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 15, 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))

Section 2 - Financial Information

Item 2.02Results of Operations and Financial Condition

On February 15, 2017, Cincinnati Bell Inc. reported its financial results for the fourth quarter 2016. The earnings release is attached as Exhibit 99.1.

Section 7 - Regulation FD

Item 7.01     Regulation FD Disclosure

On February 15, 2017, Theodore H. Torbeck, the Company's chief executive officer, Leigh R. Fox, the Company's president and chief operating officer, and Andrew R. Kaiser, the Company's chief financial officer, will present fourth quarter 2016 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 15, 2017
	Exhibit 99.2	Presentation made during the Cincinnati Bell fourth quarter 2016 earnings conference call on February 15, 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 February 15, 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:	February 15, 2017	By:	/s/ Christopher J. Wilson
			Christopher J. Wilson
			Vice President and General Counsel

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press release dated February 15, 2017
99.2	Presentation made during the Cincinnati Bell fourth quarter 2016 earnings conference call on February 15, 2017

EX-99.1

Cincinnati Bell Reports Fourth Quarter and Full Year 2016 Results

2016 HIGHLIGHTS

• Consolidated revenue increased $18 million compared to the prior year - revenue from strategic products was up 19 percent year-over-year

• Entertainment and Communications revenue totaled $769 million, up $25 million over the prior year - Fioptics revenue was up 33 percent compared to 2015

• Record-high 44 thousand Fioptics internet net activations - Fioptics is now available to 67 percent of Greater Cincinnati

• Net income totaled $102 million, resulting in diluted earnings per share of $2.18

• Adjusted EBITDA¹ totaled $305 million in 2016, increasing $3 million over the prior year

• Proceeds from the $625 million of 7% senior notes due 2024 were used to redeem 8 ³/₈% senior notes due 2020 and to repay a portion of the outstanding Corporate Credit Agreement Tranche B Term Loan

• Gain on the sale of 4.1 million CyrusOne common shares totaled $157 million

CINCINNATI - February 15, 2017- Cincinnati Bell Inc. (NYSE:CBB) today announced financial results for the fourth quarter and full year of 2016, highlighted by year-over-year consolidated revenue and Adjusted EBITDA growth. Strategic revenues increased more than $100 million during 2016 totaling $638 million on continued strong demand for fiber products and IT services. Total internet subscribers now exceed 300,000, increasing 15,800 compared to a year ago. Fioptics video subscribers totaled 137,600 at the end of 2016, up 20 percent compared to the prior year. Fioptics is now available to 533,400 addresses after passing 101,400 additional units during 2016.

"2016 was an exceptional year for Cincinnati Bell. We achieved our full year financial guidance and significantly improved our capital structure. The on-going success of our investments in fiber and IT solutions generated both revenue and Adjusted EBITDA growth,” said Ted Torbeck, chief executive officer. Torbeck also added, “Demand for Fioptics and our IT solutions remains impressive, driving the decision to continue investing in our strategic products for future growth. In addition, we are identifying opportunities to further reduce costs associated with the legacy copper network as we progress toward positive free cash flow for 2017."

CONSOLIDATED RESULTS²  

Year-to-date consolidated revenue was $1.2 billion, up 2 percent compared to a year ago. Fourth quarter consolidated revenue totaled $285 million, down 1 percent compared to the prior year. Operating income was $93 million and $11 million for the full year and fourth quarter of 2016, respectively. Adjusted EBITDA for the year was $305 million, up $3 million year-over-year. Adjusted EBITDA for the quarter also increased $3 million compared to the prior year totaling $74 million. Net income for the year totaled $102 million, resulting in diluted earnings per share of $2.18. Fourth quarter net loss of $1 million was due primarily to cost-out initiatives incurred during the quarter, resulting in a diluted loss of $0.09 per share.

Entertainment and Communications Segment

• Entertainment and Communications revenue totaled $193 million for the quarter and $769 million for the full year, up $5 million and $25 million, respectively, from the same periods in 2015.

◦ Fioptics revenue increased 33 percent during 2016 compared to a year ago, totaling $69 million for the quarter and $254 million for the year.

◦ Strategic revenue for business and carrier customers totaled $51 million for the quarter and $198 million for the full year, up $6 million and $23 million, respectively.

• Operating income was down from a year ago due primarily to additional depreciation expense associated with accelerating our fiber investments and initiatives to reduce future costs associated with our legacy copper network. Operating income was $15 million and $91 million for the fourth quarter and full year, respectively.

• Adjusted EBITDA was $70 million for the quarter, up $1 million compared to a year ago. Full year Adjusted EBITDA totaled $283 million, consistent with the prior year.

IT Services and Hardware Segment

• Revenue for the quarter was $96 million, down $9 million from the fourth quarter of 2015 due to declines in lower margin Telecom and IT hardware revenue. Full year revenue was $431 million, compared to $435 million in 2015.

◦ Strategic revenue was $49 million in the quarter, up 3 percent over the prior year. Full year strategic revenue was $197 million, up 10 percent compared to a year ago.

◦ Telecom and IT hardware revenue was $38 million for the quarter, compared to $49 million in the fourth quarter of 2015. Full year Telecom and IT hardware revenue was $206 million, down $25 million compared to the prior year.

• Operating income was $1 million for the quarter, down $4 million over the prior year. Operating income increased $3 million on an annual basis, totaling $23 million for the full year 2016.

• Adjusted EBITDA for the quarter was $8 million, down from $9 million a year ago. Full year Adjusted EBITDA totaled $40 million, up $4 million from the prior year.

2017 Outlook

Cincinnati Bell is providing the following guidance for 2017:

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

*Plus or minus 2 percent

Conference Call/Webcast

Cincinnati Bell will host a conference call on February 15 at 10:00 a.m. (ET) to discuss its results for the fourth quarter and full year of 2016. 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) 500-6973. Callers located outside of the U.S. and Canada may dial (719) 457-2644. 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 Wednesday, March 1, 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 1971441. 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 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.

²Consolidated Results for the three and twelve months ended December 31, 2015 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 activities, adjusted for capital expenditures, restructuring and severance related payments, preferred stock dividends, dividends received from CyrusOne, and cash used in or (provided by) discontinued operations, including the decommission of wireless towers.  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. 

