Cincinnati Bell (BDWGP) 8-K Results of Operations and Financial Condition

Exhibit 99.1

Cincinnati Bell Inc.

Segment Information

(Unaudited)

(dollars in millions)

	2005															2006											2007
	Three months ended															Three months ended											Three months ended
Wireline	Mar 31			Jun 30			Sep 30			Dec 31			Annual			Mar 31		Jun 30		Sep 30		Dec 31			Annual		Mar 31		Jun 30		YTD
Revenue
Voice - local service	$	125.9		$	124.4		$	121.4		$	120.3		$	491.9		$	118.7	$	116.7	$	115.2	$	113.4		$	463.9	$	112.7	$	110.3	$	223.0
Data		53.2			54.2			54.9			56.9			219.2			56.6		58.8		60.7		62.0			238.2		62.5		63.5		126.0
Long distance		17.1			17.3			17.5			17.6			69.5			17.9		18.1		18.0		17.8			71.8		18.7		19.8		38.5
Other		9.0			9.5			9.3			9.3			37.1			8.8		9.8		8.6		9.2			36.5		9.8		10.5		20.3
Total revenue		205.2			205.4			203.1			204.1			817.7			202.0		203.4		202.5		202.4			810.4		203.7		204.1		407.8
Operating costs and expenses
Cost of services and products		64.1			65.0			64.2			67.0			260.1			65.3		63.6		65.9		69.1			264.1		65.5		67.7		133.1
Selling, general and administrative		37.7			35.9			36.4			33.3			143.3			34.5		36.2		37.7		37.0			145.5		37.9		38.4		76.3
Depreciation and amortization		27.5			27.3			27.6			27.6			110.1			26.1		26.0		27.2		26.9			106.2		25.8		26.0		52.0
Restructuring charges		—			—			—			1.5			1.5			—		—		3.0		(0.2	)		2.8		2.4		—		2.4
Total operating costs and expenses		129.3			128.2			128.2			129.4			515.0			125.9		125.8		133.8		132.8			518.6		131.6		132.1		263.8
Operating income	$	75.9		$	77.2		$	74.9		$	74.7		$	302.7		$	76.1	$	77.6	$	68.7	$	69.6		$	291.8	$	72.1	$	72.0	$	144.0
	2005															2006											2007
	Three months ended															Three months ended											Three months ended
Wireless	Mar 31			Jun 30			Sep 30			Dec 31			Annual			Mar 31		Jun 30		Sep 30		Dec 31			Annual		Mar 31		Jun 30		YTD
Revenue
Service	$	55.6		$	55.3		$	52.3		$	51.5		$	214.8		$	55.3	$	59.9	$	59.3	$	61.3		$	235.7	$	62.2	$	67.4	$	129.7
Equipment		5.6			5.0			5.9			6.3			22.7			6.5		6.5		5.7		7.5			26.3		6.3		6.1		12.3
Total revenue		61.2			60.3			58.2			57.8			237.5			61.8		66.4		65.0		68.8			262.0		68.5		73.5		142.0
Operating costs and expenses
Cost of services and products		29.3			28.0			34.9			37.1			129.3			36.2		38.1		35.4		36.3			146.1		34.7		37.4		72.1
Selling, general and administrative		13.4			13.6			14.2			14.9			56.1			14.3		15.1		15.8		17.4			62.6		17.1		16.5		33.6
Depreciation and amortization		14.9			20.2			13.2			13.1			61.5			7.5		8.7		7.5		9.4			33.1		9.2		9.3		18.4
Asset impairments and other charges		23.7			—			—			18.6			42.3			—		—		—		—			—		—		—		—
Total operating costs and expenses		81.3			61.8			62.3			83.7			289.2			58.0		61.9		58.7		63.1			241.8		61.0		63.2		124.1
Operating income/(loss)	$	(20.1	)	$	(1.5	)	$	(4.1	)	$	(25.9	)	$	(51.7	)	$	3.8	$	4.5	$	6.3	$	5.7		$	20.2	$	7.5	$	10.3	$	17.9
	2005															2006											2007
	Three months ended															Three months ended											Three months ended
Technology Solutions	Mar 31			Jun 30			Sep 30			Dec 31			Annual			Mar 31		Jun 30		Sep 30		Dec 31			Annual		Mar 31		Jun 30		YTD
Revenue
Telecom and IT equipment distribution	$	17.2		$	43.0		$	31.4		$	35.1		$	126.7		$	26.5	$	45.3	$	42.6	$	47.8		$	162.2	$	32.4	$	39.7	$	72.1
Data center and managed services		7.2			9.0			10.3			10.6			37.1			10.6		11.3		12.8		12.7			47.4		14.4		15.4		29.8
Professional services		2.7			2.5			1.8			1.8			8.9			1.7		1.6		1.9		1.8			7.0		1.7		2.4		4.1
Total revenue		27.1			54.5			43.5			47.5			172.7			38.8		58.2		57.3		62.3			216.6		48.5		57.5		106.0
Operating costs and expenses
Cost of services and products		20.3			45.1			35.6			38.4			139.5			30.5		48.0		45.8		50.9			175.2		37.9		45.7		83.6
Selling, general and administrative		4.1			4.5			4.4			4.4			17.4			5.2		5.4		5.4		5.9			21.9		6.8		6.3		13.1
Depreciation and amortization		0.5			0.6			0.7			0.6			2.3			0.8		1.0		0.9		1.0			3.7		1.3		1.5		2.8
Restructuring charges		—			—			—			0.1			0.1			—		—		—		—			—		—		—		—
Asset impairments and other charges		(0.1	)		—			—			0.1			—			—		—		—		—			—		—		—		—
Total operating costs and expenses		24.8			50.2			40.7			43.6			159.3			36.5		54.4		52.1		57.8			200.8		46.0		53.5		99.5
Operating income	$	2.3		$	4.3		$	2.8		$	3.9		$	13.4		$	2.3	$	3.8	$	5.2	$	4.5		$	15.8	$	2.5	$	4.0	$	6.5

