[July 30, 2015]

Cincinnati Bell Reports Second Quarter 2015 Results

Cincinnati Bell Inc. (NYSE:CBB) today announced financial results for the second quarter of 2015, highlighted by strategic revenue totaling $130 million as demand for these products remains strong. Fioptics revenue for the quarter totaled $45 million, up 32 percent compared to the prior year and the Company now has more than 100 thousand video subscribers. Strategic managed and professional services revenue was $45 million in the quarter, up 32 percent compared to the prior year.

"Our investments continue to generate impressive strategic revenue growth for both consumer and business markets. The strong first-half performance has us well positioned to achieve the high-end of our 2015 financial guidance," said Ted Torbeck, president and chief executive officer. Torbeck also added, "We continue to opportunistically monetize our CyrusOne stake and have significantly improved the health of our balance sheet, expanding options available to further enhance the capital structure."

CONSOLIDATED RESULTS²

Consolidated revenue for the second quarter of 2015 was $286 million, up $3 million from the prior year. Operating income for the quarter totaled $30 million and Adjusted EBITDA equaled $75 million. Net income was $192 million, including income from discontinued operations. In the second quarter we recognized a $295 million gain on the sale of 14 million CyrusOne partnership units.

Entertainment and Communications Segment

• Entertainment and Communications revenue for the quarter totaled $182 million, up $1 million compared to the prior year after excluding revenue from services provided to our wireless business which discontinued operations effective March 31, 2015.
  • Fioptics revenue for the quarter was $45 million, up 32 percent from the prior year.
  • Strategic revenue for business customers totaled $42 million (including $2 million of Fioptics revenue) for the quarter, up $2 million year-over-year after excluding revenue for services provided to our wireless operations in the prior year.
• Operating income and Adjusted EBITDA for the quarter totaled $30 million and $70 million, respectively.
• Adjusted EBITDA margin³ for the quarter was 39 percent.
• Fioptics video subscribers totaled 101,500 at the end of the second quarter, up 23 percent compared to the same period in 2014.
• Record high 275 thousand total internet subscribers at the end of the second quarter, up 5 thousand from a year ago.
• In the second quarter of 2015, we passed an additional 24,700 units with Fioptics which is now available to 382 thousand households within Greater Cincinnati.

IT Services and Hardware Segment

• Revenue of $106 million for the quarter was up 5 percent over the prior year.
  • Strategic managed and professional services revenue was $45 million in the quarter, up 32 percent compared to the prior year.
  • Hardware revenue was $60 million for the quarter, compared to $66 million in the second quarter of 2014.
• Operating income totaled $6 million for the quarter, up $3 million compared to a year ago.
• Adjusted EBITDA was $10 million for the quarter, up $4 million from the second quarter of 2014.

Investment in CyrusOne

• Completed the sale of 14 million partnership units for cash proceeds totaling $426 million.
• Announced agreement to sell 6 million partnership units in July for cash proceeds of $170 million.
• Remaining 11 percent ownership of CyrusOne valued at approximately $250 million.

2015 Outlook

Cincinnati Bell reaffirms its financial guidance for 2015:

*Plus or minus 2 percent

Conference Call/Webcast

Cincinnati Bell will host a conference call on July 30 at 10:00 a.m. (ET) to discuss its results for the second quarter of 2015. A live webcast of the call will be available via the Investor Relations section of www.cincinnatibell.com. The conference call dial-in number is (888) 256-9124. Callers located outside of the U.S. and Canada may dial (913) 312-1443. A taped replay of the conference call will be available approximately one hour after the conclusion of the call until 1:00 p.m. on Thursday, August 13, 2015. 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 3509850. An archived version of the webcast will also be available in the Investor Relations section of www.cincinnatibell.com.

Safe Harbor Note

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

Use of Non-GAAP Financial Measures

This press release contains information about adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA), Adjusted EBITDA margin, net debt, net income excluding special items and free cash flow. These are non-GAAP financial measures used by Cincinnati Bell management when evaluating results of operations and cash flow. Management believes these measures also provide users of the financial statements with additional and useful comparisons of current results of operations and cash flows with past and future periods. Non-GAAP financial measures should not be construed as being more important than comparable GAAP measures. Detailed reconciliations of these non-GAAP financial measures to comparable GAAP financial measures have been included in the tables distributed with this release and are available in the Investor Relations section of www.cincinnatibell.com.

¹Adjusted EBITDA provides a useful measure of operational performance. The company defines Adjusted EBITDA as GAAP operating income plus depreciation, amortization, restructuring charges, (gain) loss on sale or disposal of assets, transaction costs, curtailment gain (loss), asset impairments, components of pension and other retirement plan costs (including interest costs, asset returns, and amortization of actuarial gains and losses), and other special items. Adjusted EBITDA should not be considered as an alternative to comparable GAAP measures of profitability and may not be comparable with the measure as defined by other companies.

²Consolidated Results for the three and six months ended June 30, 2015 and 2014 report our former wireless segment results as discontinued operations. Effective March 31, 2015, the Company no longer provides wireless services.

³Adjusted EBITDA margin provides a useful measure of operational performance. The company defines Adjusted EBITDA margin as Adjusted EBITDA divided by revenue. Adjusted EBITDA margin should not be considered as an alternative to comparable GAAP measures of profitability and may not be comparable with the measure as defined by other companies.

Free cash flow provides a useful measure of operational performance, liquidity and financial health. The company defines free cash flow as cash provided by (used in) operating, financing and investing activities, adjusted for the issuance and repayment of debt, debt issuance costs, the repurchase of common stock, and the proceeds from the sale or the use of funds from the purchase of business operations, including transaction costs. Free cash flow should not be considered as an alternative to net income (loss), operating income (loss), cash flow from operating activities, or the change in cash on the balance sheet and may not be comparable with free cash flow as defined by other companies. Although the company feels that there is no comparable GAAP measure for free cash flow, the attached financial information reconciles free cash flow to the net increase (decrease) in cash and cash equivalents.

Net debt provides a useful measure of liquidity and financial health. The company defines net debt as the sum of the face amount of short-term and long-term debt and unamortized premium and/or discount, offset by cash and cash equivalents.

Net 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. (NYSE: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. Cincinnati Bell effectively owns approximately 11 percent of CyrusOne (NASDAQ: CONE), which is held in the form of CyrusOne common stock and CyrusOne LP partnership units. CyrusOne specializes in highly reliable enterprise-class, carrier-neutral data center properties and provides mission-critical data center facilities that protect and ensure the continued operation of IT infrastructure for its customers. For more information, please visit www.cincinnatibell.com.

* Other includes restructuring charges, loss (gain) on sale or disposal of assets, net and a curtailment loss.

* Other includes restructuring charges, loss (gain) on sale or disposal of assets, net, curtailment loss and transaction costs.

* VoIP lines include Fioptics business voice lines.

*For the quarter ended June 30, 2015 and 2014, our wireless business generated free cash flow of ($5.4) million and $12.9 million, respectively. For the six months ended June 30, 2015 and 2014, our wireless business generated free cash flow of ($18.4) million and $17.1 million, respectively. Wireless operations are now reported as discontinued operations within the consolidated financial statements.