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, net unamortized premium and/or discount and unamortized note issuance costs, 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
				2016			2015			$			%	2016			2015			$			%
	Revenue			$	285.3		$	289.3		$	(4.0	)	(1)%	$	1,185.8		$	1,167.8		$	18.0		2%
	Costs and expenses
		Cost of services and products		161.6			166.6			(5.0		)	(3)%	678.9			670.6			8.3			1%
		Selling, general and administrative		53.8			57.4			(3.6		)	(6)%	218.7			219.1			(0.4		)	0%
		Depreciation and amortization		47.5			39.2			8.3			21%	182.2			141.6			40.6			29%
		Restructuring and severance related charges		11.9			—			11.9			n/m	11.9			6.0			5.9			98%
		Other		—			1.1			(1.1		)	n/m	1.1			2.5			(1.4		)	(56)%
			Operating income	10.5			25.0			(14.5		)	(58)%	93.0			128.0			(35.0		)	(27)%
	Interest expense			17.6			20.9			(3.3		)	(16)%	75.7			103.1			(27.4		)	(27)%
	Loss (gain) on extinguishment of debt, net			4.8			(0.4		)	5.2			n/m	19.0			20.9			(1.9		)	(9)%
	Gain on sale of CyrusOne investment			(5.1		)	(36.3		)	31.2			(86)%	(157.0		)	(449.2		)	292.2			(65)%
	Other (income) expense, net			(6.4		)	(3.4		)	(3.0		)	88%	(7.6		)	2.6			(10.2		)	n/m
	(Loss) income from continuing operations before income taxes			(0.4		)	44.2			(44.6		)	n/m	162.9			450.6			(287.7		)	(64)%
	Income tax expense			1.2			13.7			(12.5		)	(91)%	61.1			159.8			(98.7		)	(62)%
	(Loss) income from continuing operations			(1.6		)	30.5			(32.1		)	n/m	101.8			290.8			(189.0		)	(65)%
	Income from discontinued operations, net of tax			0.3			2.1			(1.8		)	(86)%	0.3			62.9			(62.6		)	(100)%
	Net (loss) income			(1.3		)	32.6			(33.9		)	n/m	102.1			353.7			(251.6		)	(71)%
	Preferred stock dividends			2.6			2.6			—			0%	10.4			10.4			—			0%
	Net (loss) income applicable to common shareowners			$	(3.9	)	$	30.0		$	(33.9	)	n/m	$	91.7		$	343.3		$	(251.6	)	(73)%
	Basic net (loss) earnings per common share
			(Loss) earnings from continuing operations	$	(0.10	)	$	0.66						$	2.17		$	6.69
			Earnings from discontinued operations	0.01			0.05							0.01			1.50
	Basic net (loss) earnings per common share			$	(0.09	)	$	0.71						$	2.18		$	8.19
	Diluted net (loss) earnings per common share
			(Loss) earnings from continuing operations	$	(0.10	)	$	0.66						$	2.17		$	6.68
			Earnings from discontinued operations	0.01			0.05							0.01			1.49
	Diluted net (loss) earnings per common share			$	(0.09	)	$	0.71						$	2.18		$	8.17
	Weighted average common shares outstanding
		(in millions)
		- Basic		42.0			42.0							42.0			41.9
		- Diluted		42.0			42.1							42.1			42.0

Cincinnati Bell Inc.
Income Statements by Segment
(Unaudited)
(Dollars in millions)
			Three Months Ended								Twelve Months Ended
			December 31,				Change				December 31,				Change
			2016		2015		$			%	2016		2015		$			%
	Entertainment and Communications
	Revenue
		Data	$	86.4	$	81.5	$	4.9		6%	$	344.8	$	322.8	$	22.0		7%
		Voice	67.0		70.6		(3.6		)	(5)%	275.0		291.9		(16.9		)	(6)%
		Video	33.6		27.3		6.3			23%	125.7		96.6		29.1			30%
		Services and Other	6.0		8.4		(2.4		)	(29)%	23.3		32.4		(9.1		)	(28)%
		Total revenue	193.0		187.8		5.2			3%	768.8		743.7		25.1			3%
	Operating costs and expenses
		Cost of services and products	92.4		86.0		6.4			7%	359.5		331.5		28.0			8%
		Selling, general and administrative	34.5		37.6		(3.1		)	(8)%	141.6		150.9		(9.3		)	(6)%
		Depreciation and amortization	43.8		36.1		7.7			21%	168.6		129.2		39.4			30%
		Other*	7.7		—		7.7			n/m	8.5		2.2		6.3			n/m
		Total operating costs and expenses	178.4		159.7		18.7			12%	678.2		613.8		64.4			10%
	Operating income		$	14.6	$	28.1	$	(13.5	)	(48)%	$	90.6	$	129.9	$	(39.3	)	(30)%
	IT Services and Hardware
	Revenue
		Professional Services	$	26.8	$	27.7	$	(0.9	)	(3)%	$	106.7	$	105.5	$	1.2		1%
		Management and Monitoring	7.9		8.1		(0.2		)	(2)%	32.0		31.0		1.0			3%
		Unified Communications	9.7		9.6		0.1			1%	39.8		37.8		2.0			5%
		Cloud Services	13.3		9.7		3.6			37%	46.5		30.9		15.6			50%
		Telecom and IT hardware	37.8		49.4		(11.6		)	(23)%	205.7		230.2		(24.5		)	(11)%
		Total revenue	95.5		104.5		(9.0		)	(9)%	430.7		435.4		(4.7		)	(1)%
	Operating costs and expenses
		Cost of services and products	72.1		82.2		(10.1		)	(12)%	332.4		345.2		(12.8		)	(4)%
		Selling, general and administrative	15.1		13.6		1.5			11%	58.0		54.0		4.0			7%
		Depreciation and amortization	3.7		3.1		0.6			19%	13.5		12.3		1.2			10%
		Other*	3.3		0.5		2.8			n/m	3.6		3.3		0.3			9%
		Total operating costs and expenses	94.2		99.4		(5.2		)	(5)%	407.5		414.8		(7.3		)	(2)%
	Operating income		$	1.3	$	5.1	$	(3.8	)	(75)%	$	23.2	$	20.6	$	2.6		13%
		* Other includes restructuring and severance related charges, loss (gain) on sale or disposal of assets (net) and a curtailment loss.

