preferred stock dividends			10.4			—				10.4
	Net income applicable to common shareowners			$	65.2		$	(64.2	)		$	1.0
	Weighted average diluted common shares			209.6			209.6				209.6
	Diluted earnings per common share*			$	0.31		$	(0.31	)		$	0.00
	Normalized results have been adjusted for the following (pretax adjustments are tax effected at 36%):
A	Employee contract termination costs associated with integrating IT Services and Hardware segment with Entertainment and Communications business markets.
B	Restructuring reversals of $1.4 million associated with a lease abandonment reserve for vacant floors that were reoccupied offset by $1.0 million of severance costs associated with outsourcing a portion of our IT function.
C	Gain on sale of wireline copper cabling.
D	Abandonment of internal use software project.
E	Transaction costs were incurred for legal fees associated with the sale of our wireless assets.
F	Loss on extinguishment of debt related to the redemption of $325.0 million 8 3/4% Senior Subordinated Notes due 2018 on August 8, 2014 at a redemption rate of 104.375% and due to $22.7 million of the outstanding 8 3/8% Senior Notes due 2020 redeemed on October 1, 2014 at par.
G	Gain on sale of CyrusOne investment.
*	Diluted 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.
Reconciliation of Operating Income (GAAP) Guidance to Adjusted EBITDA (Non-GAAP) Guidance
(Unaudited)
(Dollars in millions)
	2016 Operating Income (GAAP) Guidance	$	105
	Add:
	Depreciation and amortization	180
	Pension and other retirement plan expenses	15
	Other	3
	2016 Adjusted EBITDA (Non-GAAP) Guidance	$	303	*
	* Plus or minus 2 percent

CONTACT:

Cincinnati Bell Inc.

Investor contact:

Josh Duckworth, 513-397-2292

Joshua.Duckworth@cinbell.com

Media contact:

Jane Weiler, 513-397-9941

Jane.Weiler@cinbell.com

EX-99.2

Cincinnati Bell Fourth Quarter 2015 Results February 18, 2016

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

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

Non GAAP Financial Measures 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. 4

Ted Torbeck President & Chief Executive Officer 5

Impressive Financial Results ▪ Strategic revenues increased more than 20% from a year ago ▪ Fioptics revenue totaled $191 million, up 34% compared to 2014 ▪ Adjusted EBITDA totaled $302 million - high-end of 2015 guidance Closed Wireless operations ▪ No subscribers remaining on the network as of March 31, 2015 ▪ Recognized $113 million gain previously deferred ▪ Transfer of certain tower lease liabilities valued at approximately $25 million (April 1, 2015) 2015 Highlights 6 Monetization of CyrusOne Investment ▪ Proceeds from monetization of CyrusOne investment totaled $644 million in 2015 ▪ Proceeds used to repay more than $500 million in debt ▪ Remaining 9.5% ownership valued at approximately $250 million

YTD 2014 YTD 2015 $291 $344 $240 $224 $294 $257 Intercompany Backhaul YTD 2014 YTD 2015 $289 $254 Legacy IntegrationStrategic Business & Carrier Market Update Total Business & Carrier Market Revenue ▪ Revenue from business and carrier customers accounts for more than 70% of consolidated revenue Entertainment & Communications Revenue IT Services & Hardware Revenue Net of intercompany eliminations Y/Y (13)% (7)% 18% 7 ($ in millions) [2] [1] [1] [2] [1] Revenue for backhaul services provided to our discontinued wireless operations totaled $14 million in 2014 and $3 million in 2015 Entertainment & Communications Integration revenue totaled $5 million in 2014 and $3 million in 2015 [3] [1] [3] $839 $828 YTD 2014 YTD 2015 $158 $172 $240 $224 $417 $402 Y/Y (7)% 9% $422 $426 Y/Y (12)% 29% $133 $172

Q4 2014 Q4 2015 91 114114 154 61 77 YTD 2014 YTD 2015 $144 $191 $167 $142 Consumer Market Update ▪ Fioptics Penetration: Video – 26%, Internet – 36%, Voice – 18% ▪ Fioptics monthly ARPU for the quarter was up approximately 4% from 2014. Q4 2015 ARPUs are as follows: Video – $81, Internet – $45, Voice – $29 ▪ Total video churn was 2.5% for the quarter Single-family churn was 2.1% Apartment churn was 4.6% 8 ▪ Fioptics revenue for the year totaled $191 million, up 34% compared to the prior year ▪ Fioptics is available to 432k addresses, or 53% of Greater Cincinnati Passed 97,000 new addresses in 2015 $323 $340 Entertainment & Communications Revenue Y/Y (15)% 33% ($ in millions) Total Fioptics Subscribers (in thousands) [2] Fioptics revenue includes $8 million in 2014 and $10 million in 2015 from business customers [3] Integration revenue totaled $12 million in 2014 and $7 million in 2015 [3] Legacy IntegrationStrategic [2] Internet Subs Voice SubsVideo Subs __ __ __ __ __ [1] Net of intercompany eliminations [1]

