UPDATE 1-Telefonica Deutschland adds subscribers in Q3, confirms outlook

(Adds detail, CEO quote)

BERLIN, Nov 4 (Reuters) - Telefonica Deutschland reported a 1.9% rise in third-quarter revenue on Monday as it added 392,000 subscribers and confirmed its annual forecast.

Mobile service revenue gained by 1.4%, reflecting a steady improvement at Germany’s No.2 mobile operator, which was created out of a merger with E-Plus five years ago.

“We are seeing a strong influx of customers and sales are improving every quarter,” Chief Executive Officer Markus Haas said in a statement. “We want to build on this and will continue to invest heavily in our network and products.”

Adjusted operating income before depreciation and amortisation (OIBDA) rose by 25.8% to 601 million euros ($671 million). However, the figure did not include regulatory effects that have created headwinds for telecom operators in Germany.

For the first nine months of 2019, OIBDA was up 0.8%, including exceptional and regulatory effects, said the company, which is controlled by Spain’s Telefonica. It did not give a comparable figure for the third quarter.

Telefonica Deutschland, which operates under the O2 brand, confirmed guidance for broadly stable revenue growth this year, and broadly stable to slightly positive OIBDA - both excluding the negative impact of regulatory effects.

$1 = 0.8955 euros Reporting by Douglas Busvine, editing by Riham Alkousaa and Aditya Soni