Education provider Navitas expects second-half earnings to be weaker amid uncertainty over student visa rules.

Navitas on Tuesday reported a net profit of $35.4 million for the six months to December 31, up from $32.2 million in the previous corresponding period.

The company said its earnings would have been down about six per cent, if it weren’t for the contribution from its recent acquisition of video and audio college SAE.

Navitas chief executive Rod Jones said the company’s Australian operations were experiencing a tough period while the federal government reviews student visa rules.

“In terms of international students, we’re not going to see any real improvement, in my opinion, until we finally get this Knight Review stuff locked down,” Mr Jones said on Tuesday.

Changes recommended by the review are expected to be implemented by mid 2012.

“We’re very supportive of what’s been proposed but the devil was always going to be in the detail,” Mr Jones said.

“At the moment, the detail is proving fairly complex.”

Mr Jones said agents seemed to be reluctant to send students to Australia until the government reveals its plans for visa rules.

“Alongside that you’ve got students and parents who are not prepared to spend $120,000 without knowing what the rules are.

“This process is well into its second year.

“The government changed the rule back in March/April 2010. We’re now heading to March/April 2012 before we have final decisions.”

Navitas said it expected enrolments to continue to grow at its university program colleges in Canada, Singapore and the US, and its UK operations to stabilise.

But Australian university programs earnings are expected to decline further in the second half of the year given that student volumes were 21 per cent down at the start of the period.

The company’s English language division is expected to substantially increase its earnings in the second half of the financial year, due to new government contracts.

But earnings in other parts of the business are forecast to be lower than in the previous corresponding period.

As a result, the group’s second-half earnings would be lower than in the previous corresponding period, Navitas said.

The company declared a fully-franked dividend of 9.4 cents per share, up from 8.7 cents per share for the same period in the previous year.

Navitas shares fell 35 cents, or 10.8 per cent, to $2.88 on Tuesday.