Leigh Fox Chief Financial Officer 9

$283 $37 $(18) QTD 2015 $188 $104 $(3) Revenue Financial Summary $302 ($ in millions) Entertainment & Communications IT Services & Hardware CorporateEliminations 10 $289 Adjusted EBITDA ▪ Total revenue of $1.2 billion in 2015, up $6 million year-over-year ▪ Strong Adjusted EBITDA of $302 million ▪ Income from continuing operations totaled $291 million – including a $449 million gain on the sale of our CyrusOne investment and a $21 million loss on extinguishment of debt ▪ Net income for the year totaled $354 million, resulting in diluted earnings per share of $1.63 $69 $9 $(7) Adjusted EBITDA YTD 2015 $744 $435 $(11) $1,168 $71 Revenue QTD 2015 YTD 2015

Revenue Adjusted $80 $97 $73 ($ in millions) Entertainment & Communications Revenue and Adjusted EBITDA Integration Strategic Legacy 11 Integration revenue totaled $8 million in Q4 2014 and $2 million in Q4 2015 ▪ Consumer revenue totaled $90 million in Q4 2015, up 5% compared to the prior year ▪ Business and carrier revenues totaled $98 million in Q4 2015, down 2% after excluding intercompany backhaul revenue ▪ Adjusted EBITDA Margin for Q4 2015 was 37% - consistent recent quarterly results ▪ 5,600 video and 6,100 total internet subscriber additions in Q4 2015 ▪ Voice line loss was 4% – improved from 6% in the prior year Business lines decreased 1% Residential line decreased 9%Intercompany Backhaul Revenue for backhaul services provided to our discontinued wireless operations totaled $3 million in Q4 2014 [1] [2] [1] [2] $188 EBITDA Revenue Adjusted $98 $88 $69 $188 EBITDA __ __ Q4 2014 Q4 2015 [3] Includes Fioptics voice lines and VoIP lines[3]

Revenue Adjusted $37 $73 $7 ($ in millions) IT Services & Hardware Revenue and Adjusted EBITDA ▪ Revenue of $104 million for Q4 2015, down 5% from Q4 2014 Strategic Revenues totaled $48 million in Q4 2015, up 30% compared to the prior year Telecom & IT hardware revenue of $49 million for Q4 2015 was down from the prior year due to the cyclical nature of these sales ▪ Operating income and Adjusted EBITDA for the quarter totaled $5 million and $9 million, respectively ▪ Adjusted EBITDA margin was 9%, up from 6% a year ago. Integration RevenueStrategic Revenue $110 12 EBITDA Revenue Adjusted $48 $56 $9 EBITDA __ __ $104 Q4 2014 Q4 2015

Capital Structure LiquidityLeverage Ratio 13 ▪ Repaid more than $500 million of outstanding debt during 2015 ▪ Sold 1.4 million CyrusOne common shares in Q4 2015 for proceeds totaling $48 million ▪ Leverage as adjusted for our remaining 9.5% investment in CyrusOne is well within a reasonable range ▪ Current liquidity appropriate to achieve operational objectives [1] 2015 leverage calculated based on 2016 Adjusted EBITDA guidance [1] Q4 2015 Cash and Cash Equivalents $ 7 Corporate Credit Facility 175 Receivables Facility 90 Liquidity $ 272 Leverage Leverage Adj. for CONE Investment 2011 2012 2013 2014 2015 4.1 3.3 x x

2015 Free Cash Flow 14 ($ in millions) Certain 2016 Free Cash Flow Items ▪ Interest payments ~ $75 million ▪ Pension and OPEB payments ~ $12 million ▪ CyrusOne dividends ~ $9 million ▪ Capital Expenditures: $265 - $275 million Q4 2015 YTD 2015 Adjusted EBITDA $ 71 $ 302 Interest Payments (33) (109) Capital Expenditures (78) (284) Pension and OPEB Payments (3) (21) Dividends from CyrusOne 2 22 Working Capital and Other (15) (37) Free Cash Flow $ (56) $ (127)

