Gracia C. Martore Gannett Inc. McLean

2006 CFO of the Year -
Public Company
Executive helping Gannett keep pace in changing industry

by Jessica Sabbath
for Virginia Business
July 2006

It’s not easy to be a media executive today. With the explosive growth of the Internet and 24-hour cable news stations, consumers have access to updated news with the click of a mouse or a remote. Not only do CFOs of media companies need financial finesse, they must help their companies devise creative solutions to adapt to rapidly changing habits of news consumption.

Gracia C. Martore, CFO of Gannett Co. Inc., a large media company that publishes USA Today, has been an important influence behind Gannett’s ability to keep pace in a challenging industry. “I have not run across another CFO where the CFO plays a more important role,” says Robert A. Bedingfield, a senior partner with Ernst & Young, Gannett’s auditor.

Virginia Business has named Martore the state’s 2006 CFO of the Year for public companies. In its nomination, the company says Martore played a vital role in diversifying Gannett’s holdings, which increased its non-daily publications from 400 to almost 1,000. Revenue from non-daily publications grew from $250 million to $450 million since Martore became CFO in 2003. The strategy broadens Gannett’s reach, helping the company gain readers who don’t subscribe to its daily newspapers. Studies show that Gannett now reaches 80 percent of readers in some markets — a major sales pitch for advertisers.

“She understands not only very complex financial situations affecting Gannett, but also understands the operating strategies of each of Gannett’s businesses,” says Thomas C. Palmer, group manager of SunTrust Banks’ Media and Communications Finance Group, a financial provider for Gannett.

Martore was an early advocate of increasing Gannett’s Internet presence. Online revenue has grown from 1 percent to 5 percent of Gannett’s total revenue since 2003. Martore also oversaw the acquisitions of Captivate Network Inc., which delivers content to elevator TV screens, and the media company PointRoll Inc. whose technology helps advertisers create non-intrusive online ads.

Under Martore’s tenure, Gannett’s revenues have grown 14.8 percent to $7.6 billion while profit margins for continuing operations have ranged between 16 percent and 18 percent. Company executives and shareholders showed their confidence in Martore, promoting her to an executive vice president in April.

“ There’s a lot going on with Sarbanes-Oxley and increased scrutiny by the [Securities and Exchange Commission] and shareholders,” says Bedingfield. “There are a lot of mines in the mine field, and she’s very adept at making her way through it in a reasonable period of time.”

Martore joined Gannett as an assistant treasurer in 1985, later holding key roles in the company’s treasury group and investor relations. Previously, she spent 12 years in the banking industry.

“ She has a spirit that is kind of contagious,” says Bedingfield. “I think it facilitates a team spirit, pulling people together to solve a problem and make a recommendation in a very positive, thorough and very timely matter.”