Note:    The summation of quarterly results will not necessarily equal the annual and YTD totals due to rounding.

Cincinnati Bell Inc.

Segment Information

(Unaudited)

(dollars in millions)

	2007
	Three months ended
	Mar 31			Jun 30			YTD
Revenue
Wireline	$	203.7		$	204.1		$	407.8
Wireless		68.5			73.5			142.0
Technology Solutions		48.5			57.5			106.0
Corporate and eliminations		(5.4	)		(6.0	)		(11.4	)
Total revenue	$	315.3		$	329.1		$	644.4
Cost of Services and Products
Wireline	$	65.5		$	67.7		$	133.1
Wireless		34.7			37.4			72.1
Technology Solutions		37.9			45.7			83.6
Corporate and eliminations		(5.0	)		(5.5	)		(10.4	)
Total cost of services and products	$	133.1		$	145.3		$	278.4
Selling, General & Administrative
Wireline	$	37.9		$	38.4		$	76.3
Wireless		17.1			16.5			33.6
Technology Solutions		6.8			6.3			13.1
Corporate and eliminations		3.7			4.6			8.3
Total selling, general & administrative	$	65.5		$	65.8		$	131.3
Depreciation and Amortization
Wireline	$	25.8		$	26.0		$	52.0
Wireless		9.2			9.3			18.4
Technology Solutions		1.3			1.5			2.8
Corporate and eliminations		—			—			—
Total depreciation and amortization	$	36.3		$	36.8		$	73.2
Restructuring charges
Wireline	$	2.4		$	—		$	2.4
Wireless		—			—			—
Technology Solutions		—			—			—
Corporate and eliminations		0.1			0.1			0.2
Total restructuring charges	$	2.5		$	0.1		$	2.6
Operating Income
Wireline	$	72.1		$	72.0		$	144.0
Wireless		7.5			10.3			17.9
Technology Solutions		2.5			4.0			6.5
Corporate and eliminations		(4.2	)		(5.2	)		(9.5	)
Total operating income	$	77.9		$	81.1		$	158.9

Note:    The summation of quarterly results will not necessarily equal the YTD totals due to rounding.

Cincinnati Bell Inc.