Cincinnati Bell Inc.
Revenues by Segment
(Unaudited)
(Dollars in millions)
				Three Months Ended								Twelve Months Ended
				December 31,				Change				December 31,				Change
				2016		2015		$			%	2016		2015		$			%
Entertainment and Communications
	Consumer
		Strategic
			Data	$	27.8	$	20.6	$	7.2		35%	$	103.0	$	72.7	$	30.3		42%
			Voice	5.7		5.1		0.6			12%	21.7		19.7		2.0			10%
			Video	33.0		26.8		6.2			23%	123.6		94.8		28.8			30%
			Services and other	0.8		0.9		(0.1		)	(11)%	3.4		3.7		(0.3		)	(8)%
				67.3		53.4		13.9			26%	251.7		190.9		60.8			32%
		Legacy
			Data	9.8		11.6		(1.8		)	(16)%	44.2		49.5		(5.3		)	(11)%
			Voice	17.1		20.3		(3.2		)	(16)%	73.8		86.1		(12.3		)	(14)%
			Services and other	0.9		3.0		(2.1		)	(70)%	4.1		6.7		(2.6		)	(39)%
				27.8		34.9		(7.1		)	(20)%	122.1		142.3		(20.2		)	(14)%
		Integration
			Services and other	0.9		1.3		(0.4		)	(31)%	3.9		7.7		(3.8		)	(49)%
	Total consumer revenue			$	96.0	$	89.6	$	6.4		7%	$	377.7	$	340.9	$	36.8		11%
	Business
		Strategic
			Data	$	24.6	$	23.4	$	1.2		5%	$	96.5	$	89.6	$	6.9		8%
			Voice	13.9		11.2		2.7			24%	51.7		42.5		9.2			22%
			Video	0.6		0.5		0.1			20%	2.1		1.8		0.3			17%
			Services and other	1.0		0.8		0.2			25%	2.5		3.2		(0.7		)	(22)%
				40.1		35.9		4.2			12%	152.8		137.1		15.7			11%
		Legacy
			Data	4.9		5.6		(0.7		)	(13)%	20.3		23.2		(2.9		)	(13)%
			Voice	26.4		29.5		(3.1		)	(11)%	111.5		123.6		(12.1		)	(10)%
			Services and other	0.3		0.4		(0.1		)	(25)%	1.3		1.3		—			0%
				31.6		35.5		(3.9		)	(11)%	133.1		148.1		(15.0		)	(10)%
		Integration
			Services and other	0.5		0.6		(0.1		)	(17)%	1.8		2.6		(0.8		)	(31)%
	Total business revenue			$	72.2	$	72.0	$	0.2		0%	$	287.7	$	287.8	$	(0.1	)	0%
	Carrier
		Strategic
			Data	$	11.1	$	8.9	$	2.2		25%	$	45.0	$	37.7	$	7.3		19%
		Legacy
			Data	8.2		11.4		(3.2		)	(28)%	35.8		50.1		(14.3		)	(29)%
			Voice	3.9		4.5		(0.6		)	(13)%	16.3		20.0		(3.7		)	(19)%
			Services and other	1.6		1.4		0.2			14%	6.3		7.2		(0.9		)	(13)%
				13.7		17.3		(3.6		)	(21)%	58.4		77.3		(18.9		)	(24)%
	Total carrier revenue			$	24.8	$	26.2	$	(1.4	)	(5)%	$	103.4	$	115.0	$	(11.6	)	(10)%
Total Entertainment and Communications Revenue				$	193.0	$	187.8	$	5.2		3%	$	768.8	$	743.7	$	25.1		3%

Cincinnati Bell Inc.
Revenues by Segment
(Unaudited)
(Dollars in millions)
				Three Months Ended								Twelve Months Ended
				December 31,				Change				December 31,				Change
				2016		2015		$			%	2016		2015		$			%
IT Services and Hardware
	Business
		Strategic
			Professional Services	$	20.9	$	23.3	$	(2.4	)	(10)%	$	89.2	$	90.4	$	(1.2	)	(1)%
			Management and Monitoring	7.9		8.1		(0.2		)	(2)%	32.0		31.0		1.0			3%
			Unified Communications	7.3		7.0		0.3			4%	29.4		27.1		2.3			8%
			Cloud Services	13.3		9.7		3.6			37%	46.5		30.9		15.6			50%
				49.4		48.1		1.3			3%	197.1		179.4		17.7			10%
		Integration
			Professional Services	5.9		4.4		1.5			34%	17.5		15.1		2.4			16%
			Unified Communications	2.4		2.6		(0.2		)	(8)%	10.4		10.7		(0.3		)	(3)%
			Telecom and IT hardware	37.8		49.4		(11.6		)	(23)%	205.7		230.2		(24.5		)	(11)%
				46.1		56.4		(10.3		)	(18)%	233.6		256.0		(22.4		)	(9)%
Total IT Services and Hardware Revenue				$	95.5	$	104.5	$	(9.0	)	(9)%	$	430.7	$	435.4	$	(4.7	)	(1)%