Capital Expenditures ($ in millions) Q4 2015 2015 YTD 2016 Low High Construction $ 28 $ 87 $ 80 $ 80 Installation 15 50 50 50 Value Added 10 43 30 30 Total Fioptics $ 53 $ 180 $ 160 $ 160 Other Strategic 14 56 65 75 Total Strategic Investment 67 236 225 235 Total Maintenance 11 48 40 40 $ 78 $ 284 $ 265 $ 275 ▪ Invested $180 million in Fioptics in 2015: Construction costs totaled $87 million, passed 97,000 customer locations Available to approximately 53% of Greater Cincinnati ▪ Plan to pass 70,000 homes with Fioptics is 2016: Construction costs estimated to be approximately $80 million Goal is to pass 95% of new addresses directly with a fiber-to-the-home product Extends coverage to more than 60% of Greater Cincinnati ▪ Other strategic represents success-based capital for fiber builds for business and new IT services projects __ __ __ __ 15 __

2016 Guidance 2016 Guidance Revenue $ 1.2 billion Adjusted EBITDA $303 million* * Plus or minus 2 percent 16

Appendix 17

Consolidated Results 18 ($ in millions, except per share amounts) Three Months Twelve Months Ended December 31, Ended December 31, 2015 2014 2015 2014 Revenue $ 289.3 $ 294.9 $ 1,167.8 $ 1,161.5 Costs and expenses Cost of services and products 166.6 173.4 670.6 647.7 Selling, general and administrative 57.4 52.5 219.1 204.2 Depreciation and amortization 39.2 33.2 141.6 127.6 Restructuring charges (reversals) — (0.3) 6.0 (0.4) (Gain) loss on sale or disposal of assets, net 0.5 (0.2) 0.8 (0.3) Curtailment loss — — 0.3 — Impairment of assets — 4.6 — 4.6 Transaction costs 0.6 0.3 1.4 1.2 Operating Income 25.0 31.4 128.0 176.9 Interest expense 20.9 32.9 103.1 145.9 Loss on extinguishment of debt (0.4) 0.2 20.9 19.6 Loss from CyrusOne equity method investment (0.1) 5.1 5.1 7.0 Gain on sale of CyrusOne equity method investment (36.3) — (449.2) (192.8) Other income, net (3.3) (0.7) (2.5) (1.9) Income (loss) from continuing operations before income taxes 44.2 (6.1) 450.6 199.1 Income tax expense (benefit) 13.7 (1.7) 159.8 81.4 Income (loss) from continuing operations 30.5 (4.4) 290.8 117.7 Income (loss) from discontinued operations, net of tax 2.1 (13.9) 62.9 (42.1) Net income (loss) 32.6 (18.3) 353.7 75.6 Preferred stock dividends 2.6 2.6 10.4 10.4 Net income (loss) applicable to common shareholders $ 30.0 $ (20.9) $ 343.3 $ 65.2 Basic net earnings (loss) per common share Earnings (loss) from continuing operations $ 0.13 $ (0.03) $ 1.34 $ 0.51 Earnings (loss) from discontinued operations 0.01 (0.07) 0.30 (0.20) Basic net earnings (loss) per common share $ 0.14 $ (0.10) $ 1.64 $ 0.31 Diluted net earnings (loss) per common share Earnings (loss) from continuing operations $ 0.13 $ (0.03) $ 1.33 $ 0.51 Earnings (loss) from discontinued operations 0.01 (0.07) 0.30 (0.20) Diluted net earnings (loss) per common share $ 0.14 $ (0.10) $ 1.63 $ 0.31

Revenue Classifications - Entertainment and Communications 19 Strategic Legacy Integration Data Fioptics Internet DSL (1) (> 10 meg) Ethernet Private Line MPLS (2) SONET (3) Dedicated Internet Access Wavelength Audio Conferencing DSL (< 10 meg) DS0 (5), DS1, DS3 TDM (6) Voice Fioptics Voice VoIP (4) Traditional Voice Long Distance Switched Access Digital Trunking Video Fioptics Video Services and Other Wiring Projects Advertising Directory Assistance Maintenance Information Services Wireless Handsets and Accessories (1) Digital Subscriber Line (2) Multi-Protocol Label Switching (3) Synchronous Optical Network (4) Voice of Internet Protocol (5) Digital Signal (6) Time Division Multiplexing