Segment Information

(Unaudited)

(dollars in millions)

	2006
	Three months ended
	Mar 31			Jun 30			Sep 30			Dec 31			Annual
Revenue
Wireline	$	202.0		$	203.4		$	202.5		$	202.4		$	810.4
Wireless		61.8			66.4			65.0			68.8			262.0
Technology Solutions		38.8			58.2			57.3			62.3			216.6
Corporate and eliminations		(4.4	)		(4.7	)		(4.7	)		(5.0	)		(18.9	)
Total revenue	$	298.2		$	323.3		$	320.1		$	328.5		$	1,270.1
Cost of Services and Products
Wireline	$	65.3		$	63.6		$	65.9		$	69.1		$	264.1
Wireless		36.2			38.1			35.4			36.3			146.1
Technology Solutions		30.5			48.0			45.8			50.9			175.2
Corporate and eliminations		(4.0	)		(4.2	)		(4.2	)		(4.5	)		(17.1	)
Total cost of services and products	$	128.0		$	145.5		$	142.9		$	151.8		$	568.3
Selling, General & Administrative
Wireline	$	34.5		$	36.2		$	37.7		$	37.0		$	145.5
Wireless		14.3			15.1			15.8			17.4			62.6
Technology Solutions		5.2			5.4			5.4			5.9			21.9
Corporate and eliminations		4.3			5.0			0.6			4.4			14.2
Total selling, general & administrative	$	58.3		$	61.7		$	59.5		$	64.7		$	244.2
Depreciation and Amortization
Wireline	$	26.1		$	26.0		$	27.2		$	26.9		$	106.2
Wireless		7.5			8.7			7.5			9.4			33.1
Technology Solutions		0.8			1.0			0.9			1.0			3.7
Corporate and eliminations		—			—			—			0.1			—
Total depreciation and amortization	$	34.4		$	35.7		$	35.6		$	37.4		$	143.0
Restructuring Charges, Shareholder Claim Settlement, and Gain on Sale of Broadband Assets
Wireline	$	—		$	—		$	3.0		$	(0.2	)	$	2.8
Wireless		—			—			—			—			—
Technology Solutions		—			—			—			—			—
Corporate and eliminations		6.4			(2.8	)		(4.4	)		0.1			(0.7	)
Total restructuring charges, shareholder claim settlement, and gain on sale of broadband assets	$	6.4		$	(2.8	)	$	(1.4	)	$	(0.1	)	$	2.1
Operating Income
Wireline	$	76.1		$	77.6		$	68.7		$	69.6		$	291.8
Wireless		3.8			4.5			6.3			5.7			20.2
Technology Solutions		2.3			3.8			5.2			4.5			15.8
Corporate and eliminations		(11.1	)		(2.7	)		3.3			(5.1	)		(15.3	)
Total operating income	$	71.1		$	83.2		$	83.5		$	74.7		$	312.5

Note:    The summation of quarterly results will not necessarily equal the annual totals due to rounding.

Cincinnati Bell Inc.

Segment Information

(Unaudited)

(dollars in millions)

	2005
	Three months ended
	Mar 31			Jun 30			Sep 30			Dec 31			Annual
Revenue
Wireline	$	205.2		$	205.4		$	203.1		$	204.1		$	817.7
Wireless		61.2			60.3			58.2			57.8			237.5
Technology Solutions		27.1			54.5			43.5			47.5			172.7
Corporate and eliminations		(4.9	)		(4.8	)		(4.5	)		(4.1	)		(18.3	)
Total revenue	$	288.6		$	315.4		$	300.3		$	305.3		$	1,209.6
Cost of Services and Products
Wireline	$	64.1		$	65.0		$	64.2		$	67.0		$	260.1
Wireless		29.3			28.0			34.9			37.1			129.3
Technology Solutions		20.3			45.1			35.6			38.4			139.5
Corporate and eliminations		(4.5	)		(4.4	)		(4.1	)		(3.7	)		(16.6	)
Total cost of services and products	$	109.2		$	133.7		$	130.6		$	138.8		$	512.3
Selling, General & Administrative
Wireline	$	37.7		$	35.9		$	36.4		$	33.3		$	143.3
Wireless		13.4			13.6			14.2			14.9			56.1
Technology Solutions		4.1			4.5			4.4			4.4			17.4
Corporate and eliminations		2.9			3.4			0.8			(2.9	)		4.2
Total selling, general & administrative	$	58.1		$	57.4		$	55.8		$	49.7		$	221.0
Depreciation and Amortization
Wireline	$	27.5		$	27.3		$	27.6		$	27.6		$	110.1
Wireless		14.9			20.2			13.2			13.1			61.5
Technology Solutions		0.5			0.6			0.7			0.6			2.3
Corporate and eliminations		0.1			0.3			0.3			0.2			0.8
Total depreciation and amortization	$	43.0		$	48.4		$	41.8		$	41.5		$	174.7
Asset Impairments, Restructuring Charges, and Other Charges (Credits)
Wireline	$	—		$	—		$	—		$	1.5		$	1.5
Wireless		23.7			—			—			18.6			42.3
Technology Solutions		(0.1	)		—			—			0.2			0.1
Corporate and eliminations		(0.5	)		—			—			(0.6	)		(1.1	)
Total asset impairments, restructuring charges, and other charges (credits)	$	23.1		$	—		$	—		$	19.7		$	42.8
Operating Income/(loss)
Wireline	$	75.9		$	77.2		$	74.9		$	74.7		$	302.7
Wireless		(20.1	)		(1.5	)		(4.1	)		(25.9	)		(51.7	)
Technology Solutions		2.3			4.3			2.8			3.9			13.4
Corporate and eliminations		(2.9	)		(4.1	)		(1.5	)		2.9			(5.6	)
Total operating income	$	55.2		$	75.9		$	72.1		$	55.6		$	258.8