Cincinnati Bell Inc.
Segment Information
(Unaudited)
(Dollars in millions)
			Three Months Ended										Twelve Months Ended
			December 31,						Change				December 31,						Change
			2016			2015			$			%	2016			2015			$			%
	Revenue
		Entertainment and Communications	$	193.0		$	187.8		$	5.2		3%	$	768.8		$	743.7		$	25.1		3%
		IT Services and Hardware	95.5			104.5			(9.0		)	(9)%	430.7			435.4			(4.7		)	(1)%
		Eliminations	(3.2		)	(3.0		)	(0.2		)	7%	(13.7		)	(11.3		)	(2.4		)	21%
		Total revenue	$	285.3		$	289.3		$	(4.0	)	(1)%	$	1,185.8		$	1,167.8		$	18.0		2%
	Cost of Services and Products
		Entertainment and Communications	$	92.4		$	86.0		$	6.4		7%	$	359.5		$	331.5		$	28.0		8%
		IT Services and Hardware	72.1			82.2			(10.1		)	(12)%	332.4			345.2			(12.8		)	(4)%
		Eliminations	(2.9		)	(1.6		)	(1.3		)	81%	(13.0		)	(6.1		)	(6.9		)	n/m
		Total cost of services and products	$	161.6		$	166.6		$	(5.0	)	(3)%	$	678.9		$	670.6		$	8.3		1%
	Selling, General and Administrative
		Entertainment and Communications	$	34.5		$	37.6		$	(3.1	)	(8)%	$	141.6		$	150.9		$	(9.3	)	(6)%
		IT Services and Hardware	15.1			13.6			1.5			11%	58.0			54.0			4.0			7%
		Corporate and eliminations	4.2			6.2			(2.0		)	(32)%	19.1			14.2			4.9			35%
		Total selling, general and administrative	$	53.8		$	57.4		$	(3.6	)	(6)%	$	218.7		$	219.1		$	(0.4	)	0%
	Depreciation and Amortization
		Entertainment and Communications	$	43.8		$	36.1		$	7.7		21%	$	168.6		$	129.2		$	39.4		30%
		IT Services and Hardware	3.7			3.1			0.6			19%	13.5			12.3			1.2			10%
		Corporate	—			—			—			n/m	0.1			0.1			—			0%
		Total depreciation and amortization	$	47.5		$	39.2		$	8.3		21%	$	182.2		$	141.6		$	40.6		29%
	Other*
		Entertainment and Communications	$	7.7		$	—		$	7.7		n/m	$	8.5		$	2.2		$	6.3		n/m
		IT Services and Hardware	3.3			0.5			2.8			n/m	3.6			3.3			0.3			9%
		Corporate	0.9			0.6			0.3			50%	0.9			3.0			(2.1		)	(70)%
		Total other	$	11.9		$	1.1		$	10.8		n/m	$	13.0		$	8.5		$	4.5		53%
	Operating Income
		Entertainment and Communications	$	14.6		$	28.1		$	(13.5	)	(48)%	$	90.6		$	129.9		$	(39.3	)	(30)%
		IT Services and Hardware	1.3			5.1			(3.8		)	(75)%	23.2			20.6			2.6			13%
		Corporate	(5.4		)	(8.2		)	2.8			(34)%	(20.8		)	(22.5		)	1.7			(8)%
		Total operating income	$	10.5		$	25.0		$	(14.5	)	(58)%	$	93.0		$	128.0		$	(35.0	)	(27)%
		* Other includes restructuring and severance related charges, loss (gain) on sale or disposal of assets (net), curtailment loss and transaction costs.

Cincinnati Bell Inc.
Segment Metric Information
(Unaudited)
(In thousands)
			December 31,	September 30,	June 30,	March 31,	December 31,
			2016	2016	2016	2016	2015
	Residential voice lines
		Legacy voice lines	117.5	124.6	131.7	138.7	146.4
		Fioptics voice lines	83.8	80.3	77.4	74.4	71.4
		Total residential voice lines	201.3	204.9	209.1	213.1	217.8
	Business voice lines
		Legacy voice lines	190.7	197.7	203.2	208.9	215.4
		VoIP lines*	131.7	121.2	112.7	107.0	89.5
		Total business voice lines	322.4	318.9	315.9	315.9	304.9
	Total voice lines		523.7	523.8	525.0	529.0	522.7
	Long distance lines		317.3	323.7	329.3	334.0	339.7
	Internet subscribers
		DSL	105.6	114.2	121.7	127.9	133.7
		Fioptics	197.6	185.6	175.0	164.5	153.7
		Total internet subscribers	303.2	299.8	296.7	292.4	287.4
	Fioptics video subscribers		137.6	133.4	126.8	120.0	114.4
	Fioptics units passed		533.4	509.5	478.7	453.7	432.0
	* VoIP lines include Fioptics business voice lines.

Cincinnati Bell Inc.
Net Debt (Non-GAAP) and Common Shares Outstanding
(Unaudited)
(Dollars and shares in millions)
		December 31,			December 31,
		2016			2015
Receivables Facility		$	89.5		$	17.6
Corporate Credit Agreement - Tranche B Term Loan		315.8			527.9
8 3/8% Senior Notes due 2020		—			478.5
7 1/4% Senior Notes due 2023		22.3			26.3
7% Senior Notes due 2024		625.0			—
Cincinnati Bell Telephone Notes		87.9			128.7
Capital leases and other debt		69.5			68.3
Net unamortized premium (discount)		8.5			(1.7		)
Unamortized note issuance costs		(11.9		)	(8.0		)
	Total debt	1,206.6			1,237.6
Less: Cash and cash equivalents		(9.7		)	(7.4		)
	Net debt (Non-GAAP)	$	1,196.9		$	1,230.2
Corporate Credit Agreement availability		$	150.0		$	175.0
Common shares outstanding		42.1			42.0

Cincinnati Bell Inc.
Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP)
(Unaudited)
(Dollars in millions)
			Three Months Ended December 31, 2016
			Entertainment & Communications			IT Services & Hardware			Corporate			Total Company
	Net loss (GAAP)											$	(1.3	)
	Less:
		Income from discontinued operations, net of tax										0.3
	Loss from continuing operations (GAAP)											$	(1.6	)
	Add:
		Income tax expense										1.2
		Interest expense										17.6
		Gain on sale of CyrusOne investment										(5.1		)
		Loss on extinguishment of debt, net										4.8
		Other income, net										(6.4		)
	Operating income (GAAP)		$	14.6		$	1.3		$	(5.4	)	$	10.5
	Add:
		Depreciation and amortization	43.8			3.7			—			47.5
		Restructuring and severance related charges	7.7			3.3			0.9			11.9
		Pension and other retirement plan expenses	3.8			—			0.5			4.3
	Adjusted EBITDA (Non-GAAP)		$	69.9		$	8.3		$	(4.0	)	$	74.2
	Adjusted EBITDA Margin (Non-GAAP)		36		%	9		%	—			26		%
			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, net										(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 (Non-GAAP)		37		%	9		%	—			25		%
	Year-over-year dollar change in Adjusted EBITDA		$	0.9		$	(0.8	)	$	3.2		$	3.3
	Year-over-year percentage change in Adjusted EBITDA		1		%	(9		)%	(44		)%	5		%

