Fairfax Media chief executive Greg Hywood called on the Abbott government to push on with media reform as the company reported its first period of revenue growth since 2008, aided by acquisitions.
Speaking on the sidelines of the Macquarie Australia Conference, Mr Hywood suggested the digital age had left media diversity laws outdated.
"The government has to sort it out," he said. "I think clearly, the Communications Minister [Malcolm Turnbull] wants change and it depends on whether or not the government is prepared to invest the political capital to bring about change."
Mr Hywood said media legislation [such as the "two-out-of-three rule" that prohibits Fairfax, which controls a radio business and owns many newspapers, including The Age and The Sydney Morning Herald, from merging with any of the metropolitan TV networks – Seven, Nine or Ten] was "penned in the pre-internet era, where the main dominant issue was the maintenance of diversity."
"But it's really up to government," he added.
The government has told media CEOs it will not abolish ownership restrictions unless the industry can come to a broad consensus on holistic media reform, which currently appears to be a distant prospect.
Mr Hywood was speaking after telling investors that Fairfax had defied the "prevailing market view" of three years ago that its business was "profoundly challenged".
He pointed to the company's "strong growth vehicle in Domain" – its real estate advertising arm – its cost reductions and its net cash balance. But he warned investors that Fairfax is still incurring "costs to take advantage of growth opportunities".
The company said its revenues for continuing businesses edged up just under 1 per cent from January 1 to April 26, compared with the same period last year.
The growth was helped by Fairfax's full ownership of real estate business MMP since February and its taking control of the Macquarie Radio Network last month. Fairfax did not supply "like-for-like" revenue figures.
Revenues at the Metro Media division, which includes Domain, were up about 7 per cent, while publishing revenues fell 7 per cent.
Domain's revenue is up 54 per cent including the benefit of acquisitions of MMP and Allhomes, with its total digital business revenue climbing about 32 per cent and domain.com.au rising about 27 per cent.
Mr Hywood said the much-rumoured idea of a float of Domain was "for the never never", saying "we have focused on building that business to the full benefit of shareholders".
The Australian Community Media operations, which are going through a major cost-reduction program, had an 8 per cent drop in revenue, while the New Zealand business was up less than 0.5 per cent including a currency benefit.
Meanwhile, revenue at Fairfax radio stations was up 9 per cent on a continuing-business basis, which excludes 96FM (which has been sold) and includes four weeks of the combined Macquarie Radio Network.