Note:    The summation of quarterly results will not necessarily equal the annual totals due to rounding.

Cincinnati Bell Inc.

Reconciliation of Adjusted EBITDA (Non-GAAP) to Operating Income (GAAP)

(Unaudited)

(dollars in millions)

	2005															2006												2007
	Three months ended															Three months ended												Three months ended
	Mar 31			Jun 30			Sep 30			Dec 31			Annual			Mar 31		Jun 30		Sep 30			Dec 31			Annual		Mar 31		Jun 30		YTD
Wireline
Operating Income (GAAP)	$	75.9		$	77.2		$	74.9		$	74.7		$	302.7		$	76.1	$	77.6	$	68.7		$	69.6		$	291.8	$	72.1	$	72.0	$	144.0
Add:
Depreciation and amortization		27.5			27.3			27.6			27.6			110.1			26.1		26.0		27.2			26.9			106.2		25.8		26.0		52.0
Restructuring charges		—			—			—			1.5			1.5			—		—		3.0			(0.2	)		2.8		2.4		—		2.4
EBITDA (Non-GAAP)	$	103.4		$	104.5		$	102.5		$	103.8		$	414.3		$	102.2	$	103.6	$	98.9		$	96.3		$	400.8	$	100.3	$	98.0	$	198.4
	2005															2006												2007
	Three months ended															Three months ended												Three months ended
	Mar 31			Jun 30			Sep 30			Dec 31			Annual			Mar 31		Jun 30		Sep 30			Dec 31			Annual		Mar 31		Jun 30		YTD
Wireless
Operating Income/(loss) (GAAP)	$	(20.1	)	$	(1.5	)	$	(4.1	)	$	(25.9	)	$	(51.7	)	$	3.8	$	4.5	$	6.3		$	5.7		$	20.2	$	7.5	$	10.3	$	17.9
Add:
Depreciation and amortization		14.9			20.2			13.2			13.1			61.5			7.5		8.7		7.5			9.4			33.1		9.2		9.3		18.4
Asset impairments and other charges		23.7			—			—			18.6			42.3			—		—		—			—			—		—		—		—
EBITDA (Non-GAAP)	$	18.5		$	18.7		$	9.1		$	5.8		$	52.1		$	11.3	$	13.2	$	13.8	��	$	15.1		$	53.3	$	16.7	$	19.6	$	36.3
	2005															2006												2007
	Three months ended															Three months ended												Three months ended
	Mar 31			Jun 30			Sep 30			Dec 31			Annual			Mar 31		Jun 30		Sep 30			Dec 31			Annual		Mar 31		Jun 30		YTD
Technology Solutions
Operating Income (GAAP)	$	2.3		$	4.3		$	2.8		$	3.9		$	13.4		$	2.3	$	3.8	$	5.2		$	4.5		$	15.8	$	2.5	$	4.0	$	6.5
Add:
Depreciation and amortization		0.5			0.6			0.7			0.6			2.3			0.8		1.0		0.9			1.0			3.7		1.3		1.5		2.8
Restructuring charges, asset impairments and other charges		(0.1	)		—			—			0.2			0.1			—		—		—			—			—		—		—		—
EBITDA (Non-GAAP)	$	2.7		$	4.9		$	3.5		$	4.7		$	15.8		$	3.1	$	4.8	$	6.1		$	5.5		$	19.5	$	3.8	$	5.5	$	9.3

Note:    The summation of quarterly results will not necessarily equal the annual and YTD totals due to rounding.