Yahoo’s shares jumped by 10 per cent in after-market trading on Tuesday as Wall Street breathed a sigh of relief that the long-awaited turnround in the internet company’s online advertising business appeared to be gaining steam.

“While we have a lot more to do, we have taken some important steps and made a lot of progress,” said Jerry Yang, who took over as chief executive officer in June as the company struggled to reverse a slide in its share of internet advertising.