Revenue Classifications - IT Services and Hardware 20 Strategic Integration Professional Services Consulting Staff Augmentation Installation Unified Communications Voice Monitoring Managed IP Telephony Solutions Maintenance Cloud Services Virtual Data Centers Storage Backup Monitoring and Management Network Monitoring/Management Security Telecom & IT Hardware Hardware Software Licenses

Revenue – MD&A Strategic, Legacy and Integration 21 ($ in millions) Q4 2015 Entertainment and Communications IT Services and Hardware Total Eliminations Total Strategic Data $ 52.9 $ — Voice 16.3 — Video 27.3 — Services and other 1.7 — Professional services — 23.3 Management and monitoring — 8.1 Unified communications — 7.0 Cloud services — 9.7 Total Strategic 98.2 48.1 146.3 (2.3) 144.0 Legacy Data $ 28.6 $ — Voice 54.3 — Services and other 4.8 — Total Legacy 87.7 — 87.7 (0.3) 87.4 Integration Services and other $ 1.9 $ — Professional services — 4.4 Unified communications — 2.6 Telecom and IT hardware — 49.4 Total Integration 1.9 56.4 58.3 (0.4) 57.9 Total Revenue $ 187.8 $ 104.5 $ 292.3 $ (3.0) $ 289.3 Eliminations 0.4 2.6 3.0 $ 187.4 $ 101.9 $ 289.3 21

Revenue – MD&A Strategic, Legacy and Integration 22 ($ in millions) 22 Q4 2014 Entertainment and Communications IT Services and Hardware Total Eliminations Total Strategic Data $ 45.5 $ — Voice 14.1 — Video 21.0 — Services and other 1.9 — Professional services — 18.3 Management and monitoring — 6.8 Unified communications — 6.2 Cloud services — 5.7 Total Strategic 82.5 37.0 119.5 (1.8) 117.7 Legacy Data $ 32.2 $ — Voice 61.3 — Services and other 4.3 — Total Legacy 97.8 — 97.8 — 97.8 Integration Services and other $ 8.1 $ — Professional services — 4.5 Management and monitoring 0.1 Unified communications — 3.0 Telecom and IT hardware — 64.9 Total Integration 8.1 72.5 80.6 (1.2) 79.4 Total Revenue $ 188.4 $ 109.5 $ 297.9 $ (3.0) $ 294.9 Eliminations 0.4 2.6 3.0 $ 188.0 $ 106.9 $ 294.9

Revenue – MD&A Strategic, Legacy and Integration 23 ($ in millions) 23 YTD 2015 Entertainment and Communications IT Services and Hardware Total Eliminations Total Strategic Data $ 200.0 $ — Voice 62.2 — Video 96.6 — Services and other 6.9 — Professional services — 90.4 Management and monitoring — 31.0 Unified communications — 27.1 Cloud services — 30.9 Total Strategic 365.7 179.4 545.1 (8.5) 536.6 Legacy Data $ 122.8 $ — Voice 229.7 — Services and other 15.2 — Total Legacy 367.7 — 367.7 (0.8) 366.9 Integration Services and other $ 10.3 $ — Professional services — 15.1 Unified communications — 10.7 Telecom and IT hardware — 230.2 Total Integration 10.3 256.0 266.3 (2.0) 264.3 Total Revenue $ 743.7 $ 435.4 $ 1,179.1 $ (11.3) $ 1,167.8 Eliminations 1.3 10.0 11.3 $ 742.4 $ 425.4 $ 1,167.8

Revenue – MD&A Strategic, Legacy and Integration 24 ($ in millions) 24 YTD 2014 Entertainment and Communications IT Services and Hardware Total Eliminations Total Strategic Data $ 173.6 $ — Voice 53.6 — Video 75.5 — Services and other 7.8 — Professional services — 70.2 Management and monitoring — 24.8 Unified communications — 22.9 Cloud services — 20.8 Total Strategic 310.5 138.7 449.2 (7.5) 441.7 Legacy Data $ 136.0 $ — Voice 259.9 — Services and other 18.4 — Total Legacy 414.3 — 414.3 — 414.3 Integration Services and other $ 15.9 $ — Professional services — 16.4 Unified communications — 12.2 Management and monitoring 0.4 Telecom and IT hardware — 265.3 Total Integration 15.9 294.3 310.2 (4.7) 305.5 Total Revenue $ 740.7 $ 433.0 $ 1,173.7 $ (12.2) $ 1,161.5 Eliminations 1.2 11.0 12.2 $ 739.5 $ 422.0 $ 1,161.5