8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report: August 4, 2017

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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Securities Act. o

Section 2 - Financial Information

Item 2.02Results of Operations and Financial Condition

On August 4, 2017, Cincinnati Bell Inc. reported its financial results for the second quarter 2017. The earnings release is attached as Exhibit 99.1.

Section 7 - Regulation FD

Item 7.01     Regulation FD Disclosure

On August 4, 2017, Leigh R. Fox, the Company's president and chief executive officer, and Andrew R. Kaiser, the Company's chief financial officer, will present second quarter 2017 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 August 4, 2017
	Exhibit 99.2	Presentation made during the Cincinnati Bell second quarter 2017 earnings conference call on August 4, 2017

Cautionary Statement Concerning Forward-Looking Statements

This report and the documents incorporated by reference herein contain forward-looking statements regarding future events and results that are subject to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, are statements that could be deemed forward-looking statements. These statements are based on current expectations, estimates, forecasts, and projections about the industries in which we operate and the beliefs and assumptions of our management. Words such as “expects,” “anticipates,” “predicts,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “continues,” “endeavors,” “strives,” “may,” or variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, any statements that refer to projections of future financial performance, anticipated growth and trends in businesses, and other characterizations of future events or circumstances are forward-looking statements. Readers are cautioned these forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties, which could cause actual results to differ materially and adversely from those reflected in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in this release and those discussed in other documents the company filed with the Securities and Exchange Commission (SEC). More information on potential risks and uncertainties is available in our recent filings with the SEC, including Cincinnati Bell's Form 10-K report, Form 10-Q reports and Form 8-K reports. Actual results may differ materially and adversely from those expressed in any forward-looking statements. The company undertakes no obligation to revise or update any forward-looking statements for any reason. The forward-looking statements included in this report represent company estimates as of August 4, 2017. Cincinnati Bell anticipates that subsequent events and developments will cause its estimates to change.

SIGNATURES

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

		CINCINNATI BELL INC.
Date:	August 4, 2017	By:	/s/ Christopher J. Wilson
			Christopher J. Wilson
			Vice President and General Counsel

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press release dated August 4, 2017
99.2	Presentation made during the Cincinnati Bell second quarter 2017 earnings conference call on August 4, 2017

EX-99.1

Cincinnati Bell Reports Second Quarter 2017 Results

HIGHLIGHTS

• Strategic revenue of $171 million, up 9% year-over-year, highlighting continued strong demand for Fioptics and cloud services

• Entertainment and Communications revenue of $201 million, up 5% year-over-year

• Fioptics internet subscribers up 22% and Fioptics video subscribers up 13% year-over-year

• Cash provided by operating activities totaled $123 million year-to-date, up $25 million year-over-year

• Free cash flows¹ totaled $30 million year-to-date, up $47 million compared to the prior year

• Announced planned mergers with Hawaiian Telcom and OnX Enterprise Solutions to accelerate Cincinnati Bell's leadership in fiber growth and IT cloud migration through enhanced scale and diversification

CINCINNATI - August 4, 2017 - Cincinnati Bell Inc. (NYSE:CBB), today announced financial results for its second quarter, ended June 30, 2017.

Leigh Fox, President and Chief Executive Officer of Cincinnati Bell, commented, "Our strong financial performance this quarter demonstrates our ability to continue to win with fiber as we successfully transition customers to an infrastructure that supports high-density data transmission. We are also encouraged by the continued demand for our strategic IT solutions and cloud services as we transition to becoming a leading cloud integrator for both voice and data. Importantly, the recently announced combinations with Hawaiian Telcom and OnX provide increased geographic and customer diversification to further capitalize on these secular trends.”

CONSOLIDATED RESULTS

Consolidated revenue for the second quarter of 2017 was $294 million, down 2% from the prior year as strategic revenue growth was offset by lower Telecom and IT hardware sales and legacy declines.

Operating income was $21 million in the second quarter of 2017, compared to $27 million in the prior year period. The decline was primarily driven by $4 million of restructuring and severance related charges associated with cost-out initiatives, and $2 million of transaction costs incurred in the second quarter of 2017. The Company anticipates the restructuring and related cost-out initiatives will generate cash savings of more than $10 million annually. Adjusted EBITDA²totaled $77 million for the second quarter of 2017, increasing 1% year-over-year.

Net income for the second quarter of 2017 totaled $2 million, resulting in a net loss per diluted share of $0.01. 

Entertainment and Communications Segment

• Entertainment and Communications revenue of $201 million, up $9 million year-over-year, including $5 million of revenue from a one-time fiber build project completed in the second quarter

• Fioptics revenue of $77 million, up 24% year-over-year

– Q2 Fioptics internet subscribers totaled 214,100, up 22% year-over-year

– Q2 Fioptics video subscribers were 142,800, up 13% year-over-year

• Strategic business and carrier revenue of $57 million, up 16% year-over-year 

• Operating income of $26 million, compared to $27 million in the prior year

• Adjusted EBITDA of $74 million, up 3% year-over-year

Year-to-date, the Company passed an additional 23,300 new addresses with its Fioptics suite of products, which is now available to 556,700 homes and businesses, reaching approximately 70% of Greater Cincinnati. Cincinnati Bell’s continued investments in fiber further differentiate the Company from traditional carriers in a heightened competitive environment, and allow the Company to offer higher bandwidth and faster internet speed than its competition.

In an extension of its strategic investment in fiber assets, during the second quarter of 2017, Cincinnati Bell announced its pending merger with Hawaiian Telcom, the leading integrated communications provider serving the state of Hawaii, for a total consideration of approximately $650 million including net debt of Hawaiian Telcom as of March 31, 2017. The combination with Hawaiian Telcom is an important step toward building scale and locking in fiber density value for shareholders and customers, as Cincinnati Bell continues to anticipate and capitalize on the growing demand for fiber capacity.

IT Services and Hardware Segment

• IT Services and Hardware revenue of $96 million, up $10 million sequentially, and down $14 million year-over-year

– Strategic revenue of $42 million, down $2 million sequentially and down $7 million year-over-year, reflecting increased insourcing of IT services in the Company's market

– Telecom and IT hardware sales of $45 million, up $9 million sequentially

• Cloud Services revenue of $12 million, up 7% year-over-year

• Operating income of $1 million and Adjusted EBITDA of $7 million both decreased compared to the prior year due to a decline in revenue and increased costs associated with the expansion of the Company's national footprint

Cincinnati Bell recently announced its pending acquisition of OnX Enterprise Solutions, a technology services and solutions provider in North America and the United Kingdom, for a total consideration of $201 million. The acquisition of OnX supports the Company's transformation to a Hybrid IT provider, and is expected to add meaningful scale, service offerings, free cash flow generation, and customer diversification to Cincinnati Bell's growing IT Services and Hardware business. The expansion of the Company's geographic footprint in IT services and its ability to capitalize on the growing demand for its strategic IT solutions and Cloud Services are critical elements of the Company’s future growth strategy.

Financial Position and Cash Flow

The Company reported cash provided by operating activities of $123 million in the first six months of 2017, compared to $98 million in the same period last year. Free cash flow increased $47 million compared to the first six months of 2016 totaling $30 million for the first half of 2017. Capital expenditures were $105 million in the first half of 2017, compared to $122 million in the same period last year. The Company continues to expect full year 2017 capital expenditures to range between $180 million and $210 million.

As previously announced, Cincinnati Bell has secured committed financing, subject to customary closing conditions, from Morgan Stanley Senior Funding, Inc. and certain other arrangers, to fund a portion of the cash consideration of the Hawaiian Telcom and OnX transactions, to refinance Cincinnati Bell's term loan and Hawaiian Telcom's existing debt, and to pay related fees and expenses. Cincinnati Bell's net leverage (net debt divided by Adjusted EBITDA) is expected to remain in-line with current levels, including run-rate synergies following the transactions. Cincinnati Bell is also exploring the possibility of replacing a portion of the secured committed term loan with unsecured senior notes, subject to market conditions.