Cincinnati Bell Inc.
Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP)
(Unaudited)
(Dollars in millions)
			Twelve Months Ended December 31, 2016
			Entertainment & Communications			IT Services & Hardware			Corporate			Total Company
	Net income (GAAP)											$	102.1
	Less:
		Income from discontinued operations, net of tax										0.3
	Income from continuing operations (GAAP)											$	101.8
	Add:
		Income tax expense										61.1
		Interest expense										75.7
		Gain on sale of CyrusOne investment										(157.0		)
		Loss on extinguishment of debt, net										19.0
		Other income, net										(7.6		)
	Operating income (GAAP)		$	90.6		$	23.2		$	(20.8	)	$	93.0
	Add:
		Depreciation and amortization	168.6			13.5			0.1			182.2
		Restructuring and severance related charges	7.7			3.3			0.9			11.9
		Loss on sale or disposal of assets	0.8			0.3			—			1.1
		Pension and other retirement plan expenses	15.1			—			1.9			17.0
	Adjusted EBITDA (Non-GAAP)		$	282.8		$	40.3		$	(17.9	)	$	305.2
	Adjusted EBITDA Margin (Non-GAAP)		37		%	9		%	—			26		%
			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, net										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 and severance related 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 (Non-GAAP)		38		%	8		%	—			26		%
	Year-over-year dollar change in Adjusted EBITDA		$	—		$	3.5		$	(0.4	)	$	3.1
	Year-over-year percentage change in Adjusted EBITDA		0		%	10		%	2		%	1		%

Cincinnati Bell Inc.
Consolidated Statements of Cash Flows
(Unaudited)
(Dollars in millions)
			Three Months Ended						Twelve Months Ended
			December 31,						December 31,
			2016			2015			2016			2015
	Cash provided by operating activities		$	27.4		$	16.2		$	173.2		$	110.9
		Capital expenditures	(97.6		)	(77.9		)	(286.4		)	(283.6		)
		Decrease in restricted cash	90.7			—			—			—
		Dividends received from CyrusOne (equity method investment)	—			2.7			2.1			22.2
		Proceeds from sale of CyrusOne investment	8.5			47.6			189.7			643.9
		Other, net	(0.1		)	0.3			(0.9		)	0.7
	Cash provided by (used in) investing activities		1.5			(27.3		)	(95.5		)	383.2
		Proceeds from issuance of long-term debt	210.0			—			635.0			—
		Net increase (decrease) in corporate credit and receivables facilities with initial maturities less than 90 days	66.0			17.6			71.9			(1.6		)
		Repayment of debt	(298.3		)	(21.9		)	(759.3		)	(531.7		)
		Debt issuance costs	(2.7		)	—			(11.1		)	(0.4		)
		Dividends paid on preferred stock	(2.6		)	(2.6		)	(10.4		)	(10.4		)
		Common stock repurchase	—			—			(4.8		)	—
		Other, net	(0.1		)	—			3.3			(0.5		)
	Cash used in financing activities		(27.7		)	(6.9		)	(75.4		)	(544.6		)
	Net increase (decrease) in cash and cash equivalents		1.2			(18.0		)	2.3			(50.5		)
	Cash and cash equivalents at beginning of period		8.5			25.4			7.4			57.9
	Cash and cash equivalents at end of period		$	9.7		$	7.4		$	9.7		$	7.4
	Reconciliation of Cash Provided by Operating Activities (GAAP) to
		Free Cash Flow (Non-GAAP)
	Cash provided by operating activities		$	27.4		$	16.2		$	173.2		$	110.9
	Adjustments:
		Capital expenditures	(97.6		)	(77.9		)	(286.4		)	(283.6		)
		Restructuring and severance related payments	0.9			0.4			1.8			9.8
		Preferred stock dividends	(2.6		)	(2.6		)	(10.4		)	(10.4		)
		Dividends received from CyrusOne (equity method investment)	—			2.7			2.1			22.2
		Decommissioning of wireless towers	—			2.2			1.9			4.9
		Cash used by discontinued operations	0.1			3.1			5.1			27.6
		Free cash flow (Non-GAAP)	$	(71.8	)	$	(55.9	)	$	(112.7	)	$	(118.6	)
	Income tax payments		$	0.3		$	5.1		$	1.7		$	8.8

Cincinnati Bell Inc.
Free Cash Flow (Non-GAAP)
(Unaudited)
(Dollars in millions)
	Free Cash Flow (Non-GAAP) for the three months ended December 31, 2015	$	(55.9	)
	Increase in Adjusted EBITDA (Non-GAAP)	3.3
	Increase in capital expenditures	(19.7		)
	Decrease in interest payments	20.5
	Decrease in dividends received from CyrusOne	(1.5		)
	Increase in pension and postretirement payments and contributions	(3.1		)
	Change in working capital and other	(15.4		)
	Free Cash Flow (Non-GAAP) for the three months ended December 31, 2016	$	(71.8	)
	Free Cash Flow (Non-GAAP) for the twelve months ended December 31, 2015	$	(118.6	)
	Increase in Adjusted EBITDA (Non-GAAP)	3.1
	Increase in capital expenditures	(2.8		)
	Decrease in interest payments	37.4
	Decrease in dividends received from CyrusOne	(14.8		)
	Decrease in pension and postretirement payments and contributions	7.3
	Change in working capital and other	(24.3		)
	Free Cash Flow (Non-GAAP) for the twelve months ended December 31, 2016	$	(112.7	)

Cincinnati Bell Inc.
Capital Expenditures
(Unaudited)
(Dollars in millions)
	Three Months Ended
	Dec. 31, 2016		Sep. 30, 2016		Jun. 30, 2016		Mar. 31, 2016		Dec. 31, 2015
Entertainment and Communications	$	93.8	$	63.1	$	55.3	$	60.3	$	76.0
IT Services and Hardware	3.8		4.1		3.8		2.0		1.9
Corporate	—		—		0.1		0.1		—
Total capital expenditures	$	97.6	$	67.2	$	59.2	$	62.4	$	77.9

