Nokia's share price rose by just under 6% on Thursday morning, after the Finnish network equipment supplier reported "signs of stabilization" in its market and cited an improvement in order intake.

The group announced this morning that its sales had fallen by 23% in the fourth quarter (-21% at constant exchange rates), to 5.7 billion euros, due to the current climate of economic uncertainty, which it believes is holding back capital spending by telecom operators.

However, its gross margin fell by just 0.4 percentage points over the last three months of the year, to 43.1%, under the effect of its cost-cutting measures.

In its press release, Nokia states that the "difficult" environment that characterized fiscal 2023 is likely to continue into 2024, but says it is seeing "some signs of recovery" in business, in this case a pick-up in order intake in network infrastructures.

For 2024, the company says it expects operating profit of between 2.3 and 2.9 billion euros, a target in line with market forecasts.

The conversion rate from operating income to free cash flow is expected to be between 30% and 60%, below the consensus of 65%.

Despite this disappointment, the share price climbed 5.8% in early trading on Thursday, reducing its 12-month decline to 21%.

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