2017 Outlook

Based on its year-to-date results and current outlook for the year, Cincinnati Bell reaffirms its previous 2017 financial guidance, provided on February 15, 2017:

Category	2017 Guidance
Revenue	$1.2 billion
Adjusted EBITDA	$295 million*

*Plus or minus 2 percent

This guidance does not include any contribution from pending mergers.

Mr. Fox concluded, “We are confident in our ability to achieve our objectives for the year and capitalize on the fast-growing demand for our strategic fiber and cloud services offerings. Looking ahead, we believe the mergers with Hawaiian Telcom and OnX will provide significant geographic and customer

diversification opportunities, and we expect the creation of two distinct assets with strategic optionality to generate strong operating performance and maximize shareholder value.”

Conference Call/Webcast

Cincinnati Bell will host a conference call on August 4, 2017 at 10:00 a.m. (ET) to discuss its results for the second quarter of 2017. 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) 287-5563. Callers located outside of the U.S. and Canada may dial (719) 325-4925. 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 Friday, August 18, 2017. 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 5530931. An archived version of the webcast will also be available in the Investor Relations section of www.cincinnatibell.com.

Safe Harbor Note

This release may contain “forward-looking” statements, as defined in federal securities laws including the Private Securities Litigation Reform Act of 1995, which are based on our current expectations, estimates, forecasts and projections. Statements that are not historical facts, including statements about the beliefs, expectations and future plans and strategies of the Company, are forward-looking statements. Actual results may differ materially from those expressed in any forward-looking statements. The following important factors, among other things, could cause or contribute to actual results being materially and adversely different from those described or implied by such forward-looking statements including, but not limited to: those discussed in this release; we operate in highly competitive industries, and customers may not continue to purchase products or services, which would result in reduced revenue and loss of market share; we may be unable to grow our revenues and cash flows despite the initiatives we have implemented; failure to anticipate the need for and introduce new products and services or to compete with new technologies may compromise our success in the telecommunications industry; our access lines, which generate a significant portion of our cash flows and profits, are decreasing in number and if we continue to experience access line losses similar to the past several years, our revenues, earnings and cash flows from operations may be adversely impacted; our failure to meet performance standards under our agreements could result in customers terminating their relationships with us or customers being entitled to receive financial compensation, which would lead to reduced revenues and/or increased costs; we generate a substantial portion of our revenue by serving a limited geographic area; a large customer accounts for a significant portion of our revenues and accounts receivable and the loss or significant reduction in business from this customer would cause operating revenues to decline and could negatively impact profitability and cash flows; maintaining our telecommunications networks requires significant capital expenditures, and our inability or failure to maintain our telecommunications networks

could have a material impact on our market share and ability to generate revenue; increases in broadband usage may cause network capacity limitations, resulting in service disruptions or reduced capacity for customers; we may be liable for material that content providers distribute on our networks; cyber attacks or other breaches of network or other information technology security could have an adverse effect on our business; natural disasters, terrorists acts or acts of war could cause damage to our infrastructure and result in significant disruptions to our operations; the regulation of our businesses by federal and state authorities may, among other things, place us at a competitive disadvantage, restrict our ability to price our products and services and threaten our operating licenses; we depend on a number of third party providers, and the loss of, or problems with, one or more of these providers may impede our growth or cause us to lose customers; a failure of back-office information technology systems could adversely affect our results of operations and financial condition; if we fail to extend or renegotiate our collective bargaining agreements with our labor union when they expire or if our unionized employees were to engage in a strike or other work stoppage, our business and operating results could be materially harmed; the loss of any of the senior management team or attrition among key sales associates could adversely affect our business, financial condition, results of operations and cash flows; our debt could limit our ability to fund operations, raise additional capital, and fulfill our obligations, which, in turn, would have a material adverse effect on our businesses and prospects generally; our indebtedness imposes significant restrictions on us; we depend on our loans and credit facilities to provide for our short-term financing requirements in excess of amounts generated by operations, and the availability of those funds may be reduced or limited; the servicing of our indebtedness is dependent on our ability to generate cash, which could be impacted by many factors beyond our control; we depend on the receipt of dividends or other intercompany transfers from our subsidiaries and investments; the trading price of our common shares may be volatile, and the value of an investment in our common shares may decline; the uncertain economic environment, including uncertainty in the U.S. and world securities markets, could impact our business and financial condition; our future cash flows could be adversely affected if it is unable to fully realize our deferred tax assets; adverse changes in the value of assets or obligations associated with our employee benefit plans could negatively impact shareowners’ deficit and liquidity; third parties may claim that we are infringing upon their intellectual property, and we could suffer significant litigation or licensing expenses or be prevented from selling products; third parties may infringe upon our intellectual property, and we may expend significant resources enforcing our rights or suffer competitive injury; we could be subject to a significant amount of litigation, which could require us to pay significant damages or settlements; we could incur significant costs resulting from complying with, or potential violations of, environmental, health and human safety laws; the timing and likelihood of completion of our proposed mergers with Hawaiian Telcom and OnX, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals for the proposed transactions that couldreduce anticipated benefits or cause the parties to abandon the transactions; the possibility that Hawaiian Telcom’s stockholders may not approve the proposed merger; the possibility that

competing offers or acquisition proposals for Hawaiian Telcom will be made; the occurrence of any event, change or other circumstance that could give rise to the termination of the proposed transactions; the possibility that the expected synergies and value creation from the proposed transactions will not be realized or will not be realized within the expected time period; the risk that the businesses of the Company and Hawaiian Telcom and OnX will not be integrated successfully; disruption from the proposed transactions making it more difficult to maintain business and operational relationships; the risk that unexpected costs will be incurred; and the possibility that the proposed transactions do not close, including due to the failure to satisfy the closing conditions and the other risks and uncertainties detailed in our filings, including our Form 10-K, with the SEC as well as Hawaiian Telcom’s filings, including its Form 10-K, with the SEC.

These forward-looking statements are based on information, plans and estimates as of the date hereof and there may be other factors that may cause our actual results to differ materially from these forward-looking statements. We assume no obligation to update the information contained in this release except as required by applicable law.

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.

¹Free 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 activities, adjusted for capital expenditures, restructuring and severance related payments, preferred stock dividends, dividends received from CyrusOne, cash used in or (provided by) discontinued operations, including the decommission of wireless towers, and 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 there is no comparable GAAP measure for free cash flow, the attached financial information reconciles cash provided by operating activities to free cash flow.

²Adjusted EBITDA provides a useful measure of operational performance. The company defines Adjusted EBITDA as GAAP operating income plus depreciation, amortization, restructuring and severance related 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.

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.

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, unamortized premium and/or discount and unamortized note issuance costs, offset by cash and cash equivalents.

Net income applicable to common shareholders excluding special items in total and per share provides a useful measure of operating performance. Net income applicable to common shareholders 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										Six Months Ended
				June 30,						Change				June 30,						Change
				2017			2016			$			%	2017			2016			$			%
	Revenue			$	294.0		$	299.2		$	(5.2	)	(2)%	$	572.2		$	588.1		$	(15.9	)	(3)%
	Costs and expenses
		Cost of services and products		165.4			170.8			(5.4		)	(3)%	320.2			333.5			(13.3		)	(4)%
		Selling, general and administrative		55.4			56.2			(0.8		)	(1)%	112.1			109.4			2.7			2%
		Depreciation and amortization		47.0			44.8			2.2			5%	92.8			88.2			4.6			5%
		Restructuring and severance related charges		3.6			—			3.6			n/m	29.2			—			29.2			n/m
		Other		1.7			—			1.7			n/m	2.3			—			2.3			n/m
			Operating income	20.9			27.4			(6.5		)	(24)%	15.6			57.0			(41.4		)	(73)%
	Interest expense			18.1			19.9			(1.8		)	(9)%	36.1			40.2			(4.1		)	(10)%
	Loss on extinguishment of debt, net			—			5.2			(5.2		)	n/m	—			2.8			(2.8		)	n/m
	Gain on sale of Investment in CyrusOne			—			(118.6		)	118.6			n/m	(117.7		)	(118.6		)	0.9			(1)%
	Other income, net			(0.6		)	(1.1		)	0.5			(45)%	(1.0		)	(1.1		)	0.1			(9)%
	Income before income taxes			3.4			122.0			(118.6		)	(97)%	98.2			133.7			(35.5		)	(27)%
	Income tax expense			1.3			44.4			(43.1		)	(97)%	35.7			49.1			(13.4		)	(27)%
	Net income			2.1			77.6			(75.5		)	(97)%	62.5			84.6			(22.1		)	(26)%
	Preferred stock dividends			2.6			2.6			—			0%	5.2			5.2			—			0%
	Net (loss) income applicable to common shareowners			$	(0.5	)	$	75.0		$	(75.5	)	n/m	$	57.3		$	79.4		$	(22.1	)	(28)%
	Basic net (loss) earnings per common share			$	(0.01	)	$	1.79						$	1.36		$	1.89
	Diluted net (loss) earnings per common share			$	(0.01	)	$	1.78						$	1.35		$	1.89
	Weighted average common shares outstanding
		(in millions)
		- Basic		42.2			42.0							42.1			42.0
		- Diluted		42.2			42.1							42.3			42.1

Cincinnati Bell Inc.
Income Statements by Segment
(Unaudited)
(Dollars in millions)
			Three Months Ended								Six Months Ended
			June 30,				Change				June 30,				Change
			2017		2016		$			%	2017		2016		$			%
	Entertainment and Communications
	Revenue
		Data	$	87.7	$	86.8	$	0.9		1%	$	175.3	$	172.0	$	3.3		2%
		Voice	67.1		69.1		(2.0		)	(3)%	134.8		139.3		(4.5		)	(3)%
		Video	37.2		30.9		6.3			20%	73.2		59.9		13.3			22%
		Services and Other	9.4		5.7		3.7			65%	13.4		11.6		1.8			16%
		Total revenue	201.4		192.5		8.9			5%	396.7		382.8		13.9			4%
	Operating costs and expenses
		Cost of services and products	95.8		88.3		7.5			8%	189.1		176.1		13.0			7%
		Selling, general and administrative	34.7		35.4		(0.7		)	(2)%	70.7		70.0		0.7			1%
		Depreciation and amortization	43.2		41.6		1.6			4%	85.2		81.8		3.4			4%
		Other*	1.3		—		1.3			n/m	26.9		—		26.9			n/m
		Total operating costs and expenses	175.0		165.3		9.7			6%	371.9		327.9		44.0			13%
	Operating income		$	26.4	$	27.2	$	(0.8	)	(3)%	$	24.8	$	54.9	$	(30.1	)	(55)%
	IT Services and Hardware
	Revenue
		Professional Services	$	23.5	$	27.2	$	(3.7	)	(14)%	$	45.2	$	53.4	$	(8.2	)	(15)%
		Management and Monitoring	5.1		7.9		(2.8		)	(35)%	10.1		16.0		(5.9		)	(37)%
		Unified Communications	11.0		10.1		0.9			9%	20.9		20.2		0.7			3%
		Cloud Services	11.6		10.8		0.8			7%	25.3		21.0		4.3			20%
		Telecom and IT hardware	44.8		53.8		(9.0		)	(17)%	80.7		101.7		(21.0		)	(21)%
		Total revenue	96.0		109.8		(13.8		)	(13)%	182.2		212.3		(30.1		)	(14)%
	Operating costs and expenses
		Cost of services and products	72.7		85.5		(12.8		)	(15)%	137.4		164.1		(26.7		)	(16)%
		Selling, general and administrative	16.7		14.2		2.5			18%	31.9		27.7		4.2			15%
		Depreciation and amortization	3.7		3.2		0.5			16%	7.5		6.4		1.1			17%
		Other*	2.3		—		2.3			n/m	2.3		—		2.3			n/m
		Total operating costs and expenses	95.4		102.9		(7.5		)	(7)%	179.1		198.2		(19.1		)	(10)%
	Operating income		$	0.6	$	6.9	$	(6.3	)	(91)%	$	3.1	$	14.1	$	(11.0	)	(78)%
		* Other includes restructuring and severance related charges.

Cincinnati Bell Inc.
Revenues by Segment
(Unaudited)
(Dollars in millions)
				Three Months Ended								Six Months Ended
				June 30,				Change				June 30,				Change
				2017		2016		$			%	2017		2016		$			%
Entertainment and Communications
	Consumer
		Strategic
			Data	$	31.2	$	25.2	$	6.0		24%	$	61.0	$	48.7	$	12.3		25%
			Voice	6.1		5.4		0.7			13%	12.0		10.6		1.4			13%
			Video	36.5		30.4		6.1			20%	71.9		58.9		13.0			22%
			Services and other	0.4		0.9		(0.5		)	(56)%	0.8		1.8		(1.0		)	(56)%
				74.2		61.9		12.3			20%	145.7		120.0		25.7			21%
		Legacy
			Data	9.0		11.8		(2.8		)	(24)%	18.6		24.0		(5.4		)	(23)%
			Voice	16.9		18.7		(1.8		)	(10)%	34.7		38.5		(3.8		)	(10)%
			Services and other	0.7		1.1		(0.4		)	(36)%	1.5		2.2		(0.7		)	(32)%
				26.6		31.6		(5.0		)	(16)%	54.8		64.7		(9.9		)	(15)%
		Integration
			Services and other	—		1.0		(1.0		)	n/m	0.1		2.1		(2.0		)	(95)%
	Total consumer revenue			$	100.8	$	94.5	$	6.3		7%	$	200.6	$	186.8	$	13.8		7%
	Business
		Strategic
			Data	$	24.9	$	24.0	$	0.9		4%	$	49.8	$	47.6	$	2.2		5%
			Voice	15.4		12.5		2.9			23%	30.0		24.5		5.5			22%
			Video	0.7		0.5		0.2			40%	1.3		1.0		0.3			30%
			Services and other	0.6		0.5		0.1			20%	1.1		0.9		0.2			22%
				41.6		37.5		4.1			11%	82.2		74.0		8.2			11%
		Legacy
			Data	4.7		5.1		(0.4		)	(8)%	9.2		10.5		(1.3		)	(12)%
			Voice	24.7		28.4		(3.7		)	(13)%	50.1		57.4		(7.3		)	(13)%
			Services and other	0.2		0.3		(0.1		)	(33)%	0.5		0.6		(0.1		)	(17)%
				29.6		33.8		(4.2		)	(12)%	59.8		68.5		(8.7		)	(13)%
		Integration
			Services and other	0.4		0.5		(0.1		)	(20)%	0.7		0.9		(0.2		)	(22)%
	Total business revenue			$	71.6	$	71.8	$	(0.2	)	0%	$	142.7	$	143.4	$	(0.7	)	0%
	Carrier
		Strategic
			Data	$	10.1	$	11.6	$	(1.5	)	(13)%	$	20.8	$	22.6	$	(1.8	)	(8)%
			Services and other	5.4		—		5.4			n/m	5.4		—		5.4			n/m
				15.5		11.6		3.9			34%	26.2		$	22.6	3.6			16%
		Legacy
			Data	7.8		9.1		(1.3		)	(14)%	15.9		18.6		(2.7		)	(15)%
			Voice	4.0		4.1		(0.1		)	(2)%	8.0		8.3		(0.3		)	(4)%
			Services and other	1.7		1.4		0.3			21%	3.3		3.1		0.2			6%
				13.5		14.6		(1.1		)	(8)%	27.2		30.0		(2.8		)	(9)%
	Total carrier revenue			$	29.0	$	26.2	$	2.8		11%	$	53.4	$	52.6	$	0.8		2%
Total Entertainment and Communications				$	201.4	$	192.5	$	8.9		5%	$	396.7	$	382.8	$	13.9		4%

Cincinnati Bell Inc.
Revenues by Segment
(Unaudited)
(Dollars in millions)
				Three Months Ended								Six Months Ended
				June 30,				Change				June 30,				Change
				2017		2016		$			%	2017		2016		$			%
IT Services and Hardware
	Business
		Strategic
			Professional Services	$	18.4	$	23.1	$	(4.7	)	(20)%	$	36.7	$	45.4	$	(8.7	)	(19)%
			Management and Monitoring	5.1		7.9		(2.8		)	(35)%	10.1		16.0		(5.9		)	(37)%
			Unified Communications	7.4		7.3		0.1			1%	14.5		14.8		(0.3		)	(2)%
			Cloud Services	11.6		10.8		0.8			7%	25.3		21.0		4.3			20%
				42.5		49.1		(6.6		)	(13)%	86.6		97.2		(10.6		)	(11)%
		Integration
			Professional Services	5.1		4.1		1.0			24%	8.5		8.0		0.5			6%
			Unified Communications	3.6		2.8		0.8			29%	6.4		5.4		1.0			19%
			Telecom and IT hardware	44.8		53.8		(9.0		)	(17)%	80.7		101.7		(21.0		)	(21)%
				53.5		60.7		(7.2		)	(12)%	95.6		115.1		(19.5		)	(17)%
Total IT Services and Hardware Revenue				$	96.0	$	109.8	$	(13.8	)	(13)%	$	182.2	$	212.3	$	(30.1	)	(14)%

Cincinnati Bell Inc.
Segment Information
(Unaudited)
(Dollars in millions)
			Three Months Ended										Six Months Ended
			June 30,						Change				June 30,						Change
			2017			2016			$			%	2017			2016			$			%
	Revenue
		Entertainment and Communications	$	201.4		$	192.5		$	8.9		5%	$	396.7		$	382.8		$	13.9		4%
		IT Services and Hardware	96.0			109.8			(13.8		)	(13)%	182.2			212.3			(30.1		)	(14)%
		Eliminations	(3.4		)	(3.1		)	(0.3		)	10%	(6.7		)	(7.0		)	0.3			(4)%
		Total revenue	$	294.0		$	299.2		$	(5.2	)	(2)%	$	572.2		$	588.1		$	(15.9	)	(3)%
	Cost of Services and Products
		Entertainment and Communications	$	95.8		$	88.3		$	7.5		8%	$	189.1		$	176.1		$	13.0		7%
		IT Services and Hardware	72.7			85.5			(12.8		)	(15)%	137.4			164.1			(26.7		)	(16)%
		Eliminations	(3.1		)	(3.0		)	(0.1		)	3%	(6.3		)	(6.7		)	0.4			(6)%
		Total cost of services and products	$	165.4		$	170.8		$	(5.4	)	(3)%	$	320.2		$	333.5		$	(13.3	)	(4)%
	Selling, General and Administrative
		Entertainment and Communications	$	34.7		$	35.4		$	(0.7	)	(2)%	$	70.7		$	70.0		$	0.7		1%
		IT Services and Hardware	16.7			14.2			2.5			18%	31.9			27.7			4.2			15%
		Corporate and eliminations	4.0			6.6			(2.6		)	(39)%	9.5			11.7			(2.2		)	(19)%
		Total selling, general and administrative	$	55.4		$	56.2		$	(0.8	)	(1)%	$	112.1		$	109.4		$	2.7		2%
	Depreciation and Amortization
		Entertainment and Communications	$	43.2		$	41.6		$	1.6		4%	$	85.2		$	81.8		$	3.4		4%
		IT Services and Hardware	3.7			3.2			0.5			16%	7.5			6.4			1.1			17%
		Corporate	0.1			—			0.1			n/m	0.1			—			0.1			n/m
		Total depreciation and amortization	$	47.0		$	44.8		$	2.2		5%	$	92.8		$	88.2		$	4.6		5%
	Other*
		Entertainment and Communications	$	1.3		$	—		$	1.3		n/m	$	26.9		$	—		$	26.9		n/m
		IT Services and Hardware	2.3			—			2.3			n/m	2.3			—			2.3			n/m
		Corporate	1.7			—			1.7			n/m	2.3			—			2.3			n/m
		Total other	$	5.3		$	—		$	5.3		n/m	$	31.5		$	—		$	31.5		n/m
	Operating Income
		Entertainment and Communications	$	26.4		$	27.2		$	(0.8	)	(3)%	$	24.8		$	54.9		$	(30.1	)	(55)%
		IT Services and Hardware	0.6			6.9			(6.3		)	(91)%	3.1			14.1			(11.0		)	(78)%
		Corporate	(6.1		)	(6.7		)	0.6			(9)%	(12.3		)	(12.0		)	(0.3		)	3%
		Total operating income	$	20.9		$	27.4		$	(6.5	)	(24)%	$	15.6		$	57.0		$	(41.4	)	(73)%
		* Other includes restructuring and severance related charges and transaction costs.

Cincinnati Bell Inc.
Segment Metric Information
(Unaudited)
(In thousands)
			June 30,	March 31,	December 31,	September 30,	June 30,
			2017	2017	2016	2016	2016
	Residential voice lines
		Legacy voice lines	104.9	111.1	117.5	124.6	131.7
		Strategic voice lines (Fioptics)	87.0	85.5	83.8	80.3	77.4
		Total residential voice lines	191.9	196.6	201.3	204.9	209.1
	Business voice lines
		Legacy voice lines	177.3	183.9	190.7	197.7	203.2
		Strategic voice lines*	146.2	136.4	131.7	121.2	112.7
		Total business voice lines	323.5	320.3	322.4	318.9	315.9
	Total voice lines		515.4	516.9	523.7	523.8	525.0
	Long distance lines		304.3	311.0	317.3	323.7	329.3
	Internet subscribers
		DSL	93.0	100.1	105.6	114.2	121.7
		Fioptics	214.1	207.3	197.6	185.6	175.0
		Total internet subscribers	307.1	307.4	303.2	299.8	296.7
	Fioptics video subscribers		142.8	141.1	137.6	133.4	126.8
	Fioptics units passed		556.7	545.2	533.4	509.5	478.7
	* Strategic voice lines include VoIP lines and Fioptics voice lines.

Cincinnati Bell Inc.
Net Debt (Non-GAAP) and Common Shares Outstanding
(Unaudited)
(Dollars and shares in millions)
		June 30,			December 31,
		2017			2016
Receivables Facility		$	—		$	89.5
Corporate Credit Agreement - Tranche B Term Loan		315.8			315.8
7 1/4% Senior Notes due 2023		22.3			22.3
7% Senior Notes due 2024		625.0			625.0
Cincinnati Bell Telephone Notes		87.9			87.9
Capital leases and other debt		78.7			69.5
Net unamortized premium		8.2			8.5
Unamortized note issuance costs		(11.0		)	(11.9		)
	Total debt	1,126.9			1,206.6
Less: Cash and cash equivalents		(58.2		)	(9.7		)
	Net debt (Non-GAAP: as defined by the company)	$	1,068.7		$	1,196.9
Corporate Credit Agreement availability		$	150.0		$	150.0
Common shares outstanding		42.2			42.1