Cincinnati Bell Inc.
Reconciliation of Net Income (GAAP) to Normalized Net Income Applicable to Common Shareholders (Non-GAAP) and Adjusted Diluted Earnings Per Share (Non-GAAP)
(Unaudited)
(Dollars in millions, except per share amounts)
		Three Months Ended
		December 31, 2016				December 31, 2015
Net (loss) income applicable to common shareholders (GAAP)		$	(3.9	)		$	30.0
Special items:
	Selling, general and administrative	—				1.3			[B]
	Restructuring and severance related charges	11.9				—
	Loss on sale or disposal of assets, net	—				0.5
	Transaction costs	—				0.6			[C]
	Loss (gain) on extinguishment of debt	4.8				(0.4		)
	Gain on sale of CyrusOne investment	(5.1		)		(36.3		)
	Other income, net	(6.4		)	[A]	(2.9		)	[D]
	Income tax effect of special items *	(0.5		)		11.2
Total special items		4.7				(26.0		)
Less: income from discontinued operations, net of tax		0.3				2.1
Net income applicable to common shareowners, excluding special items (Non-GAAP)		$	0.5			$	1.9
Weighted average diluted shares outstanding		42.1				42.1
Diluted (loss) earnings per common share (GAAP)		$	(0.09	)		$	0.71
Adjusted diluted earnings per common share (Non-GAAP)		$	0.01			$	0.05
*	Special items have been tax effected such that the normalized effective tax rate is 36%.
A	Dividends declared by CyrusOne during 2016.
B	Employee contract termination costs.
C	Transaction costs associated with exploring opportunities to increase the scale of our IT Services and Hardware segment.
D	Adjust asset retirement obligation to lower expected costs associated with wireless tower decommissioning.

Cincinnati Bell Inc.
Reconciliation of Net Income (GAAP) to Normalized Net Income Applicable (Non-GAAP) to Common Shareholders and Adjusted Diluted Earnings Per Share (Non-GAAP)
(Unaudited)
(Dollars in millions, except per share amounts)
		Twelve Months Ended
		December 31, 2016				December 31, 2015
Net income applicable to common shareholders (GAAP)		$	91.7			$	343.3
Special items:
	Selling, general and administrative	—				6.6			[B]
	Restructuring and severance related charges	11.9				6.0
	Loss on sale or disposal of assets, net	1.1				0.8
	Curtailment loss	—				0.3
	Transaction costs	—				1.4			[C]
	Loss on extinguishment of debt	19.0				20.9
	Gain on sale of CyrusOne investment	(157.0		)		(449.2		)
	Other income, net	(7.5		)	[A]	(2.9		)	[D]
	Income tax effect of special items *	50.2				147.4
Total special items		(82.3		)		(268.7		)
Less: income from discontinued operations, net of tax		0.3				62.9
Net income applicable to common shareowners, excluding special items (Non-GAAP)		$	9.1			$	11.7
Weighted average diluted shares outstanding		42.1				42.0
Diluted earnings per common share (GAAP)		$	2.18			$	8.17
Adjusted diluted earnings per common share (Non-GAAP)		$	0.22			$	0.28
*	Special items have been tax effected such that the normalized effective tax rate is 36%.
A	Dividends declared by CyrusOne during 2016 totaled $6.4 million and an adjustment to asset retirement obligations lowered expected costs associated with wireless tower decommissioning by $1.1 million.
B	Pension related charges of $3.8 million associated with non-qualified excess plan and $2.8 million of employee contract termination costs.
C	Transaction costs associated with exploring opportunities to increase the scale of our IT Services and Hardware segment.
D	Adjusted asset retirement obligation to lower expected costs associated with wireless tower decommissioning.

Cincinnati Bell Inc.
Reconciliation of Operating Income (GAAP) Guidance to Adjusted EBITDA (Non-GAAP) Guidance
(Unaudited)
(Dollars in millions)
	2017 Operating Income (GAAP) Guidance	$	68
	Add:
	Depreciation and amortization	185
	Restructuring and severance related charges	25
	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 Fourth Quarter 2016 Results February 15, 2017

Today's Agenda Highlights, Segment Results and Financial Overview Ted Torbeck, Chief Executive 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 Chief Executive Officer 5

2016 Highlights 6 ▪ Generated year-over-year revenue and Adjusted EBITDA growth Strategic revenue increased more than $100 million, driving a 2% increase in consolidated revenue Adjusted EBITDA totaled $305 million, up $3 million over prior year ▪ Achieved full year 2016 financial guidance ▪ Improved health of our balance sheet - extended maturity date of high-yield bond at significantly lower coupon rate ▪ Net Income totaled $102 million, resulting in diluted earnings per share of $2.18 __ __

Q4 2016 Highlights and Financial Overview $193 $70 $96 $8 $(4)$(4) $188 $69 $105 $9 $(7)$(4) Fourth Quarter 2016 Highlights ▪ Consolidated Revenue for the quarter totaled $285 million, down $4 million compared to prior year Decline due to lower margin Telecom and IT hardware sales ▪ Revenue from strategic products totaled $166 million, up 15% compared to the prior year ▪ Strong fourth quarter Adjusted EBITDA of $74 million, up $3 million over the prior year ▪ Net loss totaled $1 million during the fourth quarter, resulting in diluted loss per share of $0.09 ▪ Issued $200 million of 7% Senior Notes due 2024 at 105% Proceeds used to repay $208 million of outstanding Tranche B Term Loan Entertainment & Communications IT Services & Hardware Eliminations Corporate ($ in millions) Revenue Adjusted EBITDA (Non-GAAP) Revenue Adjusted EBITDA (Non-GAAP) __ __ Q4 2016Q4 2015 $289 $71 $285 $74 7

