London midday: PartyGaming jumps on bwin merger

Company results have given traders plenty to ponder and shares are broadly higher, but online betting group PartyGaming is the star performer after announcing a merger with Austrian rival bwin.PartyGaming said the merger would create the world's largest listed online gaming business. Elsewhere in gambling, casino and bingo hall operator Rank is in demand after a rise in profits.Turning to larger companies AstraZeneca is a strong performer. The group's potential blockbuster heart drug Brilinta has received the backing of a US advisory panel just as the drug giant increased 2010 earnings targets for a second time this year following a strong performance from emerging markets and key drugs in the second quarter. Variety magazine publisher Reed Elsevier is also in demand after it said advertising and promotion markets are stabilising as underlying revenues increased 1% in the first half. The Anglo Dutch publishing firm said it had noted improved overall trading performance. Aero engines developer Rolls-Royce has motored ahead. It expects 2010 profit to be modestly higher than 2009 after a 'robust performance' in the first half of the year. Group revenue in the six months to 30 June 2010 rose to £5,421m from £5,142m at the interim stage last year.Royal Dutch Shell has trumped forecasts by almost doubling earnings in the second quarter, in stark contrast to loss-making rival BP, and has exceeded targets set last year for costs and staff cuts. Earnings on a current cost of supplies (CCS) basis came in at $4.5bn, up from $2.3bn a year ago. Analysts had expected somewhere around the $4bn mark.Telecoms leviathan BT reported a 17% rise in pre-tax profits in the first quarter and reiterated its full year outlook. The firm also said that it is in talks with the government over plans to cut public spending.Defence firm BAE Systems continues to expect revenue growth in 2010 despite the threat of cutbacks in government spending. The company saw sales grow 9% in the first half of 2010 to £10,643m from £9,747m the year before. On a like-for-like (LFL) basis, sales increased by 7%. Underlying earnings before interest, tax and amortisation improved 14% to £1,114m from £978m a year earlier.Pay TV and internet service provider British Sky Broadcasting posted slightly better than expected full-year figures but warned that the economic outlook remains uncertain. Underlying operating profits were up by 10% in the 12 months ended 30 June to £855m, while revenue rose to £5,912m from £5,359m. Cobham subsidiary Cobham Analytic Solutions has been selected as a prime contractor to provide infrastructure and deployment support services to the US Missile Defense Agency.An "impressive uplift" in the mineral resource estimate at Collahuasi, Chile's third largest copper mine, is good news for Xstrata and Anglo American who each own a 44% stake in the business.Diversified mining giant Kazakhmys said its operations delivered a solid performance in the first half of the year.In the FTSE 250, car dealer Inchcape moved ahead after it reported a better than expected 76% surge in half year pre-tax and said it intends to reinstate a final dividend for the current financial year.Scottish soft drinks maker AG Barr expects full year trading to beat forecasts after sales continued to perform ahead of the market in the first half.Connaught , the social housing group which issued a profit warning last month, rallied sharply on news that it has agreed a short-term overdraft facility and deferral of loan payments with its banks.Shares in electrical component maker Laird jumped after pre-tax profits almost doubled in the half year to June 30.Production rose in the three months to June 30 at Aquarius Platinum but the shares fell as the South African miner of the precious metal outlined safety measures that will hit future output.Electronic sensors firm Halma says trading since the start of the financial year has been strong and is in line with expectations.