Cincinnati Bell Inc.
Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP)
(Unaudited)
(Dollars in millions)
			Three Months Ended June 30, 2017
			Entertainment & Communications			IT Services & Hardware			Corporate			Total Company
	Net income (GAAP)											$	2.1
	Add:
		Income tax expense										1.3
		Interest expense										18.1
		Other income, net										(0.6		)
	Operating income (GAAP)		$	26.4		$	0.6		$	(6.1	)	$	20.9
	Add:
		Depreciation and amortization	43.2			3.7			0.1			47.0
		Restructuring and severance related charges	1.3			2.3			—			3.6
		Transaction costs	—			—			1.7			1.7
		Pension and other retirement plan expenses	3.5			—			0.5			4.0
	Adjusted EBITDA (Non-GAAP)		$	74.4		$	6.6		$	(3.8	)	$	77.2
	Adjusted EBITDA Margin (Non-GAAP)		37		%	7		%	0		%	26		%
			Three Months Ended June 30, 2016
			Entertainment & Communications			IT Services & Hardware			Corporate			Total Company
	Net income (GAAP)											$	77.6
	Add:
		Income tax expense										44.4
		Interest expense										19.9
		Gain on sale of Investment in CyrusOne										(118.6		)
		Loss on extinguishment of debt, net										5.2
		Other income, net										(1.1		)
	Operating income (GAAP)		$	27.2		$	6.9		$	(6.7	)	$	27.4
	Add:
		Depreciation and amortization	41.6			3.2			—			44.8
		Pension and other retirement plan expenses	3.7			—			0.4			4.1
	Adjusted EBITDA (Non-GAAP)		$	72.5		$	10.1		$	(6.3	)	$	76.3
	Adjusted EBITDA Margin (Non-GAAP)		38		%	9		%	0		%	26		%
	Year-over-year dollar change in Adjusted EBITDA		$	1.9		$	(3.5	)	$	2.5		$	0.9
	Year-over-year percentage change in Adjusted EBITDA		3		%	(35		)%	(40		)%	1		%

Cincinnati Bell Inc.
Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP)
(Unaudited)
(Dollars in millions)
			Six Months Ended June 30, 2017
			Entertainment & Communications			IT Services & Hardware			Corporate			Total Company
	Net income (GAAP)											$	62.5
	Add:
		Income tax expense										35.7
		Interest expense										36.1
		Gain on sale of Investment in CyrusOne										(117.7		)
		Other income, net										(1.0		)
	Operating income (GAAP)		$	24.8		$	3.1		$	(12.3	)	$	15.6
	Add:
		Depreciation and amortization	85.2			7.5			0.1			92.8
		Restructuring and severance related charges	26.9			2.3			—			29.2
		Transaction costs	—			—			2.3			2.3
		Pension and other retirement plan expenses	7.2			—			1.0			8.2
	Adjusted EBITDA (Non-GAAP)		$	144.1		$	12.9		$	(8.9	)	$	148.1
	Adjusted EBITDA Margin (Non-GAAP)		36		%	7		%	0		%	26		%
			Six Months Ended June 30, 2016
			Entertainment and Communications			IT Services & Hardware			Corporate			Total Company
	Net income (GAAP)											$	84.6
	Add:
		Income tax expense										49.1
		Interest expense										40.2
		Gain on sale of Investment in CyrusOne										(118.6		)
		Loss on extinguishment of debt, net										2.8
		Other income, net										(1.1		)
	Operating income (GAAP)		$	54.9		$	14.1		$	(12.0	)	$	57.0
	Add:
		Depreciation and amortization	81.8			6.4			—			88.2
		Pension and other retirement plan expenses	7.4			—			0.9			8.3
	Adjusted EBITDA (Non-GAAP)		$	144.1		$	20.5		$	(11.1	)	$	153.5
	Adjusted EBITDA Margin (Non-GAAP)		38		%	10		%	0		%	26		%
	Year-over-year dollar change in Adjusted EBITDA		$	—		$	(7.6	)	$	2.2		$	(5.4	)
	Year-over-year percentage change in Adjusted EBITDA		0		%	(37		)%	(20		)%	(4		)%

Cincinnati Bell Inc.
Consolidated Statements of Cash Flows
(Unaudited)
(Dollars in millions)
			Three Months Ended						Six Months Ended
			June 30,						June 30,
			2017			2016			2017			2016
	Cash provided by operating activities		$	69.0		$	32.2		$	122.9		$	97.9
		Capital expenditures	(50.1		)	(59.2		)	(105.2		)	(121.6		)
		Proceeds from sale of Investment in CyrusOne	—			142.5			140.7			142.5
		Acquisitions of businesses	(0.4		)	—			(9.6		)	—
		Dividends received from Investment in CyrusOne	—			2.8			—			4.9
		Other, net	(0.1		)	(0.6		)	0.4			(0.7		)
	Cash (used in) provided by investing activities		(50.6		)	85.5			26.3			25.1
		Net (decrease) increase in corporate credit and receivables facilities with initial maturities less than 90 days	—			(13.5		)	(89.5		)	15.4
		Repayment of debt	(2.1		)	(93.7		)	(4.2		)	(124.6		)
		Debt issuance costs	(0.2		)	(1.9		)	(0.7		)	(1.9		)
		Dividends paid on preferred stock	(2.6		)	(2.6		)	(5.2		)	(5.2		)
		Common stock repurchase	—			(4.6		)	—			(4.6		)
		Other, net	—			0.3			(1.1		)	0.1
	Cash used in financing activities		(4.9		)	(116.0		)	(100.7		)	(120.8		)
	Net increase in cash and cash equivalents		13.5			1.7			48.5			2.2
	Cash and cash equivalents at beginning of period		44.7			7.9			9.7			7.4
	Cash and cash equivalents at end of period		$	58.2		$	9.6		$	58.2		$	9.6
	Reconciliation of Cash Provided by Operating Activities (GAAP) to
		Free Cash Flow (Non-GAAP)
	Cash provided by operating activities		$	69.0		$	32.2		122.9			$	97.9
	Adjustments:
		Capital expenditures	(50.1		)	(59.2		)	(105.2		)	(121.6		)
		Restructuring and severance related payments	4.4			0.6			17.1			0.6
		Preferred stock dividends	(2.6		)	(2.6		)	(5.2		)	(5.2		)
		Dividends received from Investment in CyrusOne	—			2.8			—			4.9
		Decommissioning of wireless towers	—			0.2			—			1.9
		Cash used by discontinued operations	—			1.4			—			4.8
		Transaction costs	0.1			—			0.7			—
		Free cash flow (Non-GAAP)	$	20.8		$	(24.6	)	$	30.3		$	(16.7	)
	Income tax (refunds) payments		$	(16.3	)	$	0.8		$	(16.3	)	$	1.4

Cincinnati Bell Inc.
Free Cash Flow (Non-GAAP)
(Unaudited)
(Dollars in millions)
	Free Cash Flow (Non-GAAP) for the three months ended June 30, 2016	$	(24.6	)
	Increase in Adjusted EBITDA (Non-GAAP)	0.9
	Decrease in capital expenditures	9.1
	Decrease in interest payments	26.3
	Decrease in dividends received from Investment in CyrusOne	(2.8		)
	Increase in pension and postretirement payments and contributions	(0.4		)
	Change in working capital and other	12.3
	Free Cash Flow (Non-GAAP) for the three months ended June 30, 2017	$	20.8
	Free Cash Flow (Non-GAAP) for the six months ended June 30, 2016	$	(16.7	)
	Decrease in Adjusted EBITDA (Non-GAAP)	(5.4		)
	Decrease in capital expenditures	16.4
	Decrease in interest payments	15.3
	Decrease in dividends received from Investment in CyrusOne	(3.8		)
	Increase in pension and postretirement payments and contributions	(0.5		)
	Change in working capital and other	25.0
	Free Cash Flow (Non-GAAP) for the six months ended June 30, 2017	$	30.3

Cincinnati Bell Inc.
Capital Expenditures
(Unaudited)
(Dollars in millions)
	Three Months Ended
	Jun. 30, 2017		Mar. 31, 2017		Dec. 31, 2016		Sep. 30, 2016		Jun. 30, 2016
Entertainment and Communications	$	48.0	$	49.5	$	93.8	$	63.1	$	55.3
IT Services and Hardware	2.1		5.6		3.8		4.1		3.8
Corporate	—		—		—		—		0.1
Total capital expenditures	$	50.1	$	55.1	$	97.6	$	67.2	$	59.2

Cincinnati Bell Inc.
Reconciliation of Net (Loss) Income Applicable to Common Shareholders (GAAP) to Net Income Applicable to Common Shareholders, Excluding Special Items (Non-GAAP) and Adjusted Diluted Earnings Per Share (Non-GAAP)
(Unaudited)
(Dollars in millions, except per share amounts)
		Three Months Ended
		June 30, 2017			June 30, 2016
Net (loss) income applicable to common shareholders (GAAP)		$	(0.5	)	$	75.0
Special items:
	Restructuring and severance related charges	3.6			—
	Transaction costs	1.7			—
	Loss on extinguishment of debt, net	—			5.2
	Gain on sale of Investment in CyrusOne	—			(118.6		)
	Reversal of wireless tower decommissioning accrual	—			(1.1		)
	Income tax effect of special items *	(1.8		)	41.7
Total special items		3.5			(72.8		)
Net income applicable to common shareowners, excluding special items (Non-GAAP)		$	3.0		$	2.2
Weighted average diluted shares outstanding		42.3			42.1
Diluted (loss) earnings per common share (GAAP)		$	(0.01	)	$	1.78
Adjusted diluted earnings per common share (Non-GAAP)		$	0.07		$	0.05
*	Special items have been tax effected such that the normalized effective tax rate is 36%.

Cincinnati Bell Inc.
Reconciliation of Net Income Applicable to Common Shareholders (GAAP) to Net Income Applicable to Common Shareholders, Excluding Special Items (Non-GAAP) and Adjusted Diluted Earnings Per Share (Non-GAAP)
(Unaudited)
(Dollars in millions, except per share amounts)
		Six Months Ended
		June 30, 2017			June 30, 2016
Net income applicable to common shareholders (GAAP)		$	57.3		$	79.4
Special items:
	Restructuring and severance related charges	29.2			—
	Transaction costs	2.3			—
	Loss on extinguishment of debt, net	—			2.8
	Gain on sale of Investment in CyrusOne	(117.7		)	(118.6		)
	Reversal of wireless tower decommissioning accrual	—			(1.1		)
	Income tax effect of special items *	31.4			43.1
Total special items		(54.8		)	(73.8		)
Net income applicable to common shareowners, excluding special items (Non-GAAP)		$	2.5		$	5.6
Weighted average diluted shares outstanding		42.3			42.1
Diluted earnings per common share (GAAP)		$	1.35		$	1.89
Adjusted diluted earnings per common share (Non-GAAP)		$	0.06		$	0.13
*	Special items have been tax effected such that the normalized effective tax rate is 36%.

Cincinnati Bell Inc.
Reconciliation of Operating Income (GAAP) Guidance to Adjusted EBITDA (Non-GAAP) Guidance
(Unaudited)
(Dollars in millions)
	2017 Operating Income (GAAP) Guidance	$	64
	Add:
	Depreciation and amortization	185
	Restructuring and severance related charges	29
	Pension and other retirement plan expenses	17
	2017 Adjusted EBITDA (Non-GAAP) Guidance	$	295	*
	* 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 Second Quarter 2017 Results August 4, 2017

Safe Harbor This presentation may contain “forward-looking” statements, as defined in federal securities laws including the Private Securities Litigation Reform Act of 1995, which are based on our current expectations, estimates, forecasts and projections. Statements that are not historical facts, including statements about the beliefs, expectations and future plans and strategies of the Company, are forward-looking statements. Actual results may differ materially from those expressed in any forward-looking statements. The following important factors, among other things, could cause or contribute to actual results being materially and adversely different from those described or implied by such forward-looking statements including, but not limited to: those discussed in this presentation; we operate in highly competitive industries, and customers may not continue to purchase products or services, which would result in reduced revenue and loss of market share; we may be unable to grow our revenues and cash flows despite the initiatives we have implemented; failure to anticipate the need for and introduce new products and services or to compete with new technologies may compromise our success in the telecommunications industry; our access lines, which generate a significant portion of our cash flows and profits, are decreasing in number and if we continue to experience access line losses similar to the past several years, our revenues, earnings and cash flows from operations may be adversely impacted; our failure to meet performance standards under our agreements could result in customers terminating their relationships with us or customers being entitled to receive financial compensation, which would lead to reduced revenues and/or increased costs; we generate a substantial portion of our revenue by serving a limited geographic area; a large customer accounts for a significant portion of our revenues and accounts receivable and the loss or significant reduction in business from this customer would cause operating revenues to decline and could negatively impact profitability and cash flows; maintaining our telecommunications networks requires significant capital expenditures, and our inability or failure to maintain our telecommunications networks could have a material impact on our market share and ability to generate revenue; increases in broadband usage may cause network capacity limitations, resulting in service disruptions or reduced capacity for customers; we may be liable for material that content providers distribute on our networks; cyber attacks or other breaches of network or other information technology security could have an adverse effect on our business; natural disasters, terrorists acts or acts of war could cause damage to our infrastructure and result in significant disruptions to our operations; the regulation of our businesses by federal and state authorities may, among other things, place us at a competitive disadvantage, restrict our ability to price our products and services and threaten our operating licenses; we depend on a number of third party providers, and the loss of, or problems with, one or more of these providers may impede our growth or cause us to lose customers; a failure of back-office information technology systems could adversely affect our results of operations and financial condition; if we fail to extend or renegotiate our collective bargaining agreements with our labor union when they expire or if our unionized employees were to engage in a strike or other work stoppage, our business and operating results could be materially harmed; the loss of any of the senior management team or attrition among key sales associates could adversely affect our business, financial condition, results of operations and cash flows; our debt could limit our ability to fund operations, raise additional capital, and fulfill our obligations, which, in turn, would have a material adverse effect on our businesses and prospects generally; our indebtedness imposes significant restrictions on us; we depend on our loans and credit facilities to provide for our short-term financing requirements in excess of amounts generated by operations, and the availability of those funds may be reduced or limited; the servicing of our indebtedness is dependent on our ability to generate cash, which could be impacted by many factors beyond our control; we depend on the receipt of dividends or other intercompany transfers from our subsidiaries and investments; the trading price of our common shares may be volatile, and the value of an investment in our common shares may decline; the uncertain economic environment, including uncertainty in the U.S. and world securities markets, could impact our business and financial condition; our future cash flows could be adversely affected if it is unable to fully realize our deferred tax assets; adverse changes in the value of assets or obligations associated with our employee benefit plans could negatively impact shareowners’ deficit and liquidity; third parties may claim that we are infringing upon their intellectual property, and we could suffer significant litigation or licensing expenses or be prevented from selling products; third parties may infringe upon our intellectual property, and we may expend significant resources enforcing our rights or suffer competitive injury; we could be subject to a significant amount of litigation, which could require us to pay significant damages or settlements; we could incur significant costs resulting from complying with, or potential violations of, environmental, health and human safety laws; the timing and likelihood of completion of our proposed mergers with Hawaiian Telcom and OnX, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals for the proposed transactions that could reduce anticipated benefits or cause the parties to abandon the transactions; the possibility that Hawaiian Telcom’s stockholders may not approve the proposed merger; the possibility that competing offers or acquisition proposals for Hawaiian Telcom will be made; the occurrence of any event, change or other circumstance that could give rise to the termination of the proposed transactions; the possibility that the expected synergies and value creation from the proposed transactions will not be realized or will not be realized within the expected time period; the risk that the businesses of the Company and Hawaiian Telcom and OnX will not be integrated successfully; disruption from the proposed transactions making it more difficult to maintain business and operational relationships; the risk that unexpected costs will be incurred; and the possibility that the proposed transactions do not close, including due to the failure to satisfy the closing conditions and the other risks and uncertainties detailed in our filings, including our Form 10-K, with the SEC as well as Hawaiian Telcom’s filings, including its Form 10-K, with the SEC. These forward-looking statements are based on information, plans and estimates as of the date hereof and there may be other factors that may cause our actual results to differ materially from these forward-looking statements. We assume no obligation to update the information contained in this presentation except as required by applicable law. 2

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. 3

Call Participants Page 4 Leigh Fox President and CEO, Cincinnati Bell Andy Kaiser CFO, Cincinnati Bell 4

Page 5 Second Quarter 2017 Highlights Strategic Revenue with breakdown for 2 segments Adj EBITDA with breakdown for 2 segments 5 Strategic Revenue $171M +9% y/y Fioptics Revenue of $77M +24% y/y 556,700 addresses +16% y/y Cloud Services Revenue of $12M +7% y/y Adjusted EBITDA ($ in millions) $192 $201 $110 $96 -$3 -$3 2Q16 2Q17 Entertainment & Communications IT & Hardware Eliminations Total Revenue ($ in millions) $74 $72 $7 $10 -$4 -$6 Entertainment & Communications IT & Hardware Corporate 2Q17 2Q16 $76 $299 $294 $77 Key Financial Metrics

• 2016 Revenue: $2,193M(3) • 2016 EBITDA: $471M(4) • Margin: 21% • Hawaii’s fiber-centric technology leader providing voice, video, broadband, data center and cloud solutions Source: Company Filings 6 Transaction Size Business Description Key Financial Statistics • Provides technology services and solutions to enterprise customers in the U.S., Canada and the U.K. “New Cincinnati Bell” • Two distinct but complementary $1B+ business: a fiber network and cloud integrator, with clear pathway for growth • 2016 Revenue: $393M • 2016 EBITDA: $116M(1) • Margin: 30% • FYE 4/30/17 Revenue: $614M • FYE 4/30/17 EBITDA: $29M(2) • Margin: 5% 1. CY2016 EBITDA of HCOM represents net income plus interest expense (net of interest income and other), income taxes, depreciation and amortization, gain on sale of property, non-cash stock and other performance-based compensation, System Metrics earn-out, pension settlement loss, severance costs and is adjusted for certain non-recurring items. 2. FYE 4/30/2017 EBITDA of OnX represents as net income before income taxes plus share-based compensation, depreciation and amortization, finance costs, foreign exchange loss, net restructuring and other charges and management fee. 3. Calculated as CY2016 revenue of CBB of $1,186M plus CY2016 revenue of HCOM plus FYE2017 revenue of OnX. 4. Calculated as CY2016 EBITDA of CBB of $305M plus CY2016 EBITDA of HCOM plus FYE2017 EBITDA of OnX plus run-rate synergies of $21M. Expected Close Expected Cost Synergies* ~50% ~50% Network IT Services (Pro Forma Revenue Mix) • H2 2018 • Q4 2017 • Network: ~$11M annually • IT Services: ~$10M annually • Combined: ~$21M annually Page 6 • $650M including existing net debt • 60% cash and 40% stock • $201M in cash *To be realized within two years post-close, and excluding potential revenue synergies from cross-selling opportunities Second Quarter 2017 Highlights Combinations with Hawaiian Telcom and OnX

Page 7 Entertainment & Communications 7 Strategic Revenue with breakdown for 2 segments Segment Revenue Elements Segment Results Strategic Revenue Highlights • Fioptics revenue of $77M, up 24% y/y • Fioptics internet subscribers of 214,100, up 22% y/y • Fioptics video subscribers of 142,800, up 13% y/y • Total internet subscribers of 307,100 in 2Q17, up 4% y/y • Merger with Hawaiian Telcom to add operational scale and expand the Company’s fiber-centric footprint and commercial opportunity to Hawai’i ($ in millions) 2Q17 Y/Y Consumer $74 20% Business 42 11% Carrier 15 34% Total $131 18% ($ in millions) 2Q17 Y/Y Revenue $201 5% Adj. EBITDA $74 3% Adj. EBITDA margin 37% -2% Data +1% y/y Voice -3% y/y Services & Other +65% y/y Video +20% y/y

Page 8 Fioptics Update 8 Fioptics Revenue ($ in millions) Total Fioptics Subscribers (in thousands) Fioptics Penetration Video Internet Voice 26% 38% 18% Fioptics Monthly ARPU Video Internet Voice $87 $49 $28 +4% y/y +5% y/y flat y/y $31 $37 $24 $31 $7 $9 2Q16 2Q17 Video Internet Voice $62 $77 127 143 175 214 87 102 2Q16 2Q17 Video Internet Voice CBB continues to win with fiber in a heightened competitive environment • Fioptics is available to 556,700 addresses - approximately 70% of Greater Cincinnati • On track to pass 35,000 new addresses in 2017 • Video churn of 2.5% in 2Q17, consistent with prior year • Single-family churn was 2.0%; apartment churn was 4.1% =

$32 $26 $61 $74 2Q16 2Q17 Legacy Strategic Integration Page 9 Entertainment & Communications 9 Consumer Market $14 $14 $12 $10 $5 2Q16 2Q17 Legacy Strategic One-time Fiber Build Project Business Market Carrier Market $94 • Fioptics revenue growth continues to more than offset legacy declines • Ongoing transition of customers from copper network to strategic fiber-based products continues • Positive contribution from one-time fiber build project completed in 2Q17 • On-going FCC switched access rate reductions • National carriers increased focus on reducing costs 1. Entertainment & Communications Consumer Integration revenue totaled $1M 2Q16 2. Entertainment & Communications Business Integration revenue was less than $1M in 2Q16 and 2Q17 $34 $30 $38 $42 2Q16 2Q17 Legacy Strategic Integration $72 $72 (1) (2) ($ in millions) = $29 $26 $100

Page 10 IT Services & Hardware 10 Strategic Revenue with breakdown for 2 segments Adj EBITDA with breakdown for 2 segments Segment Results Strategic Revenue ($ in millions) 2Q17 Y/Y Professional Services $18 -20% Management and Monitoring 5 -35% Unified Communications 7 1% Cloud Services 12 7% Total $42 -13% Highlights • Cloud Services revenue of $12 million, up 7% y/y • Revenue decreased due to a decline in Telecom & IT hardware sales and increased insourcing of IT services in the Company’s market • Positive contribution from the SunTel Services acquisition, expanding CBTS' presence into the Michigan market • Acquisition of OnX Enterprise Solutions to expand the Company’s product offering, and provide greater geographic and customer diversification ($ in millions) 2Q17 Y/Y Revenue $96 -13% Adj. EBITDA $7 -35% Adj. EBITDA margin 7% -25% Segment Revenue Elements Professional Services -14% y/y Management & Monitoring -35% y/y Unified Communications +9% y/y Cloud Services +7% y/y Telecom & IT Hardware -17% y/y

Page 11 Free Cash Flow Performance 11 YTD Free Cash Flow Net Debt Working Capital 1. Calculated as net debt divided by LTM adjusted EBITDA 2. Includes decommissioning of wireless towers $1,131 $1,068 2Q16 2Q17 ($ in millions) 3.7x Net Leverage(1) 3.6x Net Leverage(1) 2Q17 Y/Y YTD Change Adjusted EBITDA (Non-GAAP) $ 148 $ (5) Interest Payments (26) 15 Pension and OPEB Payments (6) (1) Stock-based Compensation 4 - Restructuring & Severance related payments (17) (16) Transaction Costs (1) (1) Working Capital 21 33 Cash Provided by Operating Activities (GAAP) $ 123 $ 25 Capital expenditures (105) 16 Restructuring & severance related payments 17 16 Preferred stock dividends (5) - Dividends received from Investment in CyrusOne - (4) Cash used by discontinued operations(2) - (7) Transaction Costs 1 1 Rounding (1) - Free Cash Flow (N n-GAAP) $ 30 $ 47 -$12 $21 2Q16 YTD 2Q17 YTD

Page 12 Capital Expenditures 12 Capital Expenditures Total $50 $105 $180 – $210 • Invested $66 million in Fioptics in H1 2017 • Passed an additional 23,300 customer locations • On track to pass 35,000 new addresses during 2017 and extend coverage to more than 70% of Greater Cincinnati • Other strategic represents success-based capital for fiber builds for business and new IT services projects 2Q17 YTD 2Q17 FY 2017 Construction $15 $31 $40 – $50 Installation 13 28 40 – 50 Value Added 2 7 10 Total Fioptics $30 $66 $90 – $110 Other Strategic 10 22 50 – 60 Total Success-based Investments $40 $88 $140 – $170 Legacy Maintenance 10 17 40 ($ in millions)

Page 13 2017 Outlook 13 Reaffirms 2017 Guidance Revenue $1.2B Adjusted EBITDA $295M* • Reaffirms 2017 financial guidance, provided on February 15, 2017 • This guidance does not include any contribution from pending mergers * Plus or minus 2 percent Selected 2017 Free Cash Flow Items Capital Expenditures $180 - $210M Interest payments ~$70M Pension and OPEB payments ~ $14M

10% 20% 30% 40% 50% 60% Year 1 Year 2 Year 3 Year 4 Fiber to the Home Penetration FHSI Penetration Rates Video Penetration Page 14 Summary Refining Cincinnati Bell’s strategy Entertainment & Communications IT Services & Hardware 1 Focus on investing where we are winning • Fioptics revenue growth of 24% y/y in 2Q17 • Cloud Services revenue growth of 7% y/y in 2Q17 3 How we win • Continued investment in fiber • Additional IT services customers provides cloud growth potential through scale and distribution 4 Significant market opportunity • Growth driven by IoT and 5G infrastructure spend • 89% of organizations are willing to pay a premium for cloud implementation and management services 14 2 Why we win • The more fiber, the greater the market penetration • IT services business, combined with our network provides a platform for cloud migration services

Page 15 Q&A

Page 16 Appendix

Page 17 17 Consolidated Results ($ in millions, except per share amounts) 2017 2016 Revenue 294.0$ 299.2$ Costs and expenses Cost of services and products 165.4 170.8 Selling, general and administrative 55.4 56.2 Depreciation and amortization 47.0 44.8 Restructuring and severance related charges 3.6 — Other 1.7 — Operating income 20.9 27.4 Interest expense 18.1 19.9 Loss on extinguishment of debt, net — 5.2 Gain on sale of Investment in CyrusOne — (118.6) Other income, net (0.6) (1.1) Income before income taxes 3.4 122.0 Income tax expense 1.3 44.4 Net income 2.1 77.6 Preferred stock dividends 2.6 2.6 Net (loss) income applicable to common shareowners (0.5)$ 75.0$ Basic net (loss) earnings per common share (0.01)$ 1.79$ Dilu ed net (loss) earnings per common share (0.01)$ 1.78$ Weighted average common shares outstanding (in millions) – Basic 42.2 42.0 – Diluted 42.2 42.1 June 30, Three Months Ended

Page 18 18 Consolidated Results ($ in millions, except per share amounts) 2017 2016 Revenue 572.2$ 588.1$ Costs and expenses Cost of services and products 320.2 333.5 Selling, general and administrative 112.1 109.4 Depreciation and amortization 92.8 88.2 Restructuring and severance related charges 29.2 — Other 2.3 — Operating income 15.6 57.0 Interest expense 36.1 40.2 Loss on extinguishment of debt, net — 2.8 Gain on sale of Investment in CyrusOne (117.7) (118.6) Other income, net (1.0) (1.1) Income before income taxes 98.2 133.7 Income tax expense 35.7 49.1 Net income 62.5 84.6 Preferred stock dividends 5.2 5.2 Net income applicable to common shareowners 57.3$ 79.4$ Basic net earnings per common share 1.36$ 1.89$ Diluted net earnings per common share 1.35$ 1.89$ Weighted average common shares outstanding (in millions) – Basic 42.1 42.0 – Diluted 42.3 42.1 Six Months Ended June 30,

Page 19 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 – Entertainment and Communications

Page 20 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 Classifications – IT Services and Hardware

Page 21 21 Revenue – Strategic, Legacy and Integration ($ in millions) Entertainment and Communications IT Services and Hardware Total Eliminations Total Strategic Data 66.2$ $ — Voice 21.5 — Video 37.2 — Services and other 6.4 — Professional services — 18.4 Management and monitoring — 5.1 Unified communications — 7.4 Cloud services — 11.6 Total Strategic 131.3 42.5 173.8 (2.3) 171.5 Legacy Data 21.5$ $ — Voice 45.6 — Services and other 2.6 — Total Legacy 69.7 - 69.7 (0.3) 69.4 Integration Services and other 0.4$ $ — Professional services — 5.1 Unified communications — 3.6 Telecom and IT hardware — 44.8 Total Integration 0.4 53.5 53.9 (0.8) 53.1 201.4$ 96.0$ 297.4$ (3.4)$ 294.0$ Eliminations (0.5) (2.9) (3.4) Total Revenue 200.9$ 93.1$ 294.0$ 2Q17

Page 22 22 Revenue – Strategic, Legacy and Integration ($ in millions) Entertainment and Communications IT Services and Hardware Total Eliminations Total Strategic Data 131.6$ $ — Voice 42.0 — Video 73.2 — Services and other 7.3 — Professional services — 36.7 Management and monitoring — 10.1 Unified communications — 14.5 Cloud services — 25.3 Total Strategic 254.1 86.6 340.7 (4.6) 336.1 Legacy Data 43.7$ $ — Voice 92.8 — Services and other 5.3 — Total Legacy 141.8 - 141.8 (0.5) 141.3 Integration Services and other 0.8$ $ — Professional services — 8.5 Unified communications — 6.4 Telecom and IT hardware — 80.7 Total Integration 0.8 95.6 96.4 (1.6) 94.8 396.7$ 182.2$ 578.9$ (6.7)$ 572.2$ Eliminations (0.9) (5.8) (6.7) Total Revenue 395.8$ 176.4$ 572.2$ YTD 2Q17

Page 23 23 Revenue – Strategic, Legacy and Integration ($ in millions) Entertainment and Communications IT Services and Hardware Total Eliminations Total Strategic Data 60.8$ $ — Voice 17.9 — Video 30.9 — Services and other 1.4 — Professional services — 23.1 Management and monitoring — 7.9 Unified communications — 7.3 Cloud services — 10.8 Total Strategic 111.0 49.1 160.1 (2.4) 157.7 Legacy Data 26.0$ $ — Voice 51.2 — Services and other 2.8 — Total Legacy 80.0 - 80.0 (0.1) 79.9 Integration Services and other 1.5$ $ — Professional services — 4.1 Unified communications — 2.8 Telecom and IT hardware — 53.8 Total Integration 1.5 60.7 62.2 (0.6) 61.6 192.5$ 109.8$ 302.3$ (3.1)$ 299.2$ Eliminations (0.2) (2.9) (3.1) Total Revenue 192.3$ 106.9$ 299.2$ 2Q16

Page 24 24 Revenue – Strategic, Legacy and Integration ($ in millions) Entertainment and Communications IT Services and Hardware Total Eliminations Total Strategic Data 118.9$ $ — Voice 35.1 — Video 59.9 — Services and other 2.7 — Professional services — 45.4 Management and monitoring — 16.0 Unified communications — 14.8 Cloud services — 21.0 Total Strategic 216.6 97.2 313.8 (4.6) 309.2 Legacy Data 53.1$ $ — Voice 104.2 — Services and other 5.9 — Total Legacy 163.2 - 163.2 (0.4) 162.8 Integration Services and other 3.0$ $ — Professional services — 8.0 Unified communications — 5.4 Telecom and IT hardware — 101.7 Total Integration 3.0 115.1 118.1 (2.0) 116.1 382.8$ 212.3$ 595.1$ (7.0)$ 588.1$ Eliminations (0.6) (6.4) (7.0) Total Revenue 382.2$ 205.9$ 588.1$ YTD 2Q16