Revenue Adj. EBITDA (Non-GAAP) Adj. EBITDA Margin (Non-GAAP) Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 $188 $190 $192 $193 $193 $69 $72 $72 $69 $70 37% 38% 38% 36% 36% Entertainment & Communications Revenue and Adjusted EBITDA 8 ▪ Strategic revenues for the quarter totaled $119 million, up 21% year-over-year ▪ Operating income totaled $15 million in the quarter - cost-out initiatives resulted in $8 million of restructuring and employee severance charges ▪ Adjusted EBITDA totaled $70 million in the fourth quarter, resulting in Adjusted EBITDA margins of 36% ▪ Total internet subscribers of 303,200 at the end of the fourth quarter, up 15,800 subs compared to a year ago ▪ Voice lines totaled 523,700 at year end, consistent with the prior year Business lines increased 6% Residential line decreased 8% __ __ ($ in millions)

Legacy IntegrationStrategic [1] 9 Entertainment & Communications Consumer Market Entertainment & Communications Consumer Integration revenue totaled $1 million in Q4 2015 and Q4 2016[1] Q4 2015 Q4 2016 $54 $67 $35 $28 $90 $96 ▪ Fioptics revenue growth continues to more than offset legacy declines Fioptics YTD revenue totaled $254 million, up 33% over the prior year ($ in millions) Y/Y (20)% 26% Q4 2015 Q4 2016 $27 $33 $20 $28$7 $8 Consumer Market Revenue Fioptics Revenue $54 $69 Y/Y 14% 40% 22% Video Internet Voice __ [2] Fioptics revenue includes $3 million and $4 million of business revenue in Q4 2015 and Q4 2016[2]

▪ Fioptics is available to 533,400 addresses - approximately 67% of Greater Cincinnati ▪ Fioptics Penetration: Video – 26%, Internet – 37%, Voice – 18% ▪ Fioptics monthly ARPU for the quarter was up approximately 3% from 2015. Q4 2016 ARPUs are as follows: Video – $82, Internet – $48, Voice – $28 ▪ Consumer video churn was 2.4% for the quarter - improved from 2.5% a year ago Single-family churn was 1.8% Apartment churn was 4.1% 10 Key Fioptics Metrics Total Fioptics Subscribers Video Internet Voice __ __ Q4 2015 Q4 2016 114 138 154 198 77 96 (in thousands) __ __

Legacy IntegrationStrategic 11 Q4 2015 Q4 2016 $35 $40 $36 $31 Entertainment & Communications Business & Carrier Markets $72 $72 Business Market Revenue ▪ Carrier revenue decreased from 2015 due to: On-going FCC switched access rate reductions National carrier network efficiency initiatives ($ in millions) Y/Y (11)% 12% __ __ Carrier Market Revenue ▪ Business revenue remains consistent with prior year Transitioning customers from copper network to strategic fiber-based products Q4 2015 Q4 2016 $9 $11 $17 $14 $26 $25 (21)% 25% Y/Y __ [1] Entertainment & Communications Business Integration revenue totaled $1 million in Q4 2015 and Q4 2016[1]

Strategic Revenue Integration Revenue Adj. EBITDA (Non-GAAP) Adj. EBITDA Margin (Non-GAAP) Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 $48 $48 $49 $51 $49 $56 $55 $61 $72 $46 $9 $10 $10 $12 $8 9% 10% 9% 9% 9% IT Services & Hardware Revenue and Adjusted EBITDA 12 ▪ Revenue decreased 9% from Q4 2015 Strategic Revenues totaled $49 million in Q4 2016, up 3% compared to the prior year Telecom & IT hardware revenue of $38 million for Q4 2016 was down from $49 million in the prior year ▪ Operating income and Adjusted EBITDA for the quarter totaled $1 million and $8 million, respectively ▪ Adjusted EBITDA margin was 9%, consistent with a year ago $104 $103 $110 $123 $95 __ __ ($ in millions)

2016 Free Cash Flow Q4 2016 YTD 2016 Cash Provided by Operating Activities (GAAP) $ 27 $ 173 Capital Expenditures (97) (286) Restructuring & Severance related payments 1 2 Preferred stock dividends (3) (10) Dividends received from CyrusOne (equity method investment) — 2 Cash used by discontinued operations — 6 Free cash flow (Non-GAAP) $ (72) $ (113) Selected 2017 Free Cash Flow Items ▪ Capital expenditures: $180 - $210 million ▪ Interest Payments ~ $70 million ▪ Pension and OPEB payments ~ $14 million 13 ($ in millions) Q4 2016 YTD 2016 Adjusted EBITDA (Non-GAAP) $ 74 $ 305 Interest Payments (12) (71) Pension & OPEB Payments (5) (13) Stock-based Compensation — (5) Restructuring & Severance related payments (1) (2) Cash used by discontinued operations — (6) Working Capital (29) (35) Cash Provided by Operating Activities (GAAP) $ 27 $ 173 [1] [1] Includes decommissioning of wireless towers[1]

Capital Expenditures 14 ($ in millions) Q4 2016 2016 YTD 2017 Low High Construction $ 31 $ 90 $ 40 $ 50 Installation 28 68 40 50 Value Added 9 22 10 10 Total Fioptics $ 68 $ 180 $ 90 $ 110 Other Strategic 18 62 50 60 Total Strategic 86 242 140 170 Legacy Maintenance 11 44 40 40 $ 97 $ 286 $ 180 $ 210 ▪ Invested $180 million in Fioptics in 2016: Construction costs totaled $90 million - passed an additional 101,400 customer locations Installation costs were $68 million • Record-high 43,900 Fioptics internet net activations • Video net activations totaled 23,200 - consistent with prior year ▪ Plan to pass 35,000 addresses with Fioptics in 2017: New addresses will be passed with a fiber-to- the-home product Extends coverage to more than 70% of Greater Cincinnati ▪ Other strategic represents success-based capital for fiber builds for business and new IT services projects __ __ __ __

Capital Structure 15 Leverage Leverage Adj. for CONE Investment 2012 2013 2014 2015 2016 3.9 Q4 2016 Cash and Cash Equivalents $ 10 Corporate Credit Facility 150 Receivables Facility 24 Liquidity $ 184 ▪ Issued additional $200 million of 7% Senior Notes due 2024 at 105% in the fourth quarter ▪ Proceeds from the sale of 0.2 million CyrusOne common shares totaled $9 million during the fourth quarter of 2016 ▪ Leverage as adjusted for our remaining investment in CyrusOne is well within a reasonable range ▪ Net operating loss ("NOL") balance was approximately $295 million as of December 31, 2016 ▪ Current liquidity appropriate to achieve operational objectives LiquidityLeverage Ratio 2016 leverage calculated based on 2016 Adjusted EBITDA results[1] [1] 3.5 ($ in millions)

2017 Guidance 2017 Guidance Revenue $ 1.2 billion Adjusted EBITDA $295 million* * Plus or minus 2 percent 16 FY 2016 Adjusted EBITDA FY 2017 Adjusted EBITDA Guidance $295 $297 Adjusted EBITDA Guidance ($ in millions) Non-cash post-retirement amortization adjustment $295 $295 [1] $10 [1]

Appendix 17

Consolidated Results ($ in millions, except per share amounts) Three Months Ended Twelve Months Ended December 31, December 31, 2016 2015 2016 2015 Revenue $ 285.3 $ 289.3 $ 1,185.8 $ 1,167.8 Costs and expenses Cost of services and products 161.6 166.6 678.9 670.6 Selling, general and administrative 53.8 57.4 218.7 219.1 Depreciation and amortization 47.5 39.2 182.2 141.6 Restructuring and severance related charges 11.9 — 11.9 6.0 Other — 1.1 1.1 2.5 Operating Income 10.5 25.0 93.0 128.0 Interest expense 17.6 20.9 75.7 103.1 Loss (gain) on extinguishment of debt, net 4.8 (0.4) 19.0 20.9 Gain on sale of CyrusOne investment (5.1) (36.3) (157.0) (449.2) Other (income) expense, net (6.4) (3.4) (7.6) 2.6 (Loss) income from continuing operations before income taxes (0.4) 44.2 162.9 450.6 Income tax expense 1.2 13.7 61.1 159.8 (Loss) income from continuing operations (1.6) 30.5 101.8 290.8 Income from discontinued operations, net of tax 0.3 2.1 0.3 62.9 Net (loss) income (1.3) 32.6 102.1 353.7 Preferred stock dividends 2.6 2.6 10.4 10.4 Net (loss) income applicable to common shareholders $ (3.9) $ 30.0 $ 91.7 $ 343.3 Basic net (loss) earnings per common share (Loss) earnings from continuing operations $ (0.10) $ 0.66 $ 2.17 $ 6.69 Earnings from discontinued operations 0.01 0.05 0.01 1.50 Basic net (loss) earnings per common share $ (0.09) $ 0.71 $ 2.18 $ 8.19 . Diluted net (loss) earnings per common share (Loss) earnings from continuing operations $ (0.10) $ 0.66 $ 2.17 $ 6.68 Earnings from discontinued operations 0.01 0.05 0.01 1.49 Diluted net (loss) earnings per common share $ (0.09) $ 0.71 $ 2.18 $ 8.17 18

Revenue Classifications - Entertainment and Communications Strategic Legacy Integration Data Voice Video Services and Other Fioptics Internet DSL (1) (> 10 meg) Ethernet Private Line MPLS (2) SONET (3) Dedicated Internet Access Wavelength Audio Conferencing Fioptics Voice VoIP (4) Fioptics Video Wiring Projects DSL (< 10 meg) DS0 (5), DS1, DS3 TDM (6) Traditional Voice Long Distance Switched Access Digital Trunking Advertising Directory Assistance Maintenance Information Services Wireless Handsets and Accessories 19 (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 Professional Services Unified Communications Cloud Services Management and Monitoring Telecom & IT Hardware Strategic Integration Consulting Staff Augmentation Voice Monitoring Managed IP Telephony Solutions Virtual Data Centers Storage Backup Network Management/Monitoring Security Installation Maintenance Hardware Software Licenses 20

Revenue – Strategic, Legacy and Integration ($ in millions) Q4 2016 Entertainment and Communications IT Services and Hardware Total Eliminations Total Strategic Data $ 63.5 $ — Voice 19.6 — Video 33.6 — Services and other 1.8 — Professional services — 20.9 Management and monitoring — 7.9 Unified communications — 7.3 Cloud services — 13.3 Total Strategic 118.5 49.4 167.9 (2.4) 165.5 Legacy Data $ 22.9 $ — Voice 47.4 — Services and other 2.8 — Total Legacy 73.1 — 73.1 (0.2) 72.9 Integration Services and other $ 1.4 $ — Professional services — 5.9 Unified communications — 2.4 Telecom and IT hardware — 37.8 Total Integration 1.4 46.1 47.5 (0.6) 46.9 $ 193.0 $ 95.5 $ 288.5 $ (3.2) $ 285.3 Eliminations 0.3 2.9 3.2 Total Revenue $ 192.7 $ 92.6 $ 285.3 21

Revenue – Strategic, Legacy and Integration ($ 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 $ 187.8 $ 104.5 $ 292.3 $ (3.0) $ 289.3 Eliminations 0.4 2.6 3.0 Total Revenue $ 187.4 $ 101.9 $ 289.3 22

Revenue – Strategic, Legacy and Integration ($ in millions) YTD 2016 Entertainment and Communications IT Services and Hardware Total Eliminations Total Strategic Data $ 244.5 $ — Voice 73.4 — Video 125.7 — Services and other 5.9 — Professional services — 89.2 Management and monitoring — 32.0 Unified communications — 29.4 Cloud services — 46.5 Total Strategic 449.5 197.1 646.6 (9.1) 637.5 Legacy Data $ 100.3 $ — Voice 201.6 — Services and other 11.7 — Total Legacy 313.6 — 313.6 (0.9) 312.7 Integration Services and other $ 5.7 $ — Professional services — 17.5 Unified communications — 10.4 Telecom and IT hardware — 205.7 Total Integration 5.7 233.6 239.3 (3.7) 235.6 $ 768.8 $ 430.7 $ 1,199.5 $ (13.7) $ 1,185.8 Eliminations 1.3 12.4 13.7 Total Revenue $ 767.5 $ 418.3 $ 1,185.8 23

Revenue – Strategic, Legacy and Integration ($ in millions) 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 $ 743.7 $ 435.4 $ 1,179.1 $ (11.3) $ 1,167.8 Eliminations 1.3 10.0 11.3 Total Revenue $ 742.4 $ 425.4 $ 